Mitsubishi Motors in Illinois

Abstract

Are state and local economic incentives to attract new firms worthwhile? Mitsubishi Motors in Illinois provides in-depth analysis of the incentives offered to land Diamond-Star Motors, the plant's labor force, supplier organization, and its community impact to answer this question. The authors conclude with a benefit-cost analysis of the incentive package at the community and at the state level. Written in nontechnical language, the book is intended for planners and administrators in state and local government, economic and business development officers, and international corporate management, as well as economists and public policy analysts. Although much research has been compiled separately on the various issues surrounding the establishment of Japanese auto manufacturing plants in the United States, this work is unique for its direct surveys of workers, suppliers, members of the community, and city and state leaders involved in the negotiations. Data on the local housing impact are drawn from detailed examination of loan applications in the community during the major hiring period at the plant. While some results confirm previous work, the authors find many differences, particularly in the composition of the labor force and the effect of just-in-time production methods on supplier location. The book provides a comprehensive view of the community and regional impact of a Japanese auto manufacturing plant which can be used as a model for planning economic development strategies to attract new firms to states and communities. Written in nontechnical language, the book is intended for planners and administrators in state and local government, economic and business development officers, and international corporate management, as well as economists and public policy analysts.