Economic Solutions

by Norman Halls, contributor

Technological change has many facets. It includes creation of new products, quality improvement and efficiency gains for existing products. Cars, lighting, computers, software – these, and in fact, nearly all products, have been improving in quality while their manufacturing costs remain constant or decrease; the economy is improving. Knowledge diffuses across countries and regions, between industries and companies, across universities and researchers. Employees learn the skills that help with current generations of technology, and those skills similarly spread geographically and between people. The processes of technology creation in scientific teams and in companies’ plant-floor work teams, determine how quickly new technology emerges. Technological success brings a financial reward to companies, which – if they keep ahead of the competitors – also increases their market share. Companies’ sizes and traits in turn affect the types and amount of their innovation, affecting technological progress. These and other matters must be understood, to be able to design appropriate policy, to understand industry competition, and to understand growth.

Why is the location of a business so important? They want convenience for easy accessibility. That is why they look for medium size regional airports, making it is easy to get around. Not only aircraft on the field, but for vehicles to get to the aircraft, Barnes Airport is Western Massachusetts diamond!   “Much of the discussion on the relationship between airport and economic development surrounds four key sub-topics: public finance, economic development, transportation and agglomerate economics, and airports in general. Airports can be considered impure public goods; therefore, in order to completely understand their worth, it is necessary to determine each individual’s marginal utility that results from the presence of a runway. Economic development is often linked with infrastructure development, which means that airports are expected to further the development of the economies of the surrounding regions. Finally, airport economics have often included pricing and congestion issues in the past, but these issues can be combined with the economic impact of airports to gain a better understanding of urban development in the context of airport development”. Melanie Green, The Impact of Airport Development on Economic Development. 

“Today’s increasingly global and high-tech economy is placing new demands on rural transportation systems.  This requires more efficient intermodal systems, with the local airport serving as a key transportation link for many rural businesses. Airport improvements, rather than new airports, may be required if rural communities are to make the most of their economic potential. Many firms note the importance of air transport access for both products and people, but few identify it as crucial”. Ron Shaffer, The Importance of Local Airports to Business.

There are many factors that contribute to a business finding the right location one that doesn’t have the political obstacles. They look at the local municipalities for expertise, power, water, regulations, taxation, education and skilled workers. Many businesses look for a business near an airport, within twenty minutes, for optimal access. The business may not ship goods out on a plane, but has access for personnel, engineers and other employees. Business looks for other characteristics that are near the airport, restaurants, hotels and car rental.  There are many benefits to having an airport in your community, especially when there is a Federal unit like the Air National Guard stationed at the airport, maintains the runways and safe surroundings.

“Why are the stronger smaller cities growing faster than larger ones? The keys may lie in many mundane factors that are often too prosaic for urban theorists. They include things such as strong community institutions like churches and shorter commutes than can be had in New York, L.A., Boston or the Bay Area (except for those willing to pay sky-high prices to live in a box near downtown). Young families might be attracted to better schools in some areas and the access to natural amenities common in many of these smaller communities. Perhaps another underappreciated factor is Americans’ overwhelming preference for a single-family home, particularly young families. A recent survey from the National Association of Realtors found that 80 percent preferred a detached, single-family home; only a small sliver, roughly 7 percent, wanted to live in a dense urban area “close to it all.” Some 87 percent expressed a strong desire for greater privacy, something that generally comes with lower-density housing”. The Best Small Cities for jobs, Forbes.

“The study of an airport’s relationship to an economy is important because this relationship has the ability to have large implications for the future growth of a city. In addition, because airports connect cities throughout a country, airport development can even transform national economies, such as the example in China that predicts airport growth in less-developed regions can alleviate the income disparity across different regions in the country”. Melanie Green  The Impact of Airport Development on Economic Development

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