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Puerto Rico’s strong supply
of highly skilled labor, significant incentives package, favorable
wage differential and well-developed manufacturing infrastructure
provide the ideal environment for industries.
Puerto Rico sustains over 2,300 diversified industrial plants -
including many leading Fortune 500 multinationals - that produce
everything from apparel and computer motherboards to pharmaceuticals
and medical devices. All of them benefit from the Island’s
wealth of facilities, favorable business climate and a well-educated,
bilingual workforce that is capable of maintaining demandingly high
quality standards.
The loyalty of the Puerto Rican workforce, seldom found in other
markets, coupled with its ability to quickly master the most intricate
tasks, has contributed to make the Island one of the largest high-tech
industrial development centers in the United States. The value added
by Puerto Rican workers for every dollar in production payroll wages
is double the average performance registered in manufacturing on
the U.S. mainland. No wonder plants in Puerto Rico often rank #1
on measures of productivity and quality within their parent company
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In the classical location
theory there is input orientation vs. market orientation. More complex
models include multiple input and outputs, geographic variation
in labor costs, tax and regulatory dimensions. To insure its position
as one of the premier manufacturing locations in the world and facilitate
its further development, Puerto Rico has identified its top five
industry groups or clusters: |
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- Suppliers are enhanced – There is more specialization,
more competition and an economy of scale is developed.
- Knowledge spillovers – There are more opportunities to
seek experts in various areas or share knowledge in specific areas
- Reduced transaction costs – Common protocols and language
for the industry are created.
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- Lower trade barriers reduce need to locate in market companies
- Reduced transportation and communication costs facilitate long-distance
shipping and lower costs for standardized, objective transactions.
- Some transactions are more effective in close proximity: Issues
include complexity, lack of standardization and variability.
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