Nebraska Public Power District's (NPPD) series of industry opportunity studies analyze and quantify the industrial location advantages of NPPD's service area and communities for specific targeted industry groups. The studies compare the geographically-variable operating costs for NPPD's service area with the geographic areas where these industries have traditionally been concentrated. In each study a model plant that is representative of the respective industry group is "constructed" and used to quantify these geographically-variable costs. The comparative advantages of NPPD's service area are then quantified by the two principal cost dimensions (labor-related and energy costs) that vary geographically.

Nebraska offers a wide range of locational advantages to manufacturers. An attractive business climate, a well-educated and productive labor force, reliable supplies of low cost energy, and a location central to national markets are among the leading advantages of a Nebraska location. Read on to learn more about what each study offers.

Manufacturers of Plastics Products Study

(June 2009) NAICS 3261 group, Plastics Products Industry, Approx. 38 pages.

Model Plant Size: 50 production workers, NAICS 3261

Study Size: 16 states. Besides Nebraska, these states include those that currently have the largest production in the industry as well as other states near Nebraska with which it typically competes for industrial location projects.

Advantages: CCompared to the 15 alternative states, Nebraska is found to offer an average annual savings of $193,805 in labor-related costs, which is 8.9 percent less than the average labor costs for the other states.

This study also concludes that a Nebraska plant location offers a significant energy cost advantage. Industrial electric rates for the alternative states average 61.3 percent more, and the average industrial gas rate is 20.6 percent higher than Nebraska. Combining these advantages, Nebraska's energy cost for the model plant is 35.5 percent less than the average for the 15 alternative locations.

Together, Nebraska's annual labor and energy costs for the model plant are $366,686, or 13.7 percent less than the average costs for the 15 alternative states. Conversely, the average labor and energy costs in the alternate 15 states are 15.9 percent more than the Nebraska labor and energy costs.

• Download your complete copy today - Plastics Study (PDF, 919 KB)
• Request a bound copy by emailing econdev@nppd.com
• Subscribe to online announcements for future studies and additional economic development information using the Library Request Form

Food Processing Study

(October 2009) Generally applicable for the Food Processing industry as a whole (NAICS 311), Approx. 43 pages. Model Plant Size: 50 employees, NAICS 311 Study Size: 16 states. Besides Nebraska, these states include those currently having the largest production in the industry as well as other states near Nebraska with which the state typically competes for industrial location projects.

Advantages: Compared to the average labor costs for the 15 alternative states, Nebraska is found to offer an annual savings of $335,969 in labor related costs, which is 11.9 percent less than the average labor costs for the other states.

Together, Nebraska’s annual labor and energy costs for the model plant are $493,777, or 14.1 percent less than the average annual labor and energy costs for the 15 alternative states. Conversely, the average labor and energy costs in the other 15 states are 16.4 percent more than the Nebraska labor and energy costs for the food processing model plant.

• Download your complete copy today - Food Processing Study (PDF, 1.1 MB)
• Request a bound copy by emailing econdev@nppd.com
• Subscribe to online announcements for future studies and additional economic development information using the Library Request Form

Manufacturers of Fabricated Metal Products Study

(May 2010) Generally applies to NAICS 332, Fabricated Metal Product Manufacturing subsector, Approx. 42 pages. Model Plant Size: 50 production workers, NAICS 332 Study Size: 16 states. Besides Nebraska, these states include the top seven states in terms of value added by the Fabricated Metal Product Manufacturing subsector, the eight states with the highest potential for wind power generation (Nebraska ranks 3rd), and other states near Nebraska with which it typically competes for industrial location projects.

Advantages: Compared to the 15 alternative states, Nebraska is found to offer an annual savings of $169,000 in labor-related costs, which is 6.7 percent less than the average labor costs for the other states.

This study also concludes that a Nebraska plant location offers a significant energy cost advantage. Industrial electric rates in the alternative states average 17.2 percent higher, and the average industrial gas rate is 10.2 percent more. Combining these advantages, Nebraska's energy cost for the model plant is 13.8 percent lower than the average for the other 15 alternative locations.

Together, Nebraska's annual labor and energy costs for the model plant are $202,600, or 7.2 percent less than the average costs for the 15 alternative states. Conversely, the average labor and energy costs in the other states are 7.8 percent more than the Nebraska labor and energy costs.

• Download your complete copy today - Fabricated Metal Products Study (PDF, 938 KB)
• Request a bound copy by emailing econdev@nppd.com
• Subscribe to online announcements for future studies and additional economic development information using the Library Request Form

Manufacturers of Medical & Surgical Instruments Study

(October 1997) SIC 3841 and SIC 3842, Medical and Surgical Instruments Industry, Approx. 44 pages. Model Plant Size: 50 employees, SIC 3841 and SIC 3842 Study Size: 17 states. Besides Nebraska, these states include those that currently have the largest production in the industry as well as other states near Nebraska with which it typically competes for industrial locations.

Advantages: The medical and surgical instruments industry consists of more than 4,192 establishments engaged in producing a wide range of medical instruments and surgical appliances and supplies. Experiencing rapid growth during the past 15 years, the industry also has a favorable long-term outlook. Nationally, shipments of medical and surgical instruments are forecast to grow at a compound rate of 5.8 percent annually during the 1992-2005 projection period. The Nebraska annual labor cost advantage ranges from an annual savings of $64,590 when compared to the Texas location to a high of $690,070 when compared to the Michigan plant site. Compared to the average labor costs for the 16 alternative plant sites, Nebraska's annual labor cost advantage is $251,010, or 15.2 percent below the average for the other states. In addition to the labor cost advantage, the Nebraska plant site also enjoys a significant energy cost advantage. Electric rates in the 16 alternative states average 36.4 percent above those in Nebraska. The average industrial gas rate in the other locations is 27.8 percent above the Nebraska rate. When compared to the average total energy annual cost for the other plant sites, the energy cost for the Nebraska model plant is $35,562 or 24.1 percent lower. The combined annual labor and energy costs for Nebraska are $286,574 below the average of the other locations. Conversely, average labor and energy costs for the 16 alternative plant sites are 19.1 percent higher than the costs for the medical and surgical products model plant located in Nebraska. On a per-worker basis, Nebraska's labor and energy costs of $29,996 are $5,731 less than the average of $35,727 for the other 16 plant sites.

• Request a bound copy by emailing econdev@nppd.com
• Subscribe to online announcements for future studies and additional economic development information using the Library Request Form