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Ernst & Young, one of the world's leading professional services organizations, did a study on which aspects are crucial for the choice of location in 2004.
Overall production cost was the number one on the list followed by labor cost and the qualification of the local work force. However, there many more aspects which have to be taken into consideration...
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Proximity to major markets, regional infrastructure, political terms and availability of resources are just some factors which cannot be overseen. In Germany for instance the production cost is particularly expensive because of the high labor cost and the high real estate prices. Looking at Germany, where labor and production costs are extremely high, shifting production can be extremely beneficial...
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