Reference no: EM132202452

Kelly Edwards, the recently appointed vice president of development for HOG, Inc., a highway construction company in central Pennsylvania, had just returned from meeting with the senior management team of the company. At the meeting, Harry O. Growbaker, president of HOG, Inc., had reported on his most recent meetings with the Pennsylvania Department of Transportation in Harrisburg. The focus of the presentation and discussion was a new state funding initiative that would support regional highway projects throughout the state. The highways, bridges, and overall infrastructure throughout the state needed improvements and expansion. The development of significant shale gas and oil drilling had strained the existing network but had provided additional tax funds for needed public projects. Harry O. Growbaker was convinced that HOG, Inc. was in a unique position to participate, but that they needed to be proactive to demonstrate the economic benefit and impact of such stimulus spending in central Pennsylvania. Harry asked Kelly to provide some discussion points for the next meeting of the senior management team. Kelly decided to meet with two of her senior staff members, Shaun Knight and Barb Collins, to help with this assignment. During the course of their discussion, Kelly pointed out the lack of efficient and effective highway connections throughout the center of the state. Interstate 80 was a major east–west corridor for interstate traffic between the Midwest and major East Coast cities, but with limited impact overall in much of central Pennsylvania, particularly for north–south flows. The potential economic growth in central Pennsylvania was creating a need for a more effective north–south link and also more efficient local roadways. Barb Collins felt that a proposed highway link would be attractive to the state and also the federal government. Shaun, who had participated in many economic impact studies, pointed out the possible synergism with the University Park campus of Penn State and perhaps some of their satellite locations throughout the state. He noted the development of the research park at Penn State’s University Park Campus and the new University president’s interest in helping the state with economic development and playing a more active role in encouraging new companies based upon applied research at the university. Shaun felt that there was much opportunity to encourage and enhance such development with improved transportation. Kelly Edwards became excited as she listened to this discussion and was convinced that they could develop a list of discussion points for the next senior management meeting that could then be developed into a white paper for the state and Federal Departments of Transportation. You have recently been hired by HOG, Inc., and Ms. Edwards has asked you to develop an initial set of discussion points that would indicate the economic and, perhaps, social benefits from new highway links in central Pennsylvania.

Kelly Edwards, the recently appointed vice president of development for HOG, Inc., a highway construction company in central Pennsylvania, had just returned from meeting with the senior management team of the company. At the meeting, Harry O. Growbaker, president of HOG, Inc., had reported on his most recent meetings with the Pennsylvania Department of Transportation in Harrisburg. The focus of the presentation and discussion was a new state funding initiative that would support regional highway projects throughout the state. The highways, bridges, and overall infrastructure throughout the state needed improvements and expansion. The development of significant shale gas and oil drilling had strained the existing network but had provided additional tax funds for needed public projects. Harry O. Growbaker was convinced that HOG, Inc. was in a unique position to participate, but that they needed to be proactive to demonstrate the economic benefit and impact of such stimulus spending in central Pennsylvania. Harry asked Kelly to provide some discussion points for the next meeting of the senior management team. Kelly decided to meet with two of her senior staff members, Shaun Knight and Barb Collins, to help with this assignment. During the course of their discussion, Kelly pointed out the lack of efficient and effective highway connections throughout the center of the state. Interstate 80 was a major east–west corridor for interstate traffic between the Midwest and major East Coast cities, but with limited impact overall in much of central Pennsylvania, particularly for north–south flows. The potential economic growth in central Pennsylvania was creating a need for a more effective north–south link and also more efficient local roadways. Barb Collins felt that a proposed highway link would be attractive to the state and also the federal government. Shaun, who had participated in many economic impact studies, pointed out the possible synergism with the University Park campus of Penn State and perhaps some of their satellite locations throughout the state. He noted the development of the research park at Penn State’s University Park Campus and the new University president’s interest in helping the state with economic development and playing a more active role in encouraging new companies based upon applied research at the university. Shaun felt that there was much opportunity to encourage and enhance such development with improved transportation. Kelly Edwards became excited as she listened to this discussion and was convinced that they could develop a list of discussion points for the next senior management meeting that could then be developed into a white paper for the state and Federal Departments of Transportation. You have recently been hired by HOG, Inc., and Ms. Edwards has asked you to develop an initial set of discussion points that would indicate the economic and, perhaps, social benefits from new highway links in central Pennsylvania.

The oldest and most economically, socially, and politically developed cities in the world are located on the coasts of the major continents. This is no surprise since water transportation is the oldest form of established transportation in the world. In the United States, cities like Philadelphia and New York were established centuries ago because of access to the Atlantic Ocean. However, a similar pattern can be found in the United States with inland cities, such as Pittsburgh, Pennsylvania, and Detroit, Michigan. While these cities do not have access to coastal waters, they are situated near inland waterways. Also unique to these two cities was their manufacturing specialization: steel in Pittsburgh and automobiles in Detroit. Using the information contained in this chapter:

1. Explain what role transportation played in the development of these two cities.

2. Discuss what factors would lead to their manufacturing specialization.

3. Identify any other benefits to a city or geography that manufacturing specialization would create.