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The influence of airports on the location of non-aviation industry : a case study : The Vancouver metropolitan… Northey, John Laird 1963

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THE INFLUENCE OF AIRPORTS ON THE LOCATION OF NON-AVIATION INDUSTRY. A CASE STUDY: THE VANCOUVER METROPOLITAN AREA, B.C.  by  JOHN LAIRD NORTHEY B..A., U n i v e r s i t y of B r i t i s h C o l u m b i a , 1957  A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF ARTS i n t h e Department of COMMUNITY AND REGIONAL PLANNING We a c c e p t t h i s t h e s i s as c o n f o r m i n g t o t h e required standard  THE UNIVERSITY OF BRITISH COLUMBIA A p r i l , 1963  In presenting  this thesis i n p a r t i a l fulfilment of  the r e q u i r e m e n t s f o r an advanced degree a t t h e U n i v e r s i t y o f B r i t i s h Columbia, I agree t h a t t h e L i b r a r y s h a l l make i t f r e e l y a v a i l a b l e f o r r e f e r e n c e and s t u d y . f o r extensive  I f u r t h e r agree t h a t p e r m i s s i o n  c o p y i n g o f t h i s t h e s i s f o r s c h o l a r l y p u r p o s e s may be  g r a n t e d by t h e Head o f my Department o r by h i s  representatives.  I t i s understood t h a t copying o r p u b l i c a t i o n o f t h i s t h e s i s f o r f i n a n c i a l g a i n s h a l l n o t be a l l o w e d w i t h o u t my w r i t t e n  Department o f  Community and Regional Planning  The U n i v e r s i t y o f B r i t i s h Vancouver 8, Canada. D  ate  A  p  r  U  Columbia,  XQ, 1963  1  permission.  ABSTRACT A i r p o r t s , as t e r m i n a l s f o r a new and dynamic form o f t r a n s p o r t a t i o n , a r e n o t o n l y ^ p l a c e s f o r t h e movement and s t o r a g e o f a i r c r a f t — have a major i n f l u e n c e on urban development.  they  T h i s f a c t i s o f t e n under-  e s t i m a t e d by c i v i c o f f i c i a l s , a i r l i n e o f f i c i a l s , and p l a n n e r s .  Airports  as t e r m i n a l s a r e no d i f f e r e n t i n f u n c t i o n from t h e o l d e r and more w e l l e s t a b l i s h e d p o r t and r a i l t e r m i n a l s around which many o f t o d a y ' s c i t i e s have d e v e l o p e d . Today, as i n t h e p a s t , i n d u s t r y o f t e n demonstrates a p r e f e r e n c e f o r s i t e s n e a r major t r a n s p o r t a t i o n t e r m i n a l s and r o u t e s i n o r d e r t o m i n i m i z e t r a n s f e r c o s t , and t o i n c r e a s e convenience o f h a n d l i n g .  The a i r p o r t , as  a n o t h e r type o f t r a n s p o r t a t i o n t e r m i n a l , c o u l d t h e r e f o r e , be e x p e c t e d t o e x e r c i s e a s i m i l a r i n f l u e n c e , as t h e e f f i c i e n c y and u t i l i z a t i o n o f a i r i f r e i g h t and c o r p o r a t e a i r t r a v e l i n c r e a s e . airport-community  W i t h i n the context of the t o t a l  r e l a t i o n s h i p , a determination of the d e s i r a b i l i t y to  i n d u s t r y o f s i t e s l o c a t e d i n p r o x i m i t y t o a major a i r p o r t i s c o n s i d e r e d s i g n i f i c a n t . To t h i s end t h e h y p o t h e s i s i s advanced t h a t : AS THE MAJOR AIRPORT EVOLVES INTO A PASSENGER AND FREIGHT TERMINAL, CERTAIN TYPES OF INDUSTRIAL ESTABLISHMENTS OTHER THAN THOSE DIRECTLY CONCERNED WITH AVIATION, WILL DESIRE LOCATIONS ON OR NEAR THE AIRPORT SITE. A CASE STUDY: THE VANCOUVER METROPOLITAN AREA, BLC. The  first  stage i n t h e i n v e s t i g a t i o n was t o a s c e r t a i n t h e n a t u r e  of a i r f r e i g h t and c o r p o r a t e a i r t r a v e l , and t o d e s c r i b e t h e methods whereby these two new forms o f t r a n s f e r c o u l d b e n e f i t t h e o p e r a t i o n o f c e r t a i n types of f i r m s . ii  iii Commodities p r e s e n t l y b e i n g described,  c a r r i e d by a i r f r e i g h t were then  and t h e i r common c h a r a c t e r i s t i c s d e t e r m i n e d .  A high r a t i o of  v a l u e t o w e i g h t , p e r i s h a b i l i t y , f a s h i o n a b i l i t y , o r emergency d e s i r a b i l i t y were t h e most common c h a r a c t e r i s t i c s o f these commodities. a i r t r a v e l , a r a n k i n g o f f i r m s by ' p r o p e n s i t y  For corporate  t o t r a v e l ' was e s t a b l i s h e d .  S p e c i f i c examples were found o f a i r p o r t location,[by v a r i o u s trial  firms i n several c i t i e s  utilized,  i n t h e USA.  indus-  These f i r m s e i t h e r produced,  o r d i s t r i b u t e d items s u i t a b l e f o r a i r f r e i g h t , o r r e q u i r e d  sive corporate relevance  travel.  in"these  The h y p o t h e s i s  exten-  was, t h e r e f o r e , shown t o have some  cities.  From t h e e s t a b l i s h e d d a t a , a l i s t was d e r i v e d o f t h e t y p e s o f firms considered airport.  t o be those most l i k e l y t o d e s i r e l o c a t i o n near a major  The l i s t was g e n e r a l and d i d n o t t a k e i n t o account r e g i o n a l  d i f f e r e n c e s i n economies.  In-order  t o d e l i n e a t e t h e most s u i t a b l e t y p e s  of f i r m s and t o c a r r y out i n t e r v i e w s i n t h e Case Study A r e a , . i t was n e c e s s a r y f i r s t t o study t h e l o c a l economy and t o amend t h e above l i s t . By t h i s method, o n l y t h o s e f i r m s would be i n t e r v i e w e d t a t i v e o f c o n d i t i o n s i n t h e Case Study A r e a . chosen t h a t r e p r e s e n t e d  t h a t were  represen-  A Study Group was t h e n  a cross-section of s u i t a b l e l o c a l firms.  In; o r d e r t o i n v e s t i g a t e a i r p o r t i n d u s t r i a l l o c a t i o n i n d e p e n d e n t l y from o t h e r  industrial location criteria,  t h e a t t r a c t i v e n e s s o f an a i r p o r t  s i t e l o c a t i o n was a s c e r t a i n e d under t h e f o l l o w i n g assumptions: i ) S u i t a b l e l a n d a t a c o m p e t i t i v e p r i c e must be a v a i l a b l e a t o r c l o s e t o Vancouver I n t e r n a t i o n a l A i r p o r t ; i i ) Good q u a l i t y r o a d and r a i l f a c i l i t i e s must connect t h e a i r p o r t t o t h e major t r a f f i c g e n e r a t o r s o f t h e m e t r o p o l i t a n a r e a ; i i i ) Market f a c t o r s must i n d i c a t e t h e d e s i r a b i l i t y o f p l a n t expansion, relocation, or creation;  iv)  S e r v i c e s such as w a t e r , sewer, and d r a i n a g e must be a v a i l a b l e at reasonable cost;  v) A i r p o r t and M u n i c i p a l zoning development a n t i c i p a t e d ; vi)  r e g u l a t i o n must p e r m i t t h e  A i r f r e i g h t r a t e s w i l l decrease as more e f f i c i e n t are i n t r o d u c e d and f r e i g h t volume i n c r e a s e s ;  aircraft  v i i ) A Customs P o r t w i l l be e s t a b l i s h e d a t t h e a i r p o r t i n t h e near f u t u r e . A n a l y s i s o f t h e survey response i n d i c a t e d t h a t the m a j o r i t y o f the managers of f i r m s i n t h e Study Group had c o n s i d e r e d of a i r f r e i g h t and c o r p o r a t e  the p o t e n t i a l e f f e c t s  a i r t r a v e l on t h e i r o p e r a t i o n s .  f i v e p e r c e n t o f the f i r m s i n t e r v i e w e d  Twenty-  s i g n i f i e d t h a t r e l o c a t i o n of p a r t  or a l l of t h e i r p l a n t s t o a s i t e n e a r Vancouver I n t e r n a t i o n a l A i r p o r t was a d i s t i n c t p o s s i b i l i t y i n t h e n e a r f u t u r e . - T h i r t y - f i v e p e r c e n t agreed w i t h the hypothesis  i n p r i n c i p l e , but b e l i e v e d i t i m p r a c t i c a l f o r them  because of o t h e r f a c t o r s .  Some of t h e s e f a c t o r s (such as, f o r example,  a need f o r l o c a t i o n s c e n t r a l t o s e r v i c e a r e a s ) may be reduced t h r o u g h future metropolitan  growth.  F o r t y percent of the f i r m s r e j e c t e d the  hypothesis. A l t h o u g h f u r t h e r , more s c i e n t i f i c s u r v e y s a r e r e q u i r e d , c r i t e r i a emerged t h a t may have s i g n i f i c a n c e f o r p l a n n i n g M e t r o p o l i t a n Area or i n regions  economically  several  i n the Vancouver  s i m i l a r to t h i s  area:  i ) W h o l e s a l e D i s t r i b u t o r s of Auto P a r t s , T e x t i l e s , and I n d u s t r i a l M a c h i n e r y , and D i s t r i b u t i o n f i r m s were those most f a v o u r a b l e t o a i r p o r t l o c a t i o n . M a n u f a c t u r e r s were g e n e r a l l y u n f a v o u r able; \ i i ) Warehouses would comprise t h e predominant type o f i n d u s t r i a l use i n any development i n p r o x i m i t y t o t h e a i r p o r t ; i i i ) L a r g e f i r m s o f n a t i o n a l o r i n t e r n a t i o n a l scope were those most f a v o u r a b l e t o t h e h y p o t h e s i s ; iv)  F i r m s t h a t i m p o r t e d c l o s e t o 100 p e r c e n t o f t h e i r tended t o be those most f a v o u r a b l e ;  stock  V  v) There i s a d i r e c t r e l a t i o n s h i p between p r e s e n t r e g u l a r use of a i r f r e i g h t , and a n t i c i p a t e d f u t u r e r e g u l a r use, w i t h d i p o s i t i o n t o l o c a t e a t o r near the a i r p o r t . C o r p o r a t e a i r t r a v e l , though of c o n c e r n , i s not a d e f i n i t i v e i n c e n t i v e f o such l o c a t i o n .  ACKNOWLEDGMENTS Many people c o n t r i b u t e towards t h e c o m p l e t i o n o f a t h e s i s such as t h i s , t h e i r comments r a n g i n g from h i n t s on methodology and grammar t o f u l l s c a l e r e v i e w .  I t i s impossible to give c r e d i t to  a l l those who made s u g g e s t i o n s , as some o f t h e most unassuming comments were o f t e n those of g r e a t e s t s i g n i f i c a n c e .  My a p p r e c i a -  t i o n must be g i v e n t o D r . H. P. O b e r l a n d e r f o r h i s guidance i n t h e initial  s t a g e s ; t o D r . K. J . C r o s s f o r h i s p a t i e n t , d i l i g e n t , and  c o n s t r u c t i v e s u g g e s t i o n s d u r i n g the w r i t i n g o f t h e paper; and t o D r . J . N. J a c k s o n , whose comments were o f c o n s i d e r a b l e h e l p i n t h e w r i t i n g of the f i n a l d r a f t .  The a s s i s t a n c e o f Mr. J a c k M i l l e r , o f  Johnston N a t i o n a l A i r F r e i g h t Forwarding, i n p r o v i d i n g a i r f r e i g h t s t a t i s t i c s i s g r a t e f u l l y acknowledged,  as a r e t h e comments and time  g i v e n by the v a r i o u s b u s i n e s s e x e c u t i v e s t h a t were i n t e r v i e w e d . The c o u r t e o u s and a t t e n t i v e r e c e p t i o n by these busy i n d i v i d u a l s of an uninformed s t u d e n t i s t o t h e c r e d i t of t h e Vancouver community.  business  L a s t , and c e r t a i n l y n o t l e a s t , I must e x p r e s s my  admir-  a t i o n f o r my w i f e , who b e s i d e s t h e r e v i e w of grammar and s y n t a x provided continuous moral support.  vi  TABLE OF CONTENTS Page ABSTRACT  i i  ACKNOWLED GMENTS  vi  LIST OF TABLES.  x  Chapter I . INTRODUCTION. A B  .  T r a n s p o r t a t i o n T e r m i n a l s and t h e Growth o f C i t i e s The A i r p o r t and t h e Community (a) G e n e r a l s i g n i f i c a n c e (b) Economic impact (c) E f f e c t on i n d u s t r y (d) Significance f o r planning  I I . AIR FREIGHT AND THE CORPORATE USE OF AIRCRAFT -- CHARACTERISTICS AND EFFECTS A  B  C  10  A i r Freight (a) Development (b) Advantages over c o n v e n t i o n a l forms o f transport (c) G e n e r a l e f f e c t s on i n d u s t r i a l l o c a t i o n A i r Travel f o r Corporate Personnel (a) B e n e f i t s f o r e x e c u t i v e and s a l e s personnel (b) E f f e c t on i n d u s t r i a l l o c a t i o n  I I I . FACTORS CONTRIBUTING TOWARDS AIRPORT INDUSTRIAL LOCATION -- EXAMPLES OF SUCH LOCATION A B  1  21  A i r F r e i g h t -- Commodities. Most C a r r i e d B u s i n e s s F l y i n g — I n d u s t r i e s By T r a v e l Desire A i r p o r t Location of Industry (a) S p e c i f i c examples -- l o c a t i o n and intended l o c a t i o n (b) I n d u s t r i e s s u i t a b l e f o r study  Chapter IV. SELECTION OF INDUSTRIAL FIRMS FOR STUDY: A VANCOUVER METROPOLITAN AREA CASE STUDY vii  33  viii  • •  •. Page  A B  C D E  V.  QUESTIONNAIRE ANALYSIS A  B  IV.  56  A n a l y s i s o f Response (a) C h a r a c t e r i s t i c s o f f i r m s f a v o u r a b l e t o the h y p o t h e s i s (b) C h a r a c t e r i s t i c s o f f i r m s f a v o u r a b l e t o the h y p o t h e s i s i n p r i n c i p l e , b u t possessing c e r t a i n reservations (c) C h a r a c t e r i s t i c s o f f i r m s r e s p o n d i n g u n f a v o u r a b l y t o the h y p o t h e s i s (d) P r e f e r e n c e Groups: d i f f e r e n c e s and similarities A i r p o r t O r i e n t e d Development, R e s e r v a t i o n s , and R e j e c t i o n s -By P r e f e r e n c e Groups (a) . F i r m s f a v o u r a b l e t o the h y p o t h e s i s : a i r p o r t development (b) R e s e r v a t i o n s o f f i r m s g i v i n g cond i t i o n a l acceptance o f the h y p o t h e s i s (c) F i r m s u n f a v o u r a b l e t o the h y p o t h e s i s : reasons f o r i n a p p l i c a b i l i t y  APPRAISALS AND CONCLUSIONS: SUGGESTIONS FOR FURTHER STUDY A  B  C APPENDIX  Methodology R e g i o n a l C h a r a c t e r i s t i c s o f the Vancouver M e t r o p o l i t a n Area (a) G e n e r a l o r i e n t a t i o n o f the economy (b) M a n u f a c t u r i n g : characteristics i n the m e t r o p o l i t a n a r e a A i r Freight Characteristics: Vancouver M e t r o p o l i t a n A r e a C h a r a c t e r i s t i c s of A i r T r a v e l : Vancouver M e t r o p o l i t a n A r e a I n d u s t r i e s S u i t a b l e f o r Study: Vancouver M e t r o p o l i t a n A r e a  I  APPENDIX I I  • 72  A p p r a i s a l o f Methodology; Sources o f E r r o r (a) S e l e c t i o n o f Study Group (b) V a l i d i t y o f q u e s t i o n n a i r e and i n t e r v i e w method V a l i d i t y o f the H y p o t h e s i s (a) Review o f h y p o t h e s i s and major assumptions (b) C o n c l u s i o n s from q u e s t i o n n a i r e r e s u l t s S u g g e s t i o n s f o r F u r t h e r Study AIR FREIGHT MOVEMENT: AIRPORTS FIRMS FOR STUDY:  SOME REPRESENTATIVE  METHOD OF SELECTION  89  91  ix  . ... Page  APPENDIX I I I QUESTIONNAIRE DERIVATION AND SCHEDULE APPENDIX APPENDIX  IV INTRODUCTORY LETTER  99 108  V QUESTIONNAIRE RESPONSE AND TABULATION METHOD  HI  FOOTNOTES  126  BIBLIOGRAPHY  132  X  LIST OF TABLES Table -1.  Page I n d u s t r i a l L o c a t i o n Employing  Truck  Transportation............................................. • • 2.  I n d u s t r i a l L o c a t i o n Employing A i r T r a n s p o r t a t i o n . . . . ......... ..... ...... ......................  3.  A i r Freight--New Y o r k Region—1950......................  4.  Commodities Most F r e q u e n t l y Shipped By A i r F r e i g h t i n t h e U n i t e d S t a t e s (1955) .... .p8 ............ . P e r c e n t a g e Employment i n Major I n d u s t r y Groups: Lower M a i n l a n d R e g i o n (1951-56).........«............•  5. 6.  7. 8.  9.  10.  Rate o f Growth, and Employment D i s t r i b u t i o n i n t h e Lower M a i n l a n d R e g i o n , By M a n u f a c t u r i n g . I n d u s t r y Groups (1956) ........ M a j o r Items P u r c h a s e d O u t s i d e t h e Lower M a i n l a n d R e g i o n , By M a n u f a c t u r i n g I n d u s t r y Groups (1956)..,.,.....  12.  18 22  24 36  40 42  .Percentage o f T o t a l P r o d u c t i o n S o l d O u t s i d e B. C., By M a n u f a c t u r i n g I n d u s t r y Groups i n t h e Lower M a i n l a n d (1956) ..... . ... ...... .  44  \  Head O f f i c e s O u t s i d e t h e Lower M a i n l a n d Region E x p r e s s e d as a P e r c e n t a g e o f A l l t h e F i r m s i n Each M a n u f a c t u r i n g I n d u s t r y Group (1956).............. P a s t and F o r e c a s t A i r F r e i g h t Movements: Vancouver I n t e r n a t i o n a l A i r p o r t . , '..................... ... 0  11.  17  S p e c i f i c Commodity P r e f e r e n t i a l A i r F r e i g h t Rate S t r u c t u r e Between Vancouver and E a s t e r n C i t i e s (1962-63)...  v.............. ;  45 47  49  C a t e g o r i e s , Types, and Weight F a c t o r s o f F i r m s S u i t a b l e f o r Study i n t h e Vancouver M e t r o p o l i t a n Area.« . ..... ....... ........ ....... .......... . . ... . . ... . . . .. .  54  CHAPTER I  INTRODUCTION  A.  T r a n s p o r t a t i o n t e r m i n a l s and growth of c i t i e s  the  We a r e v e r y slow t o l e a r n . Our new a i r p o r t s are s t i l l p l a n n e d w i t h o l d a t t i t u d e s and t a l e n t s ; the same i n t e r e s t s t h a t f a i l e d i n the past are r e c a l l e d f o r s t i l l more a d v i c e : and the r e s u l t s are the same s t a t i c c o n c e p t i o n of a i r p o r t s as b e i n g m e r e l y bases f o r a i r p l a n e s , and the same inadequate, i n a c c e s s i b l e l o c a t i o n s f o r them b e i n g made a v a i l a b l e by the l o c a l government. What a i r p o r t s a r e r e a l l y meant t o be and how t h e y s h o u l d b e s t serve c o n t i n u e s t o elude u s ; . . . the o p p o r t u n i t i e s have e x i s t e d , but the f o r e s i g h t has n o t , to take the A i r Age f o r what i t r e a l l y i s - a g i g a n t i c e v o l u t i o n i n the h a b i t s of man - and t o p l a n f o r i t b e i n g j u s t as p r a c t i c a l as i t i s i m a g i n a t i v e . . . One day the a i r age w i l l r e a c h i t s own z e n i t h . I t w i l l c r e a t e i t s own c i t i e s and, i n e f f e c t , e p i t o m i z e the change i n the h a b i t s of man. We cannot c o l l a p s e time and d i s t a n c e as we i n t e n d t o do w i t h o u t l e a v i n g a new mark on the l a n d . 1 T h i s statement of  i n t r o d u c e s the b a s i c theme of t h i s paper - the  the modern l a r g e a i r p o r t upon the t o t a l urban environment.  such i s not a new  The  impact  impact  as  phenomenon, i t has been e x p e r i e n c e d c o u n t l e s s times i n the  p a s t as c i t i e s , towns and v i l l a g e s have grown around good h a r b o u r s or r a i l road d i v i s i o n a l p o i n t s . to  The phenomenon does not d i f f e r when i t i s a p p l i e d  a i r p o r t s ; o n l y the means of t r a n s p o r t d i f f e r s .  Throughout h i s t o r y  the  i n t r o d u c t i o n of new modes of t r a n s p o r t a t i o n , the opening o f f r e s h l i n e s of communication, and the c o n s t r u c t i o n of new  r o u t e s and s e r v i c e s , have  c r e a t e d and d e s t r o y e d urban l o c a t i o n a l v a l u e s and growth r a t e s . t r a n s f o r m e d space r e l a t i o n s h i p s and improved  They have  o r l e s s e n e d the advantages of  areas as l o c a t i o n s f o r urban e x p a n s i o n . It  i s not i n t e n d e d t o e l a b o r a t e upon the impact w h i c h r o a d , 1  rail,  and water terminals have had on the development of cities - much has been written and documented on this subject.  What is of concern is the effect  the new air terminals w i l l have on urban growth and the relationships between c r i t i c a l land-uses.  One of the major problems in this regard is  that expressed in the opening quotation—the inability of the public, and many civic leaders to regard the airport in the same fashion as they view the port or the railroad--that is, as an integral part of community service and development. An airport has to serve at the same time and place the functions of a dock and of a railway station; soon i t may have to be a bus-stop as well. The world has not yet got used to living with airports, and although a great many people travel regularly by air, airports themselves have not yet become part of the community in the sense that railway stations have.... railways went automatically from town centre to town centre, and their main^stations were built in the middle of towns . . . one thing it did ensure was that railways became very much part of peoples' lives. Aeroplanes came late in the day when there was no room for airports in town centres . . . Thus, although an airport may be an important centre of town l i f e , i t remains in many ways detached from it . . . Added to geographic detachment is a more complex emotional remoteness. The bustling life of a railway station is obvious, and so is the work that goes on at the docks. The traveller by air sees l i t t l e or nothing of his aeroplane until he is marshalled onto i t . ^ ~ A lack of awareness of the airport's role in the community is not warranted in view of the intensity of aircraft utilization.  In 1957,  domestic scheduled airlines became the largest intercity passenger carriers in the United States.  The significance of this fact is made clear when it  is realized that in 1946 the passenger statistics presented a very different picture. Rail - 60 b i l l i o n passenger miles Bus - 26 " Air - 6 11  One of the implications of this growth is that in many instances the airport has become the principal passenger terminal of a city or region.  In some  3  areas airports have become the only terminals.  This trend w i l l be accen-  tuated by new and relatively inexpensive capability - made possible by the rapid development of turbine passenger and freight aircraft. The city-building potential of transportation terminals can be manifested in various ways.  One of these is the impact on industrial  * location, both on the local and regional scales.  Industries  vary widely  in the relevance to them of transportation media and costs as a factor of location, however a l l industries depend on some form of transportation at one time or another in the process between the assembly of raw materials and the distribution of the finished product.  Many industrial concerns  are acutely interested in the varying costs of transportation in different areas, and, other things being equal, w i l l tend to locate where aggregate transportation costs are at a minimum. Industrial location close to strategic r a i l and water f a c i l i t i e s has followed. complementary commercial and residential land uses. large metropolitan centres,  Demand has arisen for The establishment of  located at the hubs of transportation systems  has allowed industry to locate at the market, derive the many benefits of urban location, yet be linked by efficient transportation media to areas of raw materials, outside markets, or other interests.  Similarly, modern  freeways, the automobile, and the trucking industry have facilitated the metropolitan suburbanization of industry - thus retaining the benefits of urban location for industry (extended to the metropolitan scale) yet providing those of space for expansion and parking, cheaper land, and lack of congestion.  ,  *The word 'industry in this paper, unless qualified by adjectives such as 'manufacturing industry', etc. refers generically to a l l forms of extractive, manufacturing, or service pursuits. 1  With such trends established, comes clear.  Within most cities,  the role of the major airport be-  industries have become grouped about the  port area, along r a i l rights of way, and near major urban highways. Municipal zoning policy has encouraged such locations; harbour shorelines, r a i l rights of way and major highway intersections being zoned for industrial or commercial use for the most part.  What then is the case for the airport  as a magnet for industrial sites in its own right?  The airport is a fixed  f a c i l i t y in the same fashion as is a quay or a r a i l line.  It is also the  centre of a new, and rapidly growing form of transportation.  Surely i t too,  now or in the future, can offer an attractive location.to certain industries other than those directly associated with aviation (as the port and the r a i l line attract industries other than those concerned with shipbuilding, or rolling stock). ^  . . . the airport and its activities frequently acted as a magnet, drawing first the sightseer and then the businessman interested in concessions. Because desirable land was cheap, and a new and advantageous type of transportation was available, industries (sometimes aeronautical, sometimes not) settled near the airport.^ This discussion leads to the hypothesis to be investigated in this  paper.  Essentially the hypothesis deals with one small segment of the  total airport-community physical, economic, and social relationship.  It is  approached with the belief that this relationship is merely a modern version, made necessary by technological innovation and progress, of the centuriesold effect of transportation media on urban and rural patterns of development . THAT AS THE MAJOR AIRPORT EVOLVES INTO A PASSENGER AND FREIGHT TERMINAL, CERTAIN TYPES OF INDUSTRIAL ESTABLISHMENTS OTHER THAN THOSE DIRECTLY CONCERNED WITH AVIATION, WILL DESIRE LOCATIONS ON OR NEAR THE AIRPORT SITE. A CASE STUDY: VANCOUVER, B.C.  (a) G e n e r a l  significance  A t t h i s s t a g e , some i l l u s t r a t i o n s of the r o l e of the a i r p o r t i n the community a r e r e l e v a n t .  S i n c e t h i s paper i s concerned  w i t h the  determina-  t i o n of t r e n d s i n i n d u s t r i a l l o c a t i o n r e l a t i v e t o the a i r p o r t , the  signifi-  cance of the a i r p o r t i n the e s t a b l i s h e d m e t r o p o l i t a n community must f i r s t be  clarified. What then i s the r e s p o n s i b i l i t y of the community i n the development and a d m i n i s t r a t i o n of i t s a i r p o r t ? The f i r s t r e s p o n s i b i l i t y i s t o r e c o g n i z e the a i r p o r t f o r what i t r e a l l y i s - a w o r k i n g t o o l used f o r a i d i n g the development, advancement and maintenance o f a community's economic and s o c i a l w e l l b e i n g .. . .. d e d i c a t e d t o the p u b l i c c o n v e n i e n c e . Large a i r p o r t s a r e b u i l t and o p e r a t e d not f o r convenience, however, nor f o r the d i r e c t revenue they may b r i n g t o a c i t y . They are an investment by a community o r r e g i o n i n i t s e l f . The e x i s t e n c e of adequate f a c i l i t i e s f o r a i r commerce undoubtedly has a g r e a t economic i n f l u e n c e over a large area. ^  In  the words o f ( t h e n S e n a t o r ) J . F. Kennedy: . . . But however d i f f i c u l t i t may be t o f o r e s e e the f u l l dimensions o f the a i r age, t h e r e can be l i t t l e doubt t h a t the m e t r o p o l i s of the f u t u r e must have a w e l l - e q u i p p e d , w e l l - d e s i g n e d and well-managed a i r p o r t . The f a t e of a c i t y and i t s p o p u l a t i o n may w e l l depend upon the e x t e n t t o w h i c h i t i s w i l l i n g t o devote i t s human and f i n a n c i a l r e sources t o a i r p o r t development.  (b) Economic  impact  In what form does the a i r p o r t c o n t r i b u t e t o the w e l f a r e of the m e t r o p o l i s or region? of A t l a n t a , Ga.,  T h i s i s i l l u s t r a t e d by the e x p e r i e n c e of the  city  a c i t y of over 1,000,000 p e o p l e , p o s s e s s i n g one of the  t e n b u s i e s t a i r p o r t s i n the U n i t e d S t a t e s . D u r i n g the y e a r s s i n c e i t s e s t a b l i s h m e n t , the A t l a n t a A i r p o r t has grown t o become one o f the n a t i o n s * major c e n t r e s of a i r t r a n s p o r t a t i o n . T h i s growth has c r e a t e d A i r p o r t employment f o r thousands of p e r s o n s , and has c o n t r i b u t e d m a t e r i a l l y t o the growth of home b u i l d i n g , commercial, and i n d u s t r i a l a c t i v i t y throughout s o u t h e r n A t l a n t a and the T r i - C i t i e s r e g i o n . For the f u t u r e , the programmed e x p a n s i o n of the  6 A i r p o r t f a c i l i t i e s and advances i n a i r t r a n s p o r t a t i o n g e n e r a l l y w i l l g c o n t i n u e t o be p o w e r f u l f o r c e s i n the f u r t h e r development of the a r e a . S i m i l a r l y , a T u l s a , Oklahoma r e p o r t , c o n s i d e r i n g the development of a v i a t i o n i n the T u l s a M e t r o p o l i t a n A r e a and  the f o r c e s b e h i n d such development, s t a t e s  i n the same v e i n : The f i r s t of t h e s e f o r c e s i s the growing importance of a v i a t i o n and a i r p o r t - a l l i e d i n d u s t r y and commerce t o T u l s a ' s economy. ^ I n the New  Y o r k - New  J e r s e y r e g i o n , p a s s e n g e r s moving through the  region's  a i r p o r t s spend s e v e r a l hundred m i l l i o n d o l l a r s e v e r y y e a r on h o t e l accomodat i o n s , f o o d , d r i n k , l o c a l t r a n s p o r t a t i o n , and e n t e r t a i n m e n t .  In a d d i t i o n ,  70,000 p e o p l e throughout the a r e a ( i n c l u d i n g t a x i d r i v e r s , h o t e l r e s t a u r a n t w o r k e r s , s a l e s c l e r k s and passenger and  cargo a c t i v i t i e s .  others)  (c) E f f e c t on  are employed because of a i r  In f a c t , a i r t r a n s p o r t a t i o n  employment f o r some 121,000 p e o p l e i n 1959.  and  provided  ^  industry  As the a i r p o r t c o n t r i b u t e s t o a community, so i t c o u l d be  expected  t o i n f l u e n c e the i n d u s t r i e s t h a t c o n t r i b u t e towards the development of community.  I n d u s t r i a l l o c a t i o n i n the v i c i n i t y of major a i r p o r t s has  that been  n o t e d i n s p e c i f i c cases: I n the New  York-New J e r s e y  Region:  An a d d i t i o n a l economic e f f e c t - secondary development i n d u c e d by the a i r p o r t . . . T h i s growth would p r i m a r i l y c o n s i s t of s e l e c t e d manufact u r i n g and d i s t r i b u t i o n f a c i l i t i e s l o c a t i n g near the s i t e based on one or more of the many a t t r a c t i o n s a s s o c i a t e d w i t h a i r p o r t developments. ^ In A t l a n t a , Georgia: . . . The c u r r e n t A i r p o r t e x p a n s i o n programme, i n v o l v i n g the i n v e s t m e n t of some 18 m i l l i o n d o l l a r s by the C i t y of A t l a n t a , the F e d e r a l government, and the v a r i o u s a i r l i n e companies, has c r e a t e d c o n s i d e r a b l e i n t e r e s t i n the l o c a t i o n of new commercial and i n d u s t r i a l e n t e r p r i s e s i n the a r e a . ^  7 In Kansas City, Missouri: It is contemplated that a planned industrial park of 1500 to 2000 acres can be developed immediately south of the Mid-Continent International Airport and served by the same Interstate Freeway which serves the a i r p o r t . ^ In the San Francisco Bay area: . . . The Port of Oakland which runs the Oakland Airport has just had a study made on the feasibility of an industrial park adjacent to the airport. The results were very encouraging. San Jose and a number of other cities are also considering this . . . the focus is on medium and small industry and light manufacturing with small d i s t r i bution and warehousing activities added.^ In Sanford, Maine: When the Navy moved its activities from a 13,000 acre airport in Sanford, Maine, t i t l e to the land and buildings went to the city. It used the site as an inducement to new industry, pointing out that the buildings were suitable for industrial use and the landing strips for cargo take-off s. In Los Angeles, Philadelphia, and other cities: From our observations in various parts of the country, we would certainly conclude that the airport industrial tracts are widespread and rapidly multiplying . . . The first one we knew about was the Airport Industrial District at Los Angeles . . . in other cases, where there has been spare airport land available . . . industrial tracts have been laid out for lease or sale . . . examples of this is the Yuba County airport at Marysville, Calif. A new airport tract is being developed at Prescott, Arizona, . . . Merced, C a l i f . , and Waterloo, Iowa . . . North Philadelphia Airport, where 800 acres w i l l be available for light manufacturing operation . . . many of these airport industrial tracts are without r a i l f a c i l i t i e s , which seems to be no handicap. 16 In Passaic County, New Jersey, because of a poor local airport: Several industries which were interested in locating in the area moved elsewhere to airports where more adequate f a c i l i t i e s were available. I? (d) Significance for planning It has been demonstrated that the airport is an integral part of the modern community, and that it possesses its own magnetism and inertia as a dynamic force helping to shape that community.  If future airport-  8 community r e l a t i o n s h i p s a r e t o be p l a n n e d i n t e l l i g e n t l y one must f i r s t u n d e r s t a n d them.  I f , i n f a c t , the a i r p o r t i n d u s t r i a l l o c a t i o n a l  trends  are s i g n i f i c a n t then they must be taken i n t o account i n f u t u r e p l a n n i n g forecasts.  A i r p o r t s must be i n c o r p o r a t e d i n r e g i o n a l and  municipal  development p l a n s w i t h an e x p e c t a t i o n of u s e f u l l i f e and p e r i o d of i n f l u e n c e comparable t o t h a t of r a i l w a y t e r m i n a l s and p o r t f a c i l i t i e s .  In  addition: ... by u t i l i z i n g t o o l s a v a i l a b l e f o r development c o n t r o l and a r e a p l a n n i n g , l o c a l i t i e s are a b l e t o maximize the advantages of the i n d u s t r i a l development p o t e n t i a l s c r e a t e d by the a i r p o r t and s e l e c t i v e l y screen-out types of o r g a n i z a t i o n s and e s t a b l i s h m e n t s not s u i t e d t o l o c a l p a t t e r n s of development.18 /  I n a r e c e n t study,  the p l a n n i n g agencies  of e l e v e n g e o g r a p h i c a l l y  s c a t t e r e d m e t r o p o l i t a n a r e a s were surveyed i n o r d e r t o e s t i m a t e probable  impact t h a t the new  j e t a i r c r a f t would l i k e l y have on each of  the m e t r o p o l i t a n a r e a s , and t o determine the p l a n n i n g p h i l o s o p h y agencies  the  towards t h e i r a i r p o r t s .  The  of  the  r e s u l t s of the survey i n d i c a t e d  t h a t i n most cases r e s p o n s i b i l i t y f o r i n t e g r a t i n g a i r p o r t s i n t o  the 19  m e t r o p o l i t a n s t r u c t u r e had not been a c c e p t e d T h i s was i n s p i t e of the f a c t t h a t :  by the p l a n n i n g  agencies.  Many of the c i t i e s q u e r i e d r e p o r t e d t h a t a p r e f e r e n c e had been i n d i c a t e d by i n d u s t r i a l f i r m s f o r l o c a t i o n s n e a r or a c c e s s i b l e t o a i r p o r t s , w i t h t h i s t r e n d tempered somewhat by the a v a i l a b i l i t y of l a n d and highway f a c i l i t i e s . . . ^0 A l a c k of. u n d e r s t a n d i n g  was  apparent of the r e l a t i o n s h i p of a v i a t i o n t o  the m e t r o p o l i s and of the impact of t h i s f o r c e on the urban scene. It  s h o u l d be remembered t h a t not a l l c i t i e s are  dependent on a i r t r a n s p o r t a t i o n .  The  potentially  degree of dependency i s a v a r i a b l e  depending on g e o g r a p h i c c r i t e r i a , and the economic, s o c i a l and l i f e of the community.  V a r i a b l e s i n c l u d e f a c t o r s such as:  political  the degree t o  9 w h i c h the c i t y i s an assembly and d i s t r i b u t i o n c e n t r e ; whether the  city  i s c o m m e r c i a l l y or i n d u s t r i a l l y i n t e r - d e p e n d e n t w i t h o t h e r c i t i e s and r e g i o n s ; whether the community d i s t r i b u t e s p r o c e s s e d goods; p o l i t i c a l r o l e a city's potential  reliance  l o c a l l y manufactured or  i n the r e g i o n or S t a t e .  Essentially,  on a i r t r a n s p o r t a t i o n i n c r e a s e s as  decentral-  I  i z a t i o n and  dependence on o u t s i d e m a t e r i a l and p e r s o n n e l i n c r e a s e .  f a c t i s of p a r t i c u l a r Chapter  IV.  n o t e t o t h i s paper, and w i l l be  illustrated in  This  CHAPTER I I  AIR  A.  FREIGHT AND THE CORPORATE USE OF AIRCRAFT CHARACTERISTICS AND EFFECTS  Air freight  (a) Development A i r F r e i g h t i s v i r t u a l l y a p o s t - W o r l d War I I c r e a t i o n .  I n 1946  s e v e r a l e n t e r p r i s i n g companies were c r e a t e d i n t h e U n i t e d S t a t e s , a l l o f w h i c h hoped t o u t i l i z e s u r p l u s cargo a i r c r a f t t o b e g i n t h i s new s e r v i c e . However, w i t h t h e g e n e r a l r e - o r i e n t a t i o n and slowdown o f t h e economy, p l u s t h e l a c k o f an adequate market f o r t h e i r s e r v i c e s , t h e m a j o r i t y o f these companies q u i c k l y passed o u t o f e x i s t e n c e . but t h e i r s t r u c t u r e has been a l t e r e d r a d i c a l l y .  O n l y two r e m a i n today, The war-time s m a l l and  i n e f f i c i e n t t r a n s p o r t s have been r e p l a c e d by l a r g e , f a s t ,  turbine-powered  a i r c r a f t s p e c i f i c a l l y d e s i g n e d and e n g i n e e r e d f o r t h e e x p e d i t i o u s and h a n d l i n g work.  loading  r e q u i r e d f o r p r o f i t a b l e , r e l i a b l e , and a t t r a c t i v e f r e i g h t  New a i r c r a f t and improved t e c h n i q u e s have made i t p o s s i b l e f o r  the i n d u s t r y t o mushroom o v e r n i g h t .  As t h e Canadian and American econo-  mies have grown i n t h e p a s t t h r e e o r f o u r y e a r s ,  demand f o r t h i s new  s e r v i c e has a l s o grown; v a r i o u s i n d u s t r i e s , i n f a c t , a r e now almost completely  dependent on a i r f r e i g h t f o r t h e d i s t r i b u t i o n o f t h e i r  With the recent  advent o f passenger j e t a i r c r a f t , a v e r y  has been made i n p o t e n t i a l f r e i g h t c a p a c i t y . 'dual-purpose' - l a r g e lower f u s e l a g e 10  large  products.  increase  These a i r c r a f t can be  compartments p e r m i t t i n g t h e t r a n s p o r t  11  of several tons of freight or express simultaneously with a f u l l complement of passengers.  (for example, Trans-Canada Airlines' Vanguard aircraft are  capable of carrying ninety-six passengers and five tons of cargo simultaneously,  in separate compartments)  One of the reasons behind the purchase  of large jetliners by the airlines was to provide capacity for freight, in order to tap this highly promising market.  Now most major airlines  run scheduled 'all-cargo' aircraft on an ever-increasing number of routes. Jetliners are now available that are 'fully convertible' - that is, capable of carrying f u l l cargo, f u l l passenger,  or combination loads, with  a minimum of conversion time between the various functions.  In its rapid  ascendancy to a place as an integral part of the North American distribution network, the growth rate of air freight outstripped even the most optimistic predictions.  There are now indications that the growth in air I  freight activity during the 1960's w i l l be comparable to the phenomenal growth of air passenger travel during the 1950's.  For example, in  i  Vancouver: The rate of growth from 1946 to 1958 is an average yearly increase of over 167<> per year. During 1955 and 1956 there was a noticeable increase in the rate of growth. The average yearly increase during these two years was over 197o. Even in the business set-back of 1957-58 cargo movement has continued to rise, though at a slower rate. In 1958, the total in and out annual tonnage was 4,705. ^ Appendix I contains the annual cargo movement for some representative airports. The scale of the utilization of air freight f a c i l i t i e s is indicated by the specifications for the freeway serving a new International Airport, west of Washington, D.C. This route w i l l serve only those vehicles travelling between Washington and the airport, however: . . . enough land in the right-of-way was procured for a dual, dual roadway, thus making possible the use of four lanes for fast passenger  12 t r a f f i c and an a d d i t i o n a l f o u r l a n e s f o r commercial [ u n d e r l i n i n g mine] ^  traffic,  (b) Advantages over c o n v e n t i o n a l forms A i r f r e i g h t , as one of the newer forms of t r a n s p o r t a t i o n , has c e r t a i n c h a r a c t e r i s t i c s w h i c h have been found h i s t o r i c a l l y i n many newly developed modes of t r a n s p o r t a t i o n . F i r s t of a l l i t i s f a s t e r than p r e v i o u s methods. And i t i s more expensive.-^ The r a t e per t o n m i l e i s the s i m p l e s t i n d e x of t r a n s f e r c o s t , r e f l e c t i n g v a r i a b l e s of p r i c e , d i s t a n c e , s i z e of shipment, d i t y , and type of s e r v i c e .  F o r a p a r t i c u l a r shipment,  type of commo-  of a s p e c i f i c i t e m ,  over an i d e n t i c a l r o u t e , and w i t h the same degree of s e r v i c e ( d o o r - t o - d o o r ) , air  f r e i g h t compares w i t h o t h e r c a r r i e r s as f o l l o w s : Air Freight R a i l Express Truck Rail Freight  -  17 13 5 3  - 22c per t o n m i l e - 16c " " - 8c " " - 6c " " " 11  These r a t e s a r e of s i g n i f i c a n c e o n l y when they are r e l a t e d t o the v a l u e o b t a i n e d i n r e t u r n f o r the a d d i t i o n a l c o s t .  That i s , a l t h o u g h a i r f r e i g h t  i s more e x p e n s i v e , what i s of concern t o the businessman i s the ' c o s t ' of the e n t i r e t r a n s p o r t a t i o n package. a l r e a d y mentioned:  reliability;  T h i s i n c l u d e s , b e s i d e s the two  factors  a v a i l a b i l i t y of s e r v i c e ; management  ( t h a t i s , e f f i c i e n c y by the t r a n s p o r t a t i o n company i n u s i n g f a s t t r a n s p o r t a t i o n f a c i l i t i e s ) ; d e s i g n c h a r a c t e r i s t i c s of equipment; and the e f f e c t on o t h e r c o s t s , such as i n v e n t o r y , warehousing,  p a c k i n g and  packaging,  and h a n d l i n g or t r a n s - s h i p m e n t . R e l i a b i l i t y i n the a i r f r e i g h t i n d u s t r y i s s t e a d i l y i m p r o v i n g as more e f f i c i e n t equipment i s i n t r o d u c e d , and r e g u l a r s c h e d u l e d runs of i n c r e a s i n g f r e q u e n c y s u p p l a n t the nonscheduled early years.  ( I n f a c t , from 1947  'tramp' f l i g h t s of the  t o 1954 domestic t r u n k l i n e s i n  s c h e d u l e d o p e r a t i o n s c a r r i e d a p p r o x i m a t e l y 63 p e r c e n t of a l l cargo t o n -  13 miles flown). The advantages of air freight in relation to distribution costs such as inventory, warehousing, packaging, handling, insurance, financing costs, obsolescence, etc., points of the medium.  is potentially one of the biggest selling  Thus it has its highest appeal among those firms  that, because of the nature of their products, or perishability or fashionability, have relatively high costs attributable to distribution. For some firms these costs are very high--as much as fifty percent of the cost of a product, although transportation costs as a percentage of total distribution costs may be very low.  However, according to Professor  Lewis, marketing expert of the Graduate School of Business Administration at Harvard, although costs of manufacturing or marketing a product are well known, costs of distributing the product are not as well known. Discussing inventories of business, Professor Lewis . . . states that a review of a l l the evidence he has seen makes him conclude that most companies don't know what their inventory carrying costs are and even when established, it is seldom broken down into its component parts. The reasons for this lack of data would seem to be found in the absence of suitable methods of assembling these costs, lack of agreement as to what costs should be included and a curious confusion as to what to do with the figures when obtained. Here is a field where it has been demonstrated that no other form of transportation can be so v i t a l l y effective in cutting costs as the airplane. 5 Changes in other distribution costs are often overlooked when a change in transportation method is effected.  For example, a drug manu-  facturer located in Chicago normally shipped his products by truck to fifteen or sixteen warehouses throughout the USA. The stock in each of these warehouses was sixty to ninety days supply for each local area. The truck shipping rate to (for example) Los Angeles was $4.07 per 100 pounds.  By air freight, the shipping rate was $15.90 per 100 pounds.  However, by air freight the manufacturer could provide second day delivery  14 s e r v i c e from t h e p l a n t i n C h i c a g o t o a L o s A n g e l e s c u s t o m e r — t h e same s e r v i c e as from t h e l o c a l warehouse.  When a i r f r e i g h t was adopted f o r  a l l p r o d u c t d i s t r i b u t i o n , warehousing c o s t s were c u t by f i f t y  percent.  G i v e n t h e average v a l u e o f t h e f i r m ' s drugs a t $8..00 p e r pound, and t h e knowledge t h a t warehousing c o s t s average f o u r t o s i x p e r c e n t s a v i n g o f two p e r c e n t  (from t h i s f i f t y p e r c e n t  of s a l e s , a  c u t i n warehousing  costs)  r e s u l t e d i n s a v i n g s o f $16.00 i n warehousing c o s t s f o r each 100 pounds s h i p p e d — m o r e t h a n o f f s e t t i n g t h e d i f f e r e n c e between a i r and t r u c k t r a n s p o r t • charges.  I n a d d i t i o n , the smaller i n v e n t o r i e s i n v o l v e d minimized  obsoles-  cence o f s t o c k s , (which amounts t o two and one h a l f t o t h r e e p e r c e n t o f s a l e s , f o r some drug f i r m s ) . f i n a n c i n g , insurance,  Lower i n v e n t o r i e s a l s o r e d u c e d c o s t s o f  and c l a i m s . ^  P a c k a g i n g and h a n d l i n g c o s t s a r e s i m i l a r l y reduced w i t h t h e use of a i r f r e i g h t , a r t i c l e s b e i n g journey.  s u b j e c t t o l e s s h a n d l i n g and a smoother  The much s h o r t e r time spent i n t r a n s i t reduces t h e need f o r  heavy padding and p r o t e c t i o n a g a i n s t damage o r p e r i s h a b i l i t y . One element d e l a y i n g t h e more w i d e s p r e a d a d o p t i o n  of a i r f r e i g h t  i s found i n t h e c o n s e r v a t i v e a t t i t u d e s and h a b i t s o f p o l i c y - m a k i n g cutives.  L i k e any new form o f t r a n s p o r t , a i r f r e i g h t s u f f e r s from i t s  s c e p t i c s and d e t r a c t o r s . of i t . 1  exe-  A l s o , many e x e c u t i v e s have j u s t 'never thought  Many f i r m s a r e i n t h e p o s i t i o n o f b e i n g  i s , a i r f r e i g h t i s u t i l i z e d when a p r o d u c t i o n h e l d up f o r want o f an e s s e n t i a l p r o d u c t i o n  'emergency u s e r s ' — t h a t  l i n e i s i n danger o f b e i n g  component, o r an e x p e n s i v e  machine i s o f f t h e l i n e due t o f a i l u r e o f a p a r t t h a t i s u n a v a i l a b l e locally. A i r f r e i g h t i s p a r t i c u l a r l y advantageous f o r l a r g e s h i p p e r s o f s m a l l u n i t s , a market p r a c t i c a l l y abandoned by r a i l and r o a d  carriers.  15 In f a c t : Some s u c c e s s f u l companies, m a r k e t i n g on a n a t i o n a l s c a l e , o p e r a t e w i t h o u t any warehouses. These companies s e l l such d i v e r s e p r o d u c t s as r e p a i r p a r t s f o r equipment and replacement p a r t s f o r the consumer market. I n a l l these companies a i r f r e i g h t i s r e l i e d upon i n whole or i n p a r t as an a l t e r n a t i v e t o warehousing . . . when a i r f r e i g h t i s c o o r d i n a t e d w i t h f a s t motor t r u c k d e l i v e r y , they can r e a c h any customer w i t h i n the U n i t e d S t a t e s w i t h i n one, two, or a t the most t h r e e days . ... . ^  (c) G e n e r a l e f f e c t s on i n d u s t r i a l l o c a t i o n T h i s i s a r a t h e r unknown q u a n t i t y at t h i s t i m e — f u r t h e r which i s the aim of t h i s paper.  However, i n a few  instances  study of  industrial  l o c a t i o n a l t r e n d s r e l a t e d t o the p r o v i s i o n of a i r f r e i g h t s e r v i c e have been d i s c e r n e d .  Whereas a d i s c u s s i o n of the s p e c i f i c t y p e s of  i n v o l v e d w i l l be r e s e r v e d  f o r C h a p t e r I I I , some g e n e r a l  i l l u s t r a t i o n s are a p p r o p r i a t e  firms  comments  and  here.  In A t l a n t a , Georgia: The a i r cargo i n d u s t r y , s t i l l r e l a t i v e l y young, . i s g r o w i n g ; a number of i n d u s t r i e s i n the a r e a now f i n d i t u s e f u l t o s h i p or r e c e i v e , 'by a i r cargo c a r r i e r , items h a v i n g a h i g h v a l u e t o w e i g h t r a t i o . . .. The o n - s i t e p r o v i s i o n of f a c i l i t i e s f o r the ready t r a n s f e r of goods between t r u c k s and p l a n e s w i l l encourage many f i r m s t o l o c a t e i n t h i s p o r t i o n of the m e t r o p o l i t a n r e g i o n , . ... on and a d j o i n i n g the A i r p o r t t h e r e are a r e a s w h i c h , i f t h e y s h o u l d not be r e q u i r e d f o r a i r l i n e s shops and o t h e r e s s e n t i a l a i r p o r t f u n c t i o n s , would be a t t r a c t i v e to a v a r i e t y of i n d u s t r i a l u s e s . ^ [ u n d e r l i n i n g mine] I n P a s s a i c County, New  Jersey:  Through a r e c e n t i n v e s t i g a t i o n of the t y p e s of t r a n s p o r t a t i o n w h i c h s e r v e P a s s a i c County and upon w h i c h i n d u s t r i a l development i s dependent i n v a r y i n g degrees, i t was found t h a t a i r t r a n s p o r t a t i o n i s p l a y i n g an i n c r e a s i n g l y i m p o r t a n t r o l e i n i n d u s t r i a l development. T h i s i s due p r i m a r i l y t o the f a c t t h a t a i r t r a n s p o r t a t i o n f a c i l i t a t e s the r a p i d movement of a i r f r e i g h t and e x e c u t i v e p e r s o n n e l connected w i t h i n d u s t r y and b u s i n e s s . ^ Mr.  R.D.  S i v e r s o n , A m e r i c a n I n d u s t r i a l Development C o u n c i l , has  stated:  I n d u s t r i e s . . . w h i c h might f i n d l o c a t i o n s n e a r an a i r f i e l d d e s i r a b l e are t h o s e s h i p p i n g much pf t h e i r p r o d u c t by a i r , those dependent on r a p i d d e l i v e r y of components or replacement p a r t s , or those whose  16 executives Mr. M.D.  must t r a v e l a g r e a t  Peach, New  ing general  deal.^  E n g l a n d C o u n c i l f o r Economic Development, a f t e r  express-  s c e p t i c i s m about a i r p o r t s as a t t r a c t i v e f o r c e s f o r i n d u s t r i a l  l o c a t i o n , except f o r a v i a t i o n i n d u s t r y , s t a t e d that: The o n l y o t h e r s t r o n g [ l o c a t i o n a l ] a p p e a l would be d i r e c t a c c e s s f o r e i t h e r emergency or r e g u l a r shipment by a i r or the use of company p l a n e s ... . . Mr.  T. J . H a r r i s , manager of A i r f r e i g h t S a l e s , of A m e r i c a n A i r l i n e s ,  r e l a t e s h i s sales discourse  to i n d u s t r i a l l o c a t i o n .  He  states that i f a  f i r m p r e s e n t l y makes s u b s t a n t i a l shipments by a i r , or i s a n t i c i p a t i n g f u t u r e e x t e n s i v e use  of a i r f r e i g h t , t h a t t h i s use  c o n s i d e r a t i o n i n the l o c a t i o n of a new  plant s i t e .  s h o u l d be a major H i s argument i s as  presented e a r l i e r i n t h i s s e c t i o n — t h a t i f o v e r a l l d i s t r i b u t i o n costs considered  together with production  the s u i t a b i l i t y of a new use  of a i r f r e i g h t .  c o s t s , and w e i g h t f a c t o r s are  applied,  l o c a t i o n can be a l t e r e d by the i n t r o d u c t i o n  F o r example, i f t r u c k t r a n s p o r t were t o be  the s u i t a b i l i t y of a l o c a t i o n may  are  and  employed,  be as d e r i v e d i n T a b l e 1 below.  However,  i f a i r f r e i g h t were to be used, the a l t e r a t i o n of weight f a c t o r s would change the s u i t a b i l i t y of the p r e v i o u s The  l o c a t i o n , as i n d i c a t e d i n T a b l e  s i g n i f i c a n c e of t h i s a l t e r a t i o n of w e i g h t f a c t o r s f o r i n d u s t r i a l  s e l e c t i o n i n the p r o x i m i t y of a major a i r p o r t i s o b v i o u s .  2.  site  17  TABLE 1 INDUSTRIAL LOCATION EMPLOYING TRUCK TRANSPORTATION  Grades  Factors  Weight  Labour Materials P l a n t Overhead Transportation Markets  30 20 15 15 20  Totals  100  Appraisal Figures  3  Location  Location  X  Y  Z  70 50 50 60 25  40 85 90 50 40  40 60 70 85 40  X  Y  2100 1000 750 900 500  1200 1700 1350 750 800  1200 1200 1050 1275 800  •5200  5800  5525  Z  Numbers r e p r e s e n t t h e s u i t a b i l i t y w e i g h t i n g s a s s i g n e d by t h e f i r m to each l o c a t i o n f o r each F a c t o r . Weight x Grade e q u a l s t h e A p p r a i s a l F i g u r e f o r each L o c a t i o n and F a c t o r . A d d i t i o n o f A p p r a i s a l f i g u r e s f o r each L o c a t i o n g i v e s i t s r e l a t i v e suitability. Thus l o c a t i o n 'Y' i s t h e most s u i t a b l e .  18  TABLE 2 INDUSTRIAL LOCATION EMPLOYING AIR TRANSPORTATION  Grades  Factors  Labour Materials P l a n t overhead Transportation Markets Totals  Weight  30 20 10 25 15  Appraisal Figures  ^[Location  Location  X  Y  Z  70 50 50 60 25  40 85 90 50 40  40 60 70 85 40  100  L o c a t i o n Z i s now t h e most s u i t a b l e .  X  Y  2100 1000 500 1500 375  1200 1700 900 1250 600  1200 1200 700 2150 600  5475  5650  5850  Z  19 B..  A i r t r a v e l f o r corporate  personnel  (a) B e n e f i t s f o r e x e c u t i v e s and s a l e s  personnel  Today t h e p r e f e r r e d form o f l o n g d i s t a n c e b u s i n e s s t r a n s p o r t a t i o n i s by a i r . Moreover, as s u r f a c e t r a n s p o r t a t i o n s e r v i c e s i n c r e a s e i n c o s t , or decrease i n a v a i l a b i l i t y and/or q u a l i t y o f s e r v i c e , a i r t r a n s p o r t becomes more d e s i r a b l e f o r s h o r t e r d i s t a n c e s . desired quality.  Speed i s becoming t h e most  As t h e d i s t a n c e t o be t r a v e l l e d i n c r e a s e s , and the c o s t  between v a r i o u s forms o f t r a n s p o r t a t i o n d e c r e a s e s , importance.  speed i n c r e a s e s i n  Because o f t h i s , and t h e convenience o f f e r e d , i n d u s t r y i s  u s i n g t h e a i r c r a f t as a b u s i n e s s  tool.  I n d u s t r y i s d e c e n t r a l i z i n g and i s u s i n g t h e a i r p l a n e as a means o f k n i t t i n g t o g e t h e r t h e home o f f i c e , b r a n c h p l a n t s , warehouses, and area headquarters.^ Thus, b u s i n e s s  and i n d u s t r y a r e a b l e b o t h t o broaden t h e g e o g r a p h i c  scope o f t h e i r o p e r a t i o n s and t o enhance t h e m o b i l i t y o f m a r k e t i n g n e l , thereby  i n c r e a s i n g s a l e s and d i s t r i b u t i o n .  person-  The r e d u c t i o n o f c o s t s by  the i n c r e a s e d s c a l e o f o p e r a t i o n s and t h e g r e a t e r e f f e c t i v e n e s s and e f f i c i e n c y o f e x e c u t i v e s i s o f t e n passed on t o t h e consumer. Much e x p a n s i o n and d e c e n t r a l i z a t i o n t h r o u g h i n c r e a s e d m o b i l i t y has been made p o s s i b l e by t h e c o r p o r a t e ownership o f a i r c r a f t . l a r g e c o r p o r a t i o n s t h i s has become an i n d i s p e n s a b l e b u s i n e s s a v e r y l a r g e element i n k e e p i n g  up w i t h t h e c o m p e t i t i o n .  F o r most  a s s e t , and  Use o f these  a i r c r a f t i n b u s i n e s s and i n d u s t r y more t h a n doubled i n t h e p e r i o d from 14 1949  t o 1959  (26,000 b u s i n e s s a i r c r a f t were i n s e r v i c e i n 1958 (USA),  5,000 o f these b e i n g added i n 1957 ^ ) as more c o r p o r a t i o n s and p r o f e s s i o n a l people found.tliem n e c e s s a r y  and l a r g e r , f a s t e r and more e f f i c i e n t  a i r c r a f t became a v a i l a b l e . T h e i r use has now r e a c h e d such p r o p o r t i o n s  20 t h a t s e v e r a l A m e r i c a n c o r p o r a t i o n s o p e r a t e more a i r c r a f t than a r e owned by s e v e r a l o f t h e i n d i v i d u a l  (b) E f f e c t on i n d u s t r i a l  airlines!  location  Some g e n e r a l statements  a r e mentioned here t o i l l u s t r a t e t h e  e f f e c t s o f c o r p o r a t e a i r t r a v e l on i n d u s t r i a l l o c a t i o n .  Some f i r m s have  based v i r t u a l l y t h e i r e n t i r e emergency d i s t r i b u t i o n system and s a l e s and e x e c u t i v e v i s i t s on t h e use o f t h e i r a i r c r a f t .  F o r example:  I n c r e a s e d e x e c u t i v e f l y i n g and t h e r e s u l t a n t i n t e r e s t i n p l a n t l o c a t i o n a d j a c e n t t o a i r p o r t s , i s seen by many as ' b r i n g i n g back t h e p e r s o n a l t o u c h i n b u s i n e s s on a v a s t s c a l e . ' E x e c u t i v e f l y i n g i s c o n s i d e r e d so i m p o r t a n t t o t h e conduct o f U p r e s s i t P r o d u c t s Corporat i o n s ' b u s i n e s s t h a t t h e company r e c e n t l y r e l o c a t e d i t s h e a d q u a r t e r s from t h e h e a r t o f Manhattan t o a new b u i l d i n g on t h e edge o f t h e Danbury, Conn, a i r p o r t . 1 0  In  general: An i n c r e a s i n g number o f f i r m s o t h e r than those engaged i n making a i r c r a f t are studying the p o s s i b i l i t y of l o c a t i n g p l a n t s a t a i r p o r t s i t e s where t h e company p l a n e c a n l i t e r a l l y be p a r k e d a t t h e f r o n t door. 1 7  1  This r e - i n t r o d u c t i o n of the 'personal touch' i n business  dealings  i s one o f t h e p r i m a r y f a c t o r s i n t h e f a v o u r o f c o r p o r a t e a i r c r a f t .  In  a d d i t i o n , p l a n n i n g , o p e r a t i n g , and s e l l i n g i d e a s can be communicated and i n t e r c h a n g e d more e f f e c t i v e l y through p e r s o n a l c o n t a c t . t i v e management and  However, execu-  s u p e r v i s o r y p e r s o n n e l cannot a f f o r d t o be away from  the g e n e r a l o f f i c e f o r l o n g p e r i o d s .  The f l e x i b i l i t y  possession of a q u i c k l y accessible,; comfortable,  enjoyed by t h e  r a p i d , and p e r s o n a l  means o f a t t a i n i n g these two g o a l s , i s c o n s i d e r a b l e .  CHAPTER I I I  FACTORS CONTRIBUTING TOWARDS AIRPORT INDUSTRIAL LOCATION - EXAMPLES OF SUCH LOCATION  A.  A i r F r e i g h t - commodities most c a r r i e d I n g e n e r a l , the m a j o r i t y o f goods s h i p p e d by a i r f r e i g h t a r e those  of s m a l l s i z e and h i g h q u a l i t y . equipment,  These now  i n c l u d e i n d u s t r i a l and  a u t o m o b i l e p a r t s and a c c e s s o r i e s , newspapers,  and drugs, t o name a few.  electrical  advertising  copy,  T a b l e 3 i l l u s t r a t e s the emphasis on such h i g h  q u a l i t y goods i n the break-down of a i r f r e i g h t s h i p p e d t h r o u g h the  New  Y o r k r e g i o n d u r i n g 1950. A l t h o u g h the d a t a f o r T a b l e 3 i s t w e l v e y e a r s o l d , the t y p e of cargo c a r r i e d , and p e r c e n t a g e o f t o t a l r e g i s t e r e d f o r h i g h l y products are s i g n i f i c a n t .  manufactured  The type of cargo r e f l e c t s t h e r e g i o n a l economy  - New Y o r k b e i n g the garment c e n t r e f o r the U n i t e d S t a t e s as w e l l as a p r o d u c e r of h i g h l y m a n u f a c t u r e d goods.  The s i z e of the consumer market  c r e a t e s a n e c e s s i t y f o r t h e import of goods t h a t a r e not m a n u f a c t u r e d locally,  such as a u t o m o b i l e p a r t s .  The low v a l u e f o r p e r i s h a b l e s i s of  n o t e ; however t h i s may be r e s t r i c t e d t o the New Y o r k R e g i o n .  For  example,  i n F r e s n o , C a l i f o r n i a a i r f r e i g h t i s seen as a s i g n i f i c a n t f a c t o r i n the expanding r e g i o n a l economy, e s p e c i a l l y f o r h i g h l y p e r i s h a b l e  agricultural  products. Such d i r e c t f i e l d - t o - m a r k e t a i r f r e i g h t t r a n s p o r t a t i o n i s h i g h l y ^ d e s i r a b l e f o r many t y p e s of produce grown i n the San J o a q u i n V a l l e y .  21  22  TABLE 3 AIR  FREIGHT--NEW YORK REGION--1950  Category  Amount (pounds)  Percentage of T o t a l  M a c h i n e r y and v e h i c l e s , i n c l u d i n g TV s e t s , b o l t s , screws, n u t s , e l e c t r i c a l and e l e c t r o n i c p a r t s , r a d i o and TV p a r t s , hardware and hand t o o l s , e l e c t r i c a l appliances, telephone equipment, m i s c e l l a n e o u s machinery  1,771,935  31  T e x t i l e f a b r i c s , manufacturers, and w e a r i n g a p p a r e l , i n c l u d i n g dry goods, c l o t h i n g and k n i t t e d goods, shoes and p a r t s  1,652,914  29  Wood, paper, and p l a s t i c s  873,050  15  M i s c e l l a n e o u s , such as b o t t l e caps, can t o p s , t o y s and novelties, personal effects  459,879  8  Chemical products  305,757  5.5  Perishables  291,511  5  M e t a l s and m a n u f a c t u r e s  182,926  3  A n i m a l and v e g e t a b l e ,  152,950  2.5  Non-metallic minerals  34,402  0.6  Edible, not perishable  13,687  0.25  1  Total  inedible  5,739,010  100  23 A n o t h e r r e g i o n a l example o r i g i n a t e s from S o u t h e r n C a l i f o r n i a where i t was observed that: W i t h r e g a r d t o a i r f r e i g h t , t h e r e l a t i v e dependence o f d i f f e r e n t t y p e s o f b u s i n e s s e s a l s o v a r i e s g r e a t l y . F i r m s s h i p p i n g commodities w h i c h must g e t t o t h e i r d e s t i n a t i o n r a p i d l y a r e p a r t i c u l a r l y i n t e r e s t e d i n a i r f r e i g h t . Among such commodities a r e h i g h f a s h i o n c l o t h i n g , f l o w e r s , f i l m s , c e r t a i n p e r i s h a b l e foods, pharmaceuticals, e l e c t r o n i c equipment, and o t h e r i t e m s o f r e l a t i v e l y h i g h v a l u e and h i g h d e n s i t y . 3 i R e g a r d l e s s o f r e g i o n , t h e commodities most f r e q u e n t l y s h i p p e d by a i r f r e i g h t i n t h e USA (1955) a r e p r e s e n t e d i n T a b l e 4.  Commodities a r e  l i s t e d i n o r d e r o f volume in^pounds f o r t h e t h r e e main domestic t r u n k l i n e s and one a l l - c a r g o c a r r i e r .  The dominance o f h i g h l y manufactured goods i s  clear. S i m i l a r i t y t o t h e 1950 f i g u r e s f o r the New Y o r k Region i s a p p a r e n t . An o b s e r v a t i o n can t h e r e f o r e be made t h a t a i r f r e i g h t may be o f p r i m a r y c o n c e r n i n m e t r o p o l i t a n a r e a s where l a r g e s c a l e h i g h q u a l i t y m a n u f a c t u r i n g i s c a r r i e d out.  However, o b v i o u s l y such p r o d u c t s must have a market o t h e r  than i n t h e p r o d u c t i o n c e n t r e , o t h e r w i s e no s h i p p i n g would be needed i n t h e f i r s t place.  I t f o l l o w s t h e r e f o r e , t h a t m e t r o p o l i t a n a r e a s which do n o t  p o s s e s s a h i g h l y s o p h i s t i c a t e d i n d u s t r i a l base, b u t w h i c h n e v e r t h e l e s s support a l a r g e p o p u l a t i o n , must be t h e r e c i p i e n t s o f such goods. example,  For  a u t o m o b i l e p a r t s , complex e l e c t r o n i c equipment, machine p a r t s ,  and drugs a r e f a b r i c a t e d i n q u a n t i t y i n s p e c i f i c r e g i o n s o f t h e USA and Canada.  Consumers, however, a r e l o c a t e d throughout t h e e n t i r e C o n t i n e n t ,  n e c e s s i t a t i n g d i s t r i b u t i v e and secondary i n d u s t r i e s o f one form o r another.  Thus f o r purposes o f t h i s paper, and a proposed case s t u d y o f  a noiv^major i n d u s t r i a l m e t r o p o l i t a n a r e a i n p a r t i c u l a r , i n v e s t i g a t i o n o f i n d u s t r i e s o f assembly and r e - d i s t r i b u t i o n , t e r t i a r y i n d u s t r i e s , and secondary m a n u f a c t u r i n g may be t h e most f r u i t f u l f o r a p p l i c a t i o n o f t h e  24  TABLE 4 COMMODITIES MOST FREQUENTLY SHIPPED BY AIR FREIGHT IN THE UNITED STATES—1955  Order o f Importance 1 2 3 4 5 6 7 8 9 10  .................................  .......................... ;..  ,  Commodities A u t o m o b i l e p a r t s and a c c e s s o r i e s Machinery E l e c t r i c a l equipment Cut f l o w e r s Wearing a p p a r e l Machine p a r t s P r i n t e d matter Films A i r c r a f t parts or accessories Drugs and b i o l o g i c a l s  25 hypothesis.  B,.  B u s i n e s s f l y i n g - i n d u s t r i e s by t r a v e l d e s i r e S e v e r a l f a c t o r s e n t e r i n t o the degree of b u s i n e s s a i r t r a v e l i n  a c i t y or r e g i o n .  Geographic r e l a t i o n s h i p t o o t h e r c i t i e s ,  corporate  s t r u c t u r e such as b r a n c h p l a n t l o c a t i o n s , and i n t e g r a t i v e arrangements, and s i z e of the market are some of the more o b v i o u s of t h e s e . the New  In addition,  Y o r k P o r t A u t h o r i t y found t h a t t h e r e are t h r e e c o n t r o l l i n g compo-  n e n t s i n b u s i n e s s a i r t r a v e l - o c c u p a t i o n , i n d u s t r y type, and income."' Thus, f o r example I n the T u l s a , Oklahoma m e t r o p o l i t a n a r e a , the f a c t t h a t b u s i n e s s t r a v e l i s t w i c e the n a t i o n a l per c a p i t a average can be  attributed  to: I ) A d u l t s i n w h i t e - c o l l a r o c c u p a t i o n s t r a v e l most f r e q u e n t l y and comprise 38% of a l l a i r l i n e p a s s e n g e r s . 52% of T u l s a County's 1950 l a b o u r f o r c e were " w h i t e - c o l l a r " workers, w h i c h i s unusually high; i i ) People who take b u s i n e s s t r i p s tend t o be c o n c e n t r a t e d i n m a n u f a c t u r i n g and b u s i n e s s and p r o f e s s i o n a l o c c u p a t i o n s of w h i c h T u l s a has a h i g h p r o p o r t i o n ; i i i ) A p p r o x i m a t e l y 74%, of passenger t r i p s a r e by people w i t h 1950 f a m i l y incomes of $6,000 o r o v e r . An u n u s u a l l y h i g h percentage of T u l s a County f a m i l i e s , 39% earned $6,000 o r over i n 1957. 6  The A m e r i c a n C i v i l A v i a t i o n A d m i n i s t r a t i o n (now  Federal Aviation  - A d m i n i s t r a t i o n ) i n t h e i r study Economic C h a r a c t e r of Communities (1948) found t h a t the volume of a i r t r a v e l a p a r t i c u l a r community can)be t o generate  expected  i s a f u n c t i o n of the economic c h a r a c t e r o f t h a t community.  A s c o r i n g system was  d e r i v e d , c l a s s i f y i n g the f i f t y l a r g e s t m e t r o p o l i t a n  d i s t r i c t s i n t o f o u r economic t y p e s .  The  average number of  passengers per 10,000 p o p u l a t i o n (July-September, relationship.  1947)  airline  shows t h i s  26 I n s t i t u t i o n a l C i t y Type (that i s , regional centre, c u l t u r a l , f i n a n c i a l , government)  1,213  M a r k e t i n g C e n t r e C i t y Type ( t h a t i s , r e g i o n a l assembly d i s t r i b u t i o n , and m a n u f a c t u r i n g )  1,207  B a l a n c e d C i t y Type (that i s , s e l f - s u f f i c i e n t )  398  I n d u s t r i a l C i t y Type ( t h a t i s , dependent on one o r few l a r g e i n d u s t r i e s )  223  7  T h i s r e l a t i o n s h i p a l s o h e l d t r u e f o r t h e ownership o f c o r p o r a t e aircraft. To p r o v i d e  f u r t h e r i n s i g h t i n t o t h e dependency o f v a r i o u s i n d u s t r i e s  on a i r t r a v e l , a r e c e n t  study o f t h e domestic a i r passenger market i n t h e  U n i t e d S t a t e s c l a s s i f i e d the l a b o u r f o r c e i n t o t h r e e c a t e g o r i e s ,  'high , 1  ,'medium , and 'low' a i r t r a v e l i n d u s t r i e s by degree o f a i r t r a v e l by 1  executive  and s a l e s  personnel.  High T r a v e l /  - manufacturing, mining, business s e r v i c e s ;  Medium T r a v e l - c o n s t r u c t i o n , w h o l e s a l e and r e t a i l , p r o f e s s i o n a l and p e r s o n a l s e r v i c e and f i n a n c e , i n s u r a n c e and r e a l e s t a t e ; Low T r a v e l  - amusement and r e c r e a t i o n , r e p a i r s e r v i c e , a g r i c u l t u r e , f o r e s t r y and f i s h i n g , t r a n s p o r t a t i o n , communications, and u t i l i t i e s . ^  I n a n o t h e r study i t was s i m i l a r l y found t h a t : Types of b u s i n e s s e s w h i c h a r e p a r t i c u l a r l y dependent upon a i r passenger t r a n s p o r t a t i o n i n c l u d e m a n u f a c t u r e r s of m i l i t a r y p r o d u c t s such as m i s s i l e s and a i r c r a f t , o r t h e i r components. F i r m s engaged i n r e s e a r c h and development g e n e r a l l y r e q u i r e c o n s i d e r a b l e a i r t r a v e l f o r t h e i r personnel. Other b u s i n e s s e s r e q u i r i n g e x t e n s i v e p e r s o n n e l c o n t a c t and t h u s a i r t r a v e l i n c l u d e those f i r m s p e r f o r m i n g b u s i n e s s c o n s u l t i n g s e r v i c e s and f i r m s w i t h e x t e n s i v e m a r k e t i n g a c t i v i t i e s o r w i d e l y d i s persed production f a c i l i t i e s . ^ I t i s o f n o t e t h a t t h e s e s t u d i e s a r e i n agreement, t h e ' h i g h ' and  27 'medium' t r a v e l i n d u s t r i e s n o r m a l l y c o n c e n t r a t i n g i n ' I n s t i t u t i o n a l ' or 'Marketing' c e n t r e s . force by  The  degree t h a t the  l o c a l economy and  the  labour  are devoted towards the more f a v o u r a b l e a i r - t r a v e l i n d u s t r i e s  i m p l i c a t i o n , i n d i c a t e the p o t e n t i a l r e l e v a n t  a p p l i c a t i o n of the  could, hypothe-  sis .  C.  Airport  l o c a t i o n of  industry  (a) S p e c i f i c examples - l o c a t i o n and  intended  F i r m s w h i c h have a c t u a l l y l o c a t e d  location  i n the v i c i n i t y of  c o r r e s p o n d c l o s e l y to those p r o d u c i n g or d i s t r i b u t i n g the air  f r e i g h t , as o u t l i n e d  i n P a r t A of t h i s C h a p t e r .  airports  items s h i p p e d  by  S i m i l a r l y , some 'high  t r a v e l i n d u s t r i e s ' of P a r t B have been shown to p r e f e r  airport  location.  I t i s s i g n i f i c a n t t h a t the m a n u f a c t u r i n g f i r m s are heavy u s e r s of b o t h a i r f r e i g h t ( c o m p a r a t i v e l y speaking) and f o r a i r p o r t l o c a t i o n may ,and  air travel.  therefore e x i s t .  A double  Warehouses, t r u c k  incentive terminals,  o t h e r d i s t r i b u t i o n f a c i l i t i e s have shown a tendency towards a i r p o r t  l o c a t i o n as the need to i n c r e a s e h a n d l i n g and grown a l o n g w i t h the use  of a i r f r e i g h t .  t r i b u t i v e type of i n d u s t r y g i v e n the  distribution efficiency  It i s anticipated  c o u l d be of most r e l e v a n c e to the  has  that t h i s d i s hypothesis,  c h a r a c t e r i s t i c s of a Vancouver M e t r o p o l i t a n A r e a case s t u d y .  T h i s w i l l be examined i n more d e t a i l i n C h a p t e r  IV.  Some i l l u s t r a t i o n s of i n d u s t r i a l p r e f e r e n c e s f o r s i t e s near p o r t s are of n o t e . B o s t o n ( w h i c h was  For example, d i s c u s s i o n  study around  concerned w i t h the magnetic e f f e c t of t h i s highway f o r  i n d u s t r i a l location) a i r p o r t s are  of the Route 128  air-  r a r e l y t a k e s i n t o account t h a t  s t r a t e g i c a l l y located  a l o n g the  V I  Route:  three good-quality  28 A l l t h e s e a i r p o r t s have a l r e a d y e x e r t e d more i n f l u e n c e than i s g e n e r a l l y r e c o g n i z e d on t h e i n d u s t r i a l e x p a n s i o n i n t h e p e r i m e t e r a r e a . F o r i n s t a n c e , when RCA announced i t s s e l e c t i o n o f a s i t e on Route 128 f o r t h e c o n s t r u c t i o n o f i t s new $9,000,000 l a b , i t was s t a t e d t h a t a d e t e r m i n i n g f a c t o r i n the s i t e s e l e c t i o n was i t s p r o x i m i t y t o B e d f o r d A i r p o r t . Or, t o s t a t e a r e v e r s e case, a c e r t a i n town n e a r t h e a i r p o r t l o s t a new p l a n t because the town o f f i c i a l s were n o t aware t h a t B e d f o r d was a n y t h i n g o t h e r than a m i l i t a r y a i r base A® I n o t h e r w i s e s u r p l u s l a n d a r e a s a t a i r f i e l d s such as New Y o r k I n t e r n a t i o n a l , l i g h t i n d u s t r y has been encouraged t o l o c a t e on a l e a s e basis. the  The t y p e s o f i n d u s t r y t h a t have chosen t o do so l e n d support t o  hypothesis. Today our land-use t e n a n t s i n c l u d e such l i g h t i n d u s t r y as Greer H y d r a u l i c s , T r y e s s e r Copper Company, and Cummins D i e s e l Company. U s u a l l y our t e n a n t companies have use f o r t h e c o n v e n i e n t l y l o c a t e d a i r cargo s e r v i c e . H A g a i n i n t h e New Y o r k R e g i o n , i n a study t o determine t h e e f f e c t s  and  t h e l o c a t i o n o f a new a i r p o r t . The t y p e s o f i n d u s t r i e s a t t r a c t e d t o t h e a r e a i n response t o t h e a i r p o r t development would i n c l u d e l i g h t m a n u f a c t u r i n g and d i s t r i b u t i o n f a c i l i t i e s ; p r o c e s s i n g o p e r a t i o n s , r e s e a r c h u n i t s and s i m i l a r a c t i v i t i e s . .. ..-12 I n d i s c u s s i n g t h e t y p e s o f i n d u s t r i e s l i k e l y t o be a t t r a c t e d by t h e  c o n s t r u c t i o n o f a new a i r p o r t i n P a s s a i c County, New J e r s e y , cluded  i t was con-  that:  .... i n d u s t r i e s engaged i n t h e manufacture o f such items as machine p a r t s would more than l i k e l y be drawn t o t h e v i c i n i t y o f such an a i r p o r t . T h i s type o f i n d u s t r y most f r e q u e n t l y make emergency s h i p ments o f p a r t s t o v a r i o u s s e c t i o n s o f t h e c o u n t r y , and o f t e n does so i n i t s own a i r c r a f t . 1 3 [ u n d e r l i n i n g mine] I t was t h e n s t a t e d c a t e g o r i c a l l y t h a t : ... . Those i n d u s t r i e s w h i c h can be e x p e c t e d t o l o c a t e i n i n d u s t r i a l a r e a s i m m e d i a t e l y a d j a c e n t t o o r i n c l o s e p r o x i m i t y t o an a i r p o r t a r e those w h i c h .. . . depend l a r g e l y o n \ a i r t r a n s p o r t a t i o n as a means o f e x e c u t i v e and p e r s o n n e l t r a v e l ... . a l s o i n c l u d e d i n t h i s group a r e those i n d u s t r i e s w h i c h manufacture i t e m s , t h e v a l u e o f which w a r r a n t s shipment by a i r , such as v i t a l machine replacement p a r t s and r a d i o equipment. R e s e a r c h and e x p e r i m e n t a l l a b o r a t o r i e s can a l s o be ex-  29 p e c t e d t o l o c a t e i n the v i c i n i t y of an a i r p o r t due o f f e r e d t o key personnel.^ An  i l l u s t r a t i o n of t h i s g e n e r a l  reference  t o the  convenience  can be t a k e n from Great  B r i t a i n , where, i n a l e t t e r t o the London Times, the managing d i r e c t o r of an e l e c t r o n i c s f i r m p r e s e n t e d h i s arguments a g a i n s t f i r m from London t o a d e p r e s s e d a r e a i n the  the r e l o c a t i o n of h i s  north.  A p a r t from the overwhelming problem of p e r s o n n e l t h e r e are f a c t o r s which t i e l u s to g r e a t e r London:  other  (1)  Most of our equipment i s s h i p p e d by a i r . We average f o u r shipments per day from London A i r p o r t , where we are a b l e t o o b t a i n a i r f r e i g h t e v e r y n i g h t t o almost any c o u n t r y i n the w o r l d . .. ..  (4)  Our s a l e s and s e r v i c e s t a f f f l y out of London A i r p o r t a t an average r a t e of 22/week, m a i n l y t o d e s t i n a t i o n s i n Europe. T h i s good s e r v i c e i s much a p p r e c i a t e d by our o v e r s e a s customers  A l t h o u g h t h i s i s an i l l u s t r a t i o n of a i r p o r t - d e p e n d e n c y on the  regional  1 s c a l e ( r a t h e r t h a n a i r p o r t s i t e l o c a t i o n ) the arguments put  forward  are  relevant. The  impact of the a i r p o r t on the l o c a t i o n of d i s t r i b u t i v e i n d u s t r i e s  i s of s u f f i c i e n t importance t o w a r r a n t s p e c i a l a t t e n t i o n .  T h i s i s i n con-  n e c t i o n w i t h some o b s e r v a t i o n s  That i s , l a r g e  i n P a r t A of t h i s C h a p t e r .  s c a l e manufacture of s o p h i s t i c a t e d p r o d u c t s i s c a r r i e d out i n c e r t a i n metropolitan  a r e a s of the USA  regional production  and Canada, w i t h i n the o v e r a l l m a t r i x  and m a r k e t i n g i n t e r - d e p e n d e n c e .  of  For example, i n  T u l s a , Oklahoma the i n d u s t r i e s a n t i c i p a t e d as a r e s u l t of a i r p o r t e x p a n s i o n and  improvement are d i s t r i b u t i v e i n n a t u r e . The c o n s t r u c t i o n of the new T u l s a M u n i c i p a l A i r p o r t t e r m i n a l b u i l d i n g s h o u l d be completed by J a n u a r y , 1962, f u r t h e r expanding a v i a t i o n employment. Other a l l i e d i n d u s t r y and commerce e x p a n s i o n s h o u l d f o l l o w - .... w h o l e s a l e d i s t r i b u t i o n c e n t r e , a i r f r e i g h t t e r m i n a l , warehousi n g , ...... t r u c k i n g t e r m i n a l s - t o mention a.few.16 The  demand f o r a i r f r e i g h t t e r m i n a l s has  r e s u l t e d from the  increasing  30 u t i l i z a t i o n o f a i r f r e i g h t and a need f o r b e t t e r d i s t r i b u t i o n Specialized operating and  techniques,  loading platforms,  ' t r a n s i t sheds' a r e r e q u i r e d i n o r d e r  to expedite  facilities.  ramps, c o n v e y o r s , the trans-shipment  process i n a fashion s i m i l a r t o r a i l or dockside f r e i g h t terminals.  It  c o u l d be e x p e c t e d , t h e r e f o r e , t h a t d i s t r i b u t i o n i n d u s t r i e s such as w h o l e s a l e d i s t r i b u t i o n and warehousing w h i c h e x i s t i n t h e v i c i n i t y o f these o l d e r t e r m i n a l s c o u l d be e x p e c t e d t o l o c a t e n e a r t h e a i r - f r e i g h t t e r m i n a l . type o f i n d u s t r i a l use i s b e i n g  This  d e v e l o p e d a t New Y o r k I n t e r n a t i o n a l A i r p o r t .  . ... development o f f o u r b u i l d i n g s , p r o v i d i n g d i r e c t t r a n s f e r o f cargo from a i r p l a n e t o t r u c k , was r e c e n t l y completed t o meet t h e demands o f t h e r a p i d l y growing volume o f a i r c a r g o . The b u i l d i n g s are l e a s e d i n s e c t i o n s , so t h a t each a i r l i n e has i t s own p l a n e apron, t r u c k apron, and employee p a r k i n g space. The f i f t h b u i l d i n g i n t h e c e n t r e o f t h e development i s a cargo s e r v i c e b u i l d i n g , p r o v i d i n g temporary warehousing and s h i p p i n g s e r v i c e s . 1 7 The  development p l a n f o r a new a i r p o r t i n t h e New Y o r k R e g i o n  a n t i c i p a t e s t h e need f o r e n t i r e f r e i g h t a r e a s and s t a t e s t h a t p r o v i s i o n must be made f o r a l a r g e number o f t r u c k s and a s s o c i a t e d f a c i l i t i e s .  This  development i s n o t r e s t r i c t e d t o N o r t h A m e r i c a , f o r example t h e p l a n f o r 18 O r l y A i r p o r t a t P a r i s i n c l u d e s : "One o r s e v e r a l a i r f r e i g h t s t a t i o n s " . The  demand by i n d u s t r y f o r a i r p o r t space has t r i g g e r e d t h e m u l t i -  p l i c i t y o f p l a n n e d i n d u s t r i a l d i s t r i c t s mentioned i n Chapter I B ( c ) . I n f a c t , one o f t h e most common problems f a c i n g t h e a i r p o r t owner o r o p e r a t o r today a r i s e s from: ... .. t h e need t o f i n d space t o accomodate a new i n d u s t r y w h i c h d e s i r e s an a i r p o r t s i t e i n o r d e r t o s i m p l i f y a i r shipment o f p r o d u c t s o r t o f a c i l i t a t e t h e a i r t r a v e l o f company e x e c u t i v e s o r t e c h n i c i a n s by a i r l i n e o r c o r p o r a t e a i r c r a f t . . ..19 (b) I n d u s t r i e s s u i t a b l e f o r study From t h e f o r e g o i n g  d i s c u s s i o n s e v e r a l i n d u s t r i a l c a t e g o r i e s have  been mentioned, e i t h e r i n c o n n e c t i o n  with a i r f r e i g h t , a i r t r a v e l of  p e r s o n n e l , or a i r p o r t i n d u s t r i a l l o c a t i o n .  I n Chapter  I I , the a t t r a c t i o n s  of a i r f r e i g h t and the c o r p o r a t e a i r c r a f t were i l l u s t r a t e d , and t h e g e n e r a l a p p l i c a b i l i t y to industry discussed.  A t t h i s stage a t e n t a t i v e l i s t  can  be f o r m u l a t e d of i n d u s t r i a l f i r m s s u i t a b l e f o r a p p l i c a t i o n of the h y p o t h e s i s i n a case  study.  S e v e r a l o t h e r c o n d i t i o n s a r e assumed t o be o p e r a t i v e i n o r d e r t h a t the d e s i r a b i l i t y of a i r p o r t - a r e a l o c a t i o n can be i s o l a t e d .  These i n c l u d e :  i ) S u i t a b l e l a n d a t a c o m p e t i t i v e p r i c e must be a v a i l a b l e at o r c l o s e t o the a i r p o r t s i t e . " S u i t a b l e \ i n c l u d e s f a c t o r s such as a r e a , d r a i n a g e , f l a t n e s s , and b e a r i n g q u a l i t i e s ; i i ) Good q u a l i t y l i m i t e d - a c c e s s highways must connect the a i r p o r t a r e a t o the major t r a f f i c g e n e r a t o r s of the m e t r o p o l i t a n a r e a . R a i l f a c i l i t i e s must be a v a i l a b l e i f so d e s i r e d ; i i i ) Market f a c t o r s must i n d i c a t e the d e s i r a b i l i t y of p l a n t expans i o n , r e - l o c a t i o n , or c r e a t i o n ; i v ) A i r p o r t and M u n i c i p a l z o n i n g and development r e g u l a t i o n s must p e r m i t the type of development a n t i c i p a t e d ; v) S e r v i c e s such as water, sewer, and storm d r a i n a g e must be a v a i l a b l e at reasonable c o s t ; v i ) Other f a c t o r s o f p r o d u c t i o n must be a v a i l a b l e on an economic basis.; W i t h these c o n d i t i o n s i n e f f e c t , and d i s r e g a r d i n g f o r the moment r e g i o n a l d i f f e r e n c e s i n economic s t r u c t u r e , an amalgamated comprehensive l i s t of p o t e n t i a l f i r m s would  comprise:  i ) M a n u f a c t u r e r s o f h i g h q u a l i t y : machinery and p a r t s , t o o l s , e l e c t r o n i c a p p a r a t u s , consumer goods such as e l e c t r i c a l a p p l i a n c e s , automobile and o t h e r v e h i c u l a r components and a c c e s s o r i e s , drugs and c o s m e t i c s , w e a r i n g a p p a r e l , d r y goods, f a b r i c s , shoes, p l a s t i c s and c h e m i c a l s , n e w s p r i n t and o t h e r h i g h q u a l i t y wood p r o d u c t s ; i i ) P r o c e s s e r s of h i g h q u a l i t y merchandise, i n c l u d i n g p r o d u c t s and p e r i s h a b l e i t e m s ;  agricultural  i i i ) T e r t i a r y i n d u s t r i e s such as r e s e a r c h and development laborato r i e s , b u s i n e s s , p r o f e s s i o n a l , and p e r s o n a l s e r v i c e s , l a r g e insurance f i r m s ;  32 i v ) C o n s t r u c t i o n and development f i r m s , e s p e c i a l l y those w i t h o u t s i d e commitments; v) M i n i n g companies, and  mine  services;  v i ) D i s t r i b u t i o n a g e n c i e s f o r the above manufactured goods and p r o c e s s e d m a t e r i a l , p e r i s h a b l e commodities, p r i n t e d m a t t e r and f i l m s ; v i i ) D i s t r i b u t i o n i n d u s t r i e s such as f r e i g h t f o r w a r d i n g companies, w h o l e s a l e a g e n c i e s , w a r e h o u s i n g , t r u c k i n g f i r m s , and f r e i g h t terminals. C h a p t e r IV w i l l be  concerned w i t h the a p p l i c a t i o n of t h i s l i s t  the M e t r o p o l i t a n Vancouver Case Study a r e a , and t i o n of c e r t a i n i n d u s t r y l o c a l economy and  the e l i m i n a t i o n or  t y p e s , g i v e n the c h a r a c t e r i s t i c s and  a i r freight  statistics.  to  elabora-  t r e n d s of  the  CHAPTER IV  SELECTION OF INDUSTRIAL FIRMS FOR STUDY: A VANCOUVER METROPOLITAN AREA CASE STUDY  A.  Methodology I n Chapter I I I , a comprehensive l i s t was  c o m p i l e d of the types of  f i r m s t h a t a r e p o t e n t i a l heavy u s e r s of a i r f r e i g h t or a i r t r a v e l . hypothesis  w i l l now  The  be a p p l i e d to a c r o s s - s e c t i o n of these f i r m s i n a  s e l e c t e d Case Study a r e a .  That i s , an a t t e m p t w i l l be made to d e t e r m i n e  whether the p r e s e n t or a n t i c i p a t e d use of a i r f r e i g h t or c o r p o r a t e  air  t r a v e l by such f i r m s c o u l d induce•them to l o c a t e t h e i r o p e r a t i o n s  close  to a major a i r p o r t . I t i s intended types l i s t e d  t h a t the managers of f i r m s r e p r e s e n t a t i v e of  i n Chapter I I I w i l l be i n t e r v i e w e d  degree of a c c e p t a n c e of the h y p o t h e s i s . teristics  of f a v o u r a b l e  i n order  the  to d e t e r m i n e  the  I n a d d i t i o n , some common c h a r a c -  f i r m s w i l l be a s c e r t a i n e d .  I t may  be f o u n d , f o r  example, t h a t o n l y f i r m s of c e r t a i n t y p e s , s i z e s , or c o r p o r a t e  structure  a r e i n t e r e s t e d i n f u t u r e a i r p o r t l o c a t i o n of t h e i r p l a n t s . However, the l i s t of types of f i r m s as d e r i v e d i n Chapter I I I i s general  and  comprehensive.  I t i s to be e x p e c t e d t h a t the economy of a  s e l e c t e d Case Study A r e a may types l i s t e d  or may  be h e a v i l y b i a s e d  lack certain others.  t e n s i v e m a n u f a c t u r i n g and  towards•certain  For example, New  of  the  York i s an  ex-  d i s t r i b u t i n g a r e a , whereas T u l s a , Oklahoma, or  F r e s n o , C a l i f o r n i a c o u l d be more a p p r o p r i a t e l y termed d i s t r i b u t i o n  33  areas.  34 A l t h o u g h m a n u f a c t u r i n g i s l o c a l l y i m p o r t a n t , c i t i e s such as the l a t t e r  two  do n o t produce a s u f f i c i e n t volume or v a r i e t y o f h i g h l y m a n u f a c t u r e d goods to  s a t i s f y the needs o f t h e i r m e t r o p o l i t a n p o p u l a t i o n s .  Thus, i n these  two c i t i e s f i r m s t h a t d i s t r i b u t e i m p o r t e d manufactured goods may be those most s i g n i f i c a n t f o r the a p p l i c a t i o n o f the h y p o t h e s i s . The l i s t of types of f i r m s as c o l l a t e d i n Chapter I I I would, t h e r e f o r e , r e q u i r e amendment t o e l i m i n a t e some types and emphasize o t h e r s .  Without t h i s  inter-  mediate s t a g e , a Study Group of f i r m s s e l e c t e d f o r i n t e r v i e w s would n o t be r e p r e s e n t a t i v e of the l o c a l economy.  C o n c l u s i o n s from the s t u d y would,  t h e r e f o r e , have l i m i t e d p r a c t i c a l p l a n n i n g v a l u e i n the Case Study A r e a . Because o f convenience f o r the w r i t e r , the Vancouver A r e a has been s e l e c t e d f o r the i n t e n d e d Case Study.  From the above d i s -  c u s s i o n , i t f o l l o w s t h a t an a p p r e c i a t i o n o f the economic of  Metropolitan  characteristics  t h i s A r e a must be g a i n e d b e f o r e a Study Group of f i r m s i s chosen.  The  remainder o f t h i s Chapter i s t h e r e f o r e devoted to c o n s i d e r a t i o n o f : the g e n e r a l o r i e n t a t i o n o f the M e t r o p o l i t a n Vancouver economy; the s t a t u s o f m a n u f a c t u r i n g i n d u s t r y ( I t i s t r e a t e d i n d e t a i l because o f i t s i m p o r t a n t r o l e i n the h y p o t h e s i s ) ; the c h a r a c t e r i s t i c s o f a i r f r e i g h t i n the A r e a ; and the o p p o r t u n i t i e s f o r c o r p o r a t e a i r t r a v e l .  This information w i l l  be  u t i l i z e d to amend the l i s t o f e s t a b l i s h m e n t types p r e s e n t e d a t the end o f Chapter I I I .  I n a d d i t i o n , a 'weight f a c t o r ' w i l l be d e r i v e d f o r each  g e n e r a l 'Category' o f f i r m s , i n accordance w i t h the importance o f each b o t h i n the Case Study A r e a and to the h y p o t h e s i s . A Study Group o f f i r m s , s e l e c t e d from t h i s amended and w e i g h t e d l i s t w i l l be r e p r e s e n t a t i v e o f those f i r m s i n the M e t r o p o l i t a n Vancouver A r e a which c o u l d d e s i r e near Vancouver I n t e r n a t i o n a l A i r p o r t .  location  B.  35 Regional c h a r a c t e r i s t i c s of the M e t r o p o l i t a n Vancouver A r e a  (a) G e n e r a l o r i e n t a t i o n o f t h e economy The M e t r o p o l i t a n Vancouver Area i s s i t u a t e d on the extreme s o u t h w e s t e r n c o a s t o f Canada.  I t I s s e p a r a t e d p h y s i c a l l y from the i n t e r i o r o f  B.C. and Canada by the e x t e n s i v e C o r d i l l e r a n M o u n t a i n C h a i n .  The t h r e e -  q u a r t e r s o f a m i l l i o n p e o p l e i n the M e t r o p o l i t a n A r e a and the s u r r o u n d i n g F r a s e r D e l t a comprise a p p r o x i m a t e l y s i x t y p e r c e n t o f t h e p o p u l a t i o n o f B.C. Vancouver has always been n o t e d as an i m p o r t a n t p o r t , and a n a t u r a l b r e a k - o f - b u l k p o i n t — b o t h f o r t r a d e w i t h the P a c i f i c Rim c o u n t r i e s and f o r the ocean shipment o f low v a l u e , b u l k y cargoes f i r s t i n 1961 among the w o r l d g r a i n - s h i p p i n g p o r t s ) .  (Vancouver  ranked  Because o f h e r  i s o l a t i o n and u n f a v o u r a b l e f r e i g h t r a t e s , Vancouver has never proven  par-  t i c u l a r l y a t t r a c t i v e t o l a r g e c o r p o r a t i o n s t h a t market on a n a t i o n a l o r i n t e r n a t i o n a l b a s i s , a l t h o u g h m a n u f a c t u r i n g has developed market.  f o r the l o c a l  In fact:  Vancouver i s a n a t u r a l b r e a k p o i n t between l a n d and sea communications. B e i n g the terminus f o r two r a i l w a y s and many steamship l i n e s , and w i t h innumerable warehouses and w h o l e s a l e e s t a b l i s h m e n t s , the c i t y i s f u n d a m e n t a l l y , a t r a d e and t r a n s p o r t a t i o n c e n t r e . ... . ^ The d i s t r i b u t i o n o f the l a b o u r f o r c e amongst the v a r i o u s s e c t o r s of  t h e economy r e f l e c t s t o a l a r g e e x t e n t t h e r e g i o n a l economic, s o c i a l ,  and c u l t u r a l c h a r a c t e r i s t i c s .  From T a b l e 5 i t can be seen t h a t the major  f u n c t i o n s o f the r e g i o n a r e t e r t i a r y i n n a t u r e , c o m p r i s i n g d i s t r i b u t i o n and s e r v i c e . subsequent d a t a w i l l  transportation,  M a n u f a c t u r i n g i s a l s o i m p o r t a n t ; however as  show, i t i s n o t as s i g n i f i c a n t t o t h e h y p o t h e s i s as  the employment p e r c e n t a g e  indicates.  36  TABLE 5  PERCENTAGE EMPLOYMENT IN MAJOR INDUSTRY GROUPS: LOWER MAINLAND REGION* (1951-56)  P e r c e n t a g e of Industry  Employment  Groups  Agriculture Extractive Industries (forestry, logging, f i s h i n g , trapping, mining, quarrying) Manufacturing Utilities Construction T r a n s p o r t a t i o n and Communications Trade Finance Services Unclassified Total  1951  1956  4.4  3.5  4.3 24.0 1.1 7.1 10.3 19.2 4.2 24.0 1.4  3.1 22.4 1.2 8.4 10.1 18.4 4.7 26.81.4  100  -  a  100  T h e s e I n d u s t r y Groups r e p r e s e n t the T e r t i a r y Group. I n 1951 t h i s i n c l u d e d 57.7% o f t o t a l employment. By 1956 the p e r c e n t a g e had r i s e n t o 60.07=. a  * I n t h i s paper, Lower M a i n l a n d Region and Vancouver M e t r o p o l i t a n A r e a w i l l be taken as meaning the same, f o r a l l p r a c t i c a l p u r p o s e s .  37 In  1956  (1961 Census s t a t i s t i c s a r e n o t as y e t a v a i l a b l e ) , a l l  M a n u f a c t u r i n g I n d u s t r y Groups employed a t o t a l of twenty-two labour f o r c e .  p e r c e n t of the  T h i s compared w i t h s i x t y p e r c e n t o f the l a b o u r f o r c e i n  the T e r t i a r y Group.  I n a d d i t i o n , the M e t r o p o l i t a n A r e a p o s s e s s e d a h i g h  r a t e o f p o p u l a t i o n growth, c o u p l e d w i t h a h i g h l e v e l o f p u r c h a s i n g power and a r a t e o f s p e n d i n g above the n a t i o n a l average.  R e t a i l s a l e s f o r B.C. 3  i n 1956 were h i g h e r than i n any o t h e r w e s t e r n p r o v i n c e . of  The  significance  these f a c t o r s l i e s i n the r e g i o n a l importance of the d i s t r i b u t i v e o u t -  l e t s f o r consumer goods and manufactured  p r o d u c t s , whereas m a n u f a c t u r i n g  i t s e l f may n o t be as i m p o r t a n t . For example: As a r e s u l t o f the r e s t r i c t e d market a v a i l a b l e to l o c a l f i r m s a wide range o f m e t a l p r o d u c t s i s i m p o r t e d f o r b o t h the p r o d u c e r and the consumer m a r k e t s . ^ The t r e n d of the l o c a l economy can be a s c e r t a i n e d from T a b l e 5. The T e r t i a r y Group a c t u a l l y i n c r e a s e d i t s p e r c e n t a g e o f the t o t a l employment o v e r the f i v e y e a r p e r i o d .  M a n u f a c t u r i n g employment i n c r e a s e d o n l y  e i g h t p e r c e n t i n the 1951-56 p e r i o d , whereas: S e r v i c e s and F i n a n c e i n c r e a s e d twenty-seven p e r c e n t ; C o n s t r u c t i o n , t h i r t y - f i v e p e r c e n t ; Transp o r t a t i o n and U t i l i t i e s , f i f t e e n p e r c e n t ; and Trade, t e n percent."'  Im-  provements i n p r o d u c t i v i t y through the i n t r o d u c t i o n of secondary manufact u r i n g and new  t e c h n i q u e s i n the A r e a reduce the s i g n i f i c a n c e of the lower  r e l a t i v e r a t e o f growth by the M a n u f a c t u r i n g Group. Group c o n t i n u e s to dominate In  However, the T e r t i a r y  the A r e a .  terms o f the h y p o t h e s i s , t h e r e f o r e , the M e t r o p o l i t a n Vancouver  A r e a i s c h a r a c t e r i z e d by a predominance o f T e r t i a r y or ' S e r v i c e ' I n d u s t r y ies.  The types o f f i r m s i n c l u d e d i n numbers i i i ) t o v i i )  the l i s t c o m p i l e d i n Chapter I I I may  (page 35) o f  be those o f g r e a t e s t i m p o r t a n c e .  )  38 (b) M a n u f a c t u r i n g : C h a r a c t e r i s t i c s i n the M e t r o p o l i t a n A r e a A l t h o u g h i t has been shown t h a t m a n u f a c t u r i n g i s n o t dominant i n the r e g i o n , and t h a t i n a l l p r o b a b i l i t y most secondary m a n u f a c t u r i n g f i r m s t h a t have l o c a t e d a r e o r i e n t e d towards  the l o c a l m a r k e t , . i t i s i n t e n d e d  t o e l a b o r a t e i n t h i s s e c t i o n on the c h a r a c t e r i s t i c s of l o c a l ing firms.  S i n c e i t i s e v i d e n t (from b o t h the commodities  manufactur-  s h i p p e d by a i r  f r e i g h t and the i n f o r m a t i o n on f i r m s w i t h the g r e a t e s t p r o p e n s i t y to t r a v e l ) t h a t m a n u f a c t u r i n g e s t a b l i s h m e n t s a r e o f p r i m a r y concern to the h y p o t h e s i s , i t i s n e c e s s a r y t h a t the n a t u r e and importance o f manufact u r i n g i n the A r e a be  established.  Vancouver b e n e f i t s by p r o x i m i t y to s e v e r a l b e n e f i c i a l r e s o u r c e s : a huge and s u s t a i n e d v a r i e t y of softwoods; an e x c e l l e n t h a r b o u r ; and  the  f e r t i l e and c l i m a t i c a l l y advantageous a g r i c u l t u r a l a r e a of the F r a s e r Delta.  As a r e s u l t , wood p r o d u c t s m a n u f a c t u r i n g and f o o d p r o c e s s i n g  have dominated  the l o c a l i n d u s t r i a l scene f o r many y e a r s ( I n 1956,  the  p e r c e n t a g e s of t o t a l m a n u f a c t u r i n g employment devoted to these p r o c e s s e s were t h i r t y - t h r e e p e r c e n t and twenty-one p e r c e n t r e s p e c t i v e l y ) .  In  a d d i t i o n , l a r g e s u p p l i e s of s c r a p m e t a l from the p o r t , adequate s o u r c e s o f e l e c t r i c power, and a l o c a l market demand, have encouraged  the  manufacture  of i r o n and s t e e l p r o d u c t s ( T h i s comprised seventeen p e r c e n t of t o t a l m a n u f a c t u r i n g employment i n 1956).  However, because o f the n a t u r e o f  t h e s e raw m a t e r i a l s , the r e s t r i c t e d m a r k e t , and the s t r u c t u r e o f f r e i g h t r a t e s ( f a v o u r i n g h i g h l y manufactured manufactured  goods from the e a s t , and p r i m a r y  p r o d u c t s from the w e s t ) , the Vancouver M e t r o p o l i t a n Area  has  been o r i e n t e d towards p r i m a r y m a n u f a c t u r i n g , or the f i r s t s t a g e p r o c e s s i n g o f raw m a t e r i a l s .  T h i s i n d u s t r i a l s t r u c t u r e has p r o v i d e d r e l a t i v e l y  s i m p l e , low v a l u e commodities  which a r e e i t h e r consumed a t t h i s  stage  39 (such as a r e f o o d s t u f f s , lumber, and r o l l i n g m i l l p r o d u c t s ) , or a r e s h i p p e d elsewhere f o r secondary m a n u f a c t u r e .  I n a d d i t i o n , many of the  secondary  m a n u f a c t u r i n g f i r m s t h a t have e s t a b l i s h e d i n the A r e a a l s o produce heavy, r e l a t i v e l y low v a l u e p r o d u c t s .  These i n c l u d e : plywood, sash and  door,  canned and p r o c e s s e d f o o d s , c o n s t r u c t i o n and i n d u s t r i a l e l e c t r i c a l machine r y , and g e n e r a l c o n s t r u c t i o n m e t a l p r o d u c t s . Firms engaged i n the manufacture  o f such items a r e n o t of p a r t i c u -  l a r r e l e v a n c e to the h y p o t h e s i s , as the a i r f r e i g h t i n g o f t h e i r p r o d u c t s i s n o t p r a c t i c a l a t the p r e s e n t t i m e . , A i r t r a v e l by t h e i r p e r s o n n e l i s perhaps  a p o s i t i v e f a c t o r , a l t h o u g h the l o c a t i o n a l demands o f s a w m i l l s and  plywood p l a n t s , f o o d p r o c e s s i n g p l a n t s , and i r o n f o u n d r i e s a r e too r i g i d and dependent on o t h e r f a c t o r s ( s u c h as t i d e w a t e r ) to a l l o w a r e a l i s t i c a p p l i c a t i o n o f the h y p o t h e s i s . I n s p i t e of the drawbacks of the Vancouver M e t r o p o l i t a n A r e a , secondary m a n u f a c t u r i n g i s b e g i n n i n g t o g a i n a f o o t h o l d i n the l o c a l economy. .For example, as compared w i t h the Toronto  Area:  I n 1956 the p r o p o r t i o n of m a n u f a c t u r i n g employment i n the i r o n and s t e e l group, paper p r o d u c t s , and n o n - m e t a l l i c m i n e r a l p r o d u c t i o n ( i n c l u d i n g p e t r o l e u m p r o d u c t s ) was a l m o s t the same i n the two a r e a s . T h i s i s a mark o f the growing importance of the Lower M a i n l a n d i n secondary m a n u f a c t u r i n g . . . i n r e c e n t y e a r s the r e g i o n has i n f a c t been g a i n i n g an i n c r e a s i n g share of a w i d e r range and a more advanced type of m a n u f a c t u r i n g . ^ R e g a r d l e s s o f t h i s i t must be borne i n mind t h a t an share  1  o f advanced i n d u s t r y i s s t i l l  ian t o t a l .  l e s s than f i v e p e r c e n t of the Canad-  Growth r a t e s appear v e r y h i g h a t f i r s t g l a n c e u n t i l the s m a l l  s c a l e i s taken i n t o a c c o u n t . Perhaps t h a t growth  'increasing  These r a t e s can be n o t e d from T a b l e  6.  the most s i g n i f i c a n t f a c t to be g a i n e d from T a b l e 6 i s  i n the t r a d i t i o n a l p r i m a r y M a n u f a c t u r i n g I n d u s t r y Groups  n e g l i g i b l e f o r the p e r i o d c o v e r e d , whereas the more advanced  was  secondary  40  TABLE 6 RATE OF GROWTH,,AND EMPLOYMENT DISTRIBUTION IN THE LOWER MAINLAND REGION, BY MANUFACTURING INDUSTRY GROUPS (1956) 7  M a n u f a c t u r i n g I n d u s t r y Groups  T r a n s p o r t a t i o n Equipment Printing Textiles Non-ferrous I r o n and S t e e l Wood P r o d u c t s Paper P r o d u c t s Non-metallies E l e c t r i c a l Apparatus Chemicals Food and Beverages Total  Percentage Growth i n Employment (1951-56)  Percentage of T o t a l Manuf. Employment (1956)  21 6 15 0 35 0 47 67 60 150 0  6 7 5 1 17 33 5 2 1 2 21 . 100  41 manufacturing  c a t e g o r i e s d i s p l a y h e a l t h y growth r a t e s .  A l t h o u g h Column 3 i n Table 6 shows t h e c o n t i n u e d dominance o f primary manufacturing,  e i g h t y - f o u r ' p e r c e n t o f t h e 1951-56 i n c r e a s e i n man-  u f a c t u r i n g employment i n t h e Vancouver M e t r o p o l i t a n A r e a was i n t h e s o called  'booming i n d u s t r i e s . '  I n f i v e o f t h e seven 'booming i n d u s t r i e s '  the growth r a t e s i n t h e R e g i o n were t h r e e t o n i n e times as g r e a t as those g f o r t h e n a t i o n as a whole.  These f i v e i n c l u d e : e l e c t r i c a l  apparatus,  i r o n and s t e e l p r o d u c t s , paper p r o d u c t s , n o n - m e t a l l i c m i n e r a l s p r o d u c t s , and c h e m i c a l p r o d u c t s .  These secondary m a n u f a c t u r i n g  classifications  would appear t o be o f r e l e v a n c e t o t h e h y p o t h e s i s , i f h i g h q u a l i t y  products  a r e p r o d u c e d , c o r r e s p o n d i n g t o those c u r r e n t l y b e i n g s h i p p e d by a i r . S i m i l a r l y , i n these M a n u f a c t u r i n g Groups t h e p o t e n t i a l i s h i g h f o r t h e c o r p o r a t e use o f a i r c r a f t .  However, these m a n u f a c t u r e r s  twenty-seven p e r c e n t o f t h e 1956 m a n u f a c t u r i n g  employed o n l y  labour force ( t h i r t y - n i n e  p e r c e n t i f P r i n t i n g and T e x t i l e s a r e i n c l u d e d , as p o t e n t i a l l y they a r e also of significance for a i r f r e i g h t ) .  This percentage  represented but  s i x t o e i g h t p e r c e n t o f t h e t o t a l Lower M a i n l a n d R e g i o n l a b o u r f o r c e . The  small scale i s therefore evident. The p r o d u c t s o f these new secondary m a n u f a c t u r i n g  a l l y of r e l a t i v e l y low v a l u e .  f i r m s a r e gener-  From 1951 t o 1956 v a l u e added f o r a l l man-  u f a c t u r i n g i n d u s t r y i n t h e Metro Area i n c r e a s e d from f o r t y - o n e p e r c e n t t o f o r t y - t h r e e p e r c e n t o f t h e gross v a l u e o f p r o d u c t i o n .  The 1956 f i g u r e  f o r Canada was f o r t y - f o u r p e r c e n t , and f o r t h e Toronto R e g i o n ,  forty-  9 eight percent.  F r e i g h t r a t e s , and a l i m i t e d market f a v o u r the c o n t i n u e d  import o f h i g h l y m a n u f a c t u r e d goods from t h e e a s t , whereas these same f r e i g h t r a t e s encourage t h e shipment o f l o c a l l o w v a l u e m a n u f a c t u r e d goods to t h e P r a i r i e P r o v i n c e s , as w e l l as p r o d u c t i o n f o r t h e Lower M a i n l a n d  42 market.  Therefore:  ... i t p r o b a b l y has to be a c c e p t e d t h a t the more advanced types of p r o d u c t w i l l c o n t i n u e to be s u p p l i e d l a r g e l y from e a s t e r n Canada and e l s e w h e r e . Goods of t h i s type a r e s u f f i c i e n t l y v a l u a b l e to c a r r y the f r e i g h t c o s t s i n v o l v e d i n shipment from p l a n t s l o c a t e d i n c l o s e r p r o x i m i t y to a l a r g e r m a r k e t . ^ 1  Thus, f o r purposes o f the h y p o t h e s i s , most l o c a l f i r m s i n the above c l a s s i f i c a t i o n s may  n o t be  too s u i t a b l e f o r f u r t h e r s t u d y ; however,  the l o c a l d i s t r i b u t o r s of h i g h q u a l i t y p r o d u c t s appear to be q u i t e able.  Table 7 presents  a l i s t of the types of commodities p u r c h a s e d o u t -  s i d e the Vancouver M e t r o p o l i t a n A r e a f o r each M a n u f a c t u r i n g Group.  suit-  Many of these i m p o r t s are of h i g h q u a l i t y .  It is  Industry  conceivable,  t h e r e f o r e , t h a t a p a r t i c u l a r secondary m a n u f a c t u r i n g f i r m ( r e g a r d l e s s  of  p r o d u c t v a l u e or b u l k ) c o u l d d e s i r e a i r p o r t l o c a t i o n i n f u t u r e because of the a i r f r e i g h t of v a l u a b l e p r o d u c t i o n sale d i s t r i b u t i o n firms handling  components.  S i m i l a r l y , . t h e whole-  such h i g h q u a l i t y merchandise may  benefit  by a i r p o r t l o c a t i o n . From t h i s T a b l e i t i s a p p a r e n t t h a t the T e x t i l e s , M e t a l  Products,  and E l e c t r i c a l A p p a r a t u s M a n u f a c t u r i n g Groups i m p o r t commodities t h a t appear to be of h i g h q u a l i t y and production.  The  t h a t c o n s t i t u t e n e c e s s a r y f a c t o r s of  thoughts put f o r w a r d above c o u l d p o s s i b l y a p p l y  to such  Groups. The m a r k e t i n g or c o r p o r a t e ing  s t r u c t u r e of l o c a l secondary m a n u f a c t u r -  f i r m s c o u l d r e i n f o r c e the above f o r c e s .  The  amount of p r o d u c t s a l e s  o u t s i d e the M e t r o p o l i t a n Vancouver A r e a , f o r any one the t r a v e l l i n g h a b i t s of salesmen and v a l u e or b u l k of the p r o d u c t . e l s e w h e r e may  firm, w i l l  influence  e x e c u t i v e s , q u i t e a p a r t from  the  S i m i l a r l y , f i r m s w i t h t h e i r head o f f i c e s  f i n d the demand f o r c o r p o r a t e  t r a v e l s u f f i c i e n t l y high  w a r r a n t a l o c a t i o n t h a t i s c o n v e n i e n t to the a i r p o r t . s e n t d a t a r e l e v a n t to b o t h of these f a c t o r s .  Tables 8 and  to 9 pre-  43  TABLE 7  MAJOR ITEMS PURCHASED OUTSIDE THE LOWER MAINLAND REGION, BY MANUFACTURING INDUSTRY GROUP (1956)  Manufacturing Industry Groups Food and Beverages Textiles Paper P r o d u c t s Metal Products  T r a n s p o r t Equipment E l e c t r i c a l Apparatus Chemicals Printing  ...............  Types o f Commodities M i l l i n g machinery, vegetable o i l s Chemicals, t e x t i l e s , p l a s t i c s , fabrics C h e m i c a l s , f a n c y papers M a c h i n e r y , hardware, t o o l s and c o n t r o l s , p r e c i s i o n equipment, engines and motors A u t o m o t i v e p a r t s , motors E l e c t r o n i c components, r e f r i g e r a t o r parts Pigments and s o l v e n t s , p o l y e s t e r s F i n e p a p e r s , machinery and p a r t s  Note: Only those M a n u f a c t u r i n g I n d u s t r y Groups and i m p o r t e d commodi t i e s t h a t a r e o f r e l e v a n c e t o the h y p o t h e s i s a r e quoted.  44  TABLE 8  PERCENTAGE OF TOTAL PRODUCTION SOLD OUTSIDE B.C., BY MANUFACTURING INDUSTRY GROUPS I N THE LOWER MAINLAND (1956) 1  Manufacturing Industry Groups  Food and Beverages ( o t h e r than f i s h ) Metal Products Wood P r o d u c t s ( e x c l u d i n g plywood and lumber) M a c h i n e r y and E l e c t r i c a l S u p p l i e s Paper P r o d u c t s Textiles F r u i t and V e g e t a b l e s  2  Percentage o f T o t a l Production Sold O u t s i d e B. C. 18 20 20 45 .30 40 41  Notes: M a n u f a c t u r i n g I n d u s t r y Groups a r e a r r a n g e d i n o r d e r o f tonnage of e x p o r t shipments. Only M a n u f a c t u r i n g I n d u s t r y Groups t h a t a r e r e l a t i v e l y m o b i l e and a r e h i g h o r medium ' t r a v e l t y p e s ' a r e i n c l u d e d — W o o d P r o d u c t s and Paper P r o d u c t s when i n t e g r a t e d w i t h lumber o r plywood a r e n o t m o b i l e .  45  TABLE 9  HEAD OFFICES OUTSIDE THE LOWER MAINLAND REGION EXPRESSED AS A PERCENTAGE OF ALL THE FIRMS I N EACH MANUFACTURING INDUSTRY GROUP (1956)  Manufacturing Industry Groups  Paper P r o d u c t s Food and Beverages E l e c t r i c a l Apparatus Metal Products P r i n t i n g and M i s c e l l a n e o u s Textiles  Percentage of T o t a l Firms w i t h Head O f f i c e s Outside the R e g i o n  .  27 26 22 .19 9 8  Note: Only those M a n u f a c t u r i n g I n d u s t r y Groups t h a t a r e r e l a t i v e l y m o b i l e and a r e h i g h o r medium ' t r a v e l t y p e s ' a r e quoted.  46 From T a b l e 8 i t i s seen t h a t the M a n u f a c t u r i n g Groups o f Machinery and E l e c t r i c a l S u p p l i e s , T e x t i l e s , and F r u i t and V e g e t a b l e s have perhaps the g r e a t e s t p o t e n t i a l f o r t r a v e l .  T a b l e 9 p r o v i d e s d a t a which i n c r e a s e s  t r a v e l p o t e n t i a l , as a p p r o x i m a t e l y one f i f t h o f the f i r m s i n the Food and B e v e r a g e s , E l e c t r i c a l A p p a r a t u s , and M e t a l P r o d u c t s Groups a r e n o t  locally  controlled. I t i s apparent from the p r e c e d i n g d a t a t h a t the f o l l o w i n g Manufact u r i n g I n d u s t r y Groups may i) ii) iii) iv)  be s u i t a b l e f o r s t u d y :  M e t a l P r o d u c t s and M a c h i n e r y ; E l e c t r i c a l Products ( i n c l u d i n g E l e c t r o n i c ) ; T e x t i l e s and C l o t h i n g ; F r u i t and V e g e t a b l e s (Food and Beverages a r e n o t i n c l u d e d , as e x p o r t s a r e low, i m p o r t s do n o t appear to be o f s u f f i c i e n t v a l u e o r magnitude f o r the c o n t i n u o u s use o f a i r f r e i g h t , and the i n d u s t r y i s d e c l i n i n g as a p e r c e n t a g e of the r e g i o n a l manufacturing total) .  However, these i n d u s t r i e s a r e f o r e c a s t to comprise o n l y twentye i g h t p e r c e n t of the 1976  t o t a l m a n u f a c t u r i n g employment i n the Lower  14 Mainland Region.  When i t i s remembered t h a t m a n u f a c t u r i n g employment  p o s s e s s e d the l o w e s t 1951-56 growth r a t e i n the R e g i o n , the s i g n i f i c a n c e o f the s e l e c t e d Groups w i t h i n the t o t a l p i c t u r e i s n o t g r e a t .  With  this  o v e r a l l i n d u s t r i a l s t r u c t u r e i n mind i t would appear t h a t an emphasis on f i r m s r e s p o n s i b l e f o r the d i s t r i b u t i o n o f i m p o r t e d h i g h l y goods i n the above Groups would be C.  A i r freight  manufactured  rewarding.  characteristics:  Vancouver M e t r o p o l i t a n Area The  t o t a l amount o f a i r f r e i g h t s h i p p e d through Vancouver I n t e r -  n a t i o n a l A i r p o r t has r i s e n r a p i d l y and c o n s i s t e n t l y i n the p a s t f i v e y e a r s . T h i s r i s e , and a f o r e c a s t f o r the e x p e c t e d volume o f a i r f r e i g h t to i s shown i n T a b l e  10.  1980  47  TABLE 10  PAST AND FORECAST A I R FREIGHT MOVEMENTS: VANCOUVER INTERNATIONAL AIRPORT 1  Inbound (tons)  Year  I.  1957 1958 1960 forecast actual 1961 1962 1965 1970 1975 1980  Outbound (tons)  • • •  •  •  • • *  •  *  - 0  • •  • • •  3053.9 3702.4 4665.3  -  3152.5 3128.5 3825.8  • • •  • • • •  •  • •  •  -•  •  *  • - • • - *  • - •  Over p r e v i o u s f i v e y e a r p e r i o d .  Total (tons)  4602.4 4705.9 6000 6206.5 7330.9 8491 .12000 24000 42000 62000  Percent Increase  • - • • • •  • - • • - •  84 100 100 75 48  a  48 A l t h o u g h t h e annual tonnages p a s s i n g impressive  through t h e A i r p o r t a r e n o t  as compared w i t h those f o r t h e l a r g e r c e n t r e s  i n t h e U.S.A.  (see Appendix I ) , t h e p a s t and f o r e c a s t growth r a t e s i n d i c a t e t h e s i g n i f i cance o f a i r f r e i g h t i n the l o c a l economy. The  r e g i o n a l c h a r a c t e r i s t i c s o u t l i n e d i n P a r t B o f t h i s Chapter  a r e r e f l e c t e d i n t h e f r e i g h t r a t e s t r u c t u r e o f t h e major a i r c a r r i e r s e r v i n g Vancouver, according  C e r t a i n commodity groups a r e o f f e r e d s p e c i a l r a t e s ,  t o t h e d i r e c t i o n o f shipment.  As T a b l e 11 shows, r e l a t i v e l y l o w  v a l u e m a n u f a c t u r e d goods a r e g i v e n s p e c i a l r a t e s from Vancouver e a s t w a r d , whereas h i g h l y m a n u f a c t u r e d goods r e c e i v e l o w r a t e s on t h e westbound journey.  I t i s s i g n i f i c a n t t h a t these r a t e s a r e o n l y o f f e r e d on r o u t e s  where a h i g h volume o f t h e s p e c i f i c commodities a r e e x p e c t e d . p r e f e r e n t i a l r a t e s a r e r e p r e s e n t a t i v e of the general r e g i o n a l patterns  Thus these trade  and t h e economic base o f each s o u r c e . T a b l e 11 s u p p o r t s t h e suggested a p p l i c a t i o n o f t h e h y p o t h e s i s  to  the i n d u s t r i e s t h a t d i s t r i b u t e h i g h l y manufactured p r o d u c t s i n the Vancouver M e t r o p o l i t a n A r e a , p l u s those secondary m a n u f a c t u r i n g f i r m s i m p o r t m a n u f a c t u r e s as f a c t o r s o f p r o d u c t i o n .  The d i s t r i b u t i o n  that  facilities,  such as warehouses and s h i p p i n g f i r m s would be s u i t a b l e f o r s t u d y .  The  f a c t t h a t goods i m p o r t e d by s e a b e n e f i t by l o w r a t e s c o u l d be o f r e l e vance t o c e r t a i n i m p o r t e r s , and perhaps encourage t h e i r r e - l o c a t i o n a t the a i r p o r t . Study o f p r e s e n t t y p i c a l consignees f o r a i r f r e i g h t i n t h e Study Area showed a b i a s towards r e t a i l f i r m s and w h o l e s a l e d i s t r i b u t o r s .  Some  of these have become e n t i r e l y dependent upon a i r f r e i g h t f o r c e r t a i n items that f i g u r e l a r g e l y i n t h e i r trade.  I t i s o f n o t e t h a t t h e very, l a r g e .  r e t a i l o u t l e t s such as department s t o r e s , a r e heavy u s e r s o f a i r f r e i g h t , t h e i r volume shipments a l l o w i n g t h e maintenance o f s p e c i a l r a t e s .  During  49  TABLE 11 SPECIFIC COMMODITY PREFERENTIAL AIR FREIGHT RATE STRUCTURE BETWEEN VANCOUVER AND EASTERN C I T I E S (1962-63) 3  Route Vancouver t o W i n n i p e g , M o n t r e a l , T o r o n t o and Ottawa  M o n t r e a l , T o r o n t o , and Winnipeg t o Vancouver  Vancouver t o W i n n i p e g , M o n t r e a l , T o r o n t o and Ottawa  Commodities A c c o r d e d P r e f e r e n t i a l Rates  Decorative greens, p o t t e d p l a n t s Fish--fresh, frozen or s h e l l C l o t h i n g , footwear, outerwear undergarments  C l o t h i n g , footwear, outerwear, undergarments T e x t i l e s , t e x t i l e manufactures, n a t u r a l or s y n t h e t i c f i b r e s Drugs o r m e d i c i n e s , m e d i c a l s u p p l i e s Pharmaceuticals, cosmetics, t o i l e t preparations A g r i c u l t u r a l implements o r p a r t s Machines o r p a r t s Automobile or truck p a r t s , excluding radios or parts E l e c t r i c a l a p p l i a n c e s , machines, equipment, s u p p l i e s , o r p a r t s Phonograph r e c o r d s  Any shipment a r r i v i n g by ocean carrier  As a c c o r d e d t o m a n u f a c t u r e r s , • w h o l e s a l e r s , and r e t a i l e r s . Minimum w e i g h t p e r shipment i s 100 pounds.  50 the f i r s t t e n months of o p e r a t i o n of an a i r f r e i g h t s e r v i c e c r e a t e d s e r v e the l a r g e r e t a i l o u t l e t s , a p p r o x i m a t e l y 100  to  tons of c l o t h i n g , shoes,  t o y s , m i l l i n e r y , and o t h e r goods were s h i p p e d to Vancouver from M o n t r e a l or Toronto.  One  major department s t o r e c h a i n d i s t r i b u t e s a l l m a i l  goods from W i n n i p e g , much of t h i s by a i r f r e i g h t . Over a ton of goods a r e s h i p p e d by a i r to Vancouver each day.  these  The n a t u r e of the  c o n s i g n e e s suggests t h a t d i s t r i b u t i v e i n d u s t r i e s such as f r e i g h t ing,  order  various forward-  w a r e h o u s i n g , c a r t a g e , and d i s t r i b u t i o n s e r v i c e s would be s u i t a b l e f o r  a p p l i c a t i o n o f the Included  hypothesis.  amongst the a i r f r e i g h t consignees were a number of  dis-  t r i b u t o r s of auto p a r t s , machine t o o l s and p a r t s , m a c h i n e r y , c o n s t r u c t i o n equipment p a r t s , e l e c t r o n i c components, and  fabrics.  E v i d e n t a l s o were  m a n u f a c t u r i n g f i r m s , p r i n c i p a l l y those p r o d u c i n g t e x t i l e s and c l o t h i n g , e l e c t r o n i c and  e l e c t r i c a l g e a r , m a c h i n e r y and p a r t s , and  industrial  equipment. I n g e n e r a l , l o c a l a i r f r e i g h t i s c h a r a c t e r i z e d by many and s m a l l shipments by a v e r y air  freight infrequently.  varied  l a r g e number of f i r m s , each of w h i c h u t i l i z e s Most f i r m s can be c a t e g o r i z e d as  'emergency  u s e r s ' , few h a v i n g committed themselves to a i r f r e i g h t as a s t a n d a r d means of d e l i v e r y . o f any new  However, as s t a t e d i n Chapter I I , t h i s s i t u a t i o n i s t y p i c a l  form o f t r a n s p o r t .  I t can be e x p e c t e d to improve as the medium  i t s e l f expands and becomes more e c o n o m i c a l and  commonplace.  I t i s f e l t t h a t the c h a r a c t e r i s t i c s of a i r f r e i g h t i n the Vancouver M e t r o p o l i t a n A r e a l e n d credence to the t e n t a t i v e c o n c l u s i o n s P a r t B.  reached i n  D i s t r i b u t i v e i n d u s t r i e s , and w h o l e s a l e d i s t r i b u t i o n o u t l e t s f o r  auto p a r t s , e l e c t r i c a l and  e l e c t r o n i c a p p a r a t u s , c o n s t r u c t i o n equipment  p a r t s , i n d u s t r i a l machinery and p a r t s , t e x t i l e s and  f a b r i c s , can be  and  given  51 c o n s i d e r a b l e w e i g h t i n any Study Group t o be chosen f o r the a p p l i c a t i o n o f the  I).  hypothesis.  C h a r a c t e r i s t i c s of a i r t r a v e l : Vancouver M e t r o p o l i t a n A r e a The  Study A r e a i s not a p a r t i c u l a r l y s u i t a b l e a r e a f o r t h e  t i o n of l i g h t a i r c r a f t .  The  opera-  f a c t a l o n e has been a l i m i t i n g f a c t o r i n the  growth of l o c a l c o r p o r a t e a v i a t i o n .  Mountainous t e r r a i n , p l u s r a t h e r  s e t t l e d weather combine t o make medium and l o n g d i s t a n c e t r i p s by  light  a i r c r a f t under V i s u a l F l i g h t R u l e s q u e s t i o n a b l e t o hazardous d u r i n g l a t e autumn, w i n t e r , and s p r i n g months.  Since these l i g h t  un-  the  single-engine  a i r c r a f t a r e those u s u a l l y w i t h i n the c a p a b i l i t i e s o f the s m a l l c o r p o r a t i o n and i t s e x e c u t i v e s t o purchase and f l y , the i n c e n t i v e s t o do so may have been g r e a t .  Larger, twin-engine  strument f l y i n g , and p o s s e s s i n g o p e r a t i o n are i n continuous T a b l e 9' (page 45)  a i r c r a f t , capable  of s u s t a i n e d i n -  s u f f i c i e n t power r e s e r v e s f o r s a f e mountain  use by l a r g e r c o r p o r a t i o n s .  I t was  shown i n  t h a t o f the l o c a l f i r m s under c o n s i d e r a t i o n i n t h i s  paper, twenty p e r c e n t  a r e n a t i o n a l or i n t e r n a t i o n a l i n scope.  e x t e r n a l l y c o n t r o l l e d f i r m s may  From T a b l e s that Metal Products  8 (page 44)  These l a r g e  be the most a p p r o p r i a t e f o r q u e s t i o n i n g  c o r p o r a t e t r a v e l , and the subsequent a p p l i c a t i o n of the and 9 (page 45)  on  hypothesis.  of P a r t B i t i s apparent  and M a c h i n e r y , and E l e c t r i c a l A p p a r a t u s have b o t h a  r e l a t i v e l y h i g h percentage of products  s o l d o u t s i d e B.C.  o u t s i d e the Vancouver M e t r o p o l i t a n A r e a .  and head o f f i c e s  Thus a p o t e n t i a l e x i s t s f o r con-  s i d e r a b l e t r a v e l by e x e c u t i v e and s a l e s p e r s o n n e l . can "be d i s c o u n t e d ,  not  Paper P r o d u c t s  firms  r e g a r d l e s s of t h e i r h i g h v a l u e s i n each of the above  c h a r a c t e r i s t i c s , as i n t e g r a t i o n w i t h the p r o d u c t i o n o f o t h e r wood lowers the m o b i l i t y of the f i r m s and t h u s the r e l e v a n c e of the  products  hypothesis.  T e x t i l e manufacturers possess c o n s i d e r a b l e p o t e n t i a l f o r a i r t r a v e l ,  as  52 f o r t y p e r c e n t o f t h e i r p r o d u c t s a r e s o l d o u t s i d e B.C.  A l t h o u g h the  inci-  dence of o u t s i d e ownership i s h i g h i n the Foods and Beverages Group, the low l e v e l of o u t s i d e markets m i t i g a t e s p o t e n t i a l c o r p o r a t e The M a n u f a c t u r i n g I n d u s t r y Groups t h a t appear f a v o u r a b l e  air travel.  for  extensive  t r a v e l c o r r e s p o n d w i t h those t e n d e r e d f o r c o n s i d e r a t i o n i n P a r t s B and I n Chapter I I i t was medium, or low ies  n o t e d t h a t c e r t a i n i n d u s t r i e s were of  ' t r a v e l types'.  I n d u s t r i e s of the h i g h and medium  real estate.  W i t h the e x c e p t i o n s  i n d u s t r i e s a r e of a t e r t i a r y n a t u r e .  s e r v i c e s , f i n a n c e , and  categor-  t r a v e l appears to e x i s t .  .Since the Vancouver  Metropolitan considerable  S i m i l a r l y , i t i s s i g n i f i c a n t t h a t the  dary m a n u f a c t u r i n g f i r m s mentioned i n the p r e c e d i n g 'high' t r a v e l  insurance  of m a n u f a c t u r i n g and m i n i n g , these  A r e a i s o r i e n t e d towards the T e r t i a r y Group the p o t e n t i a l f o r air  high,  i n c l u d e d m a n u f a c t u r i n g , m i n i n g , b u s i n e s s s e r v i c e s , c o n s t r u c t i o n , whole-  s a l e and r e t a i l , p r o f e s s i o n a l and p e r s o n a l and  C.  secon-  p a r a g r a p h are i n the  category.  .Many m i n i n g company o f f i c e s are l o c a t e d i n the Vancouver A r e a . However, l i k e b u s i n e s s s e r v i c e s (such as a c c o u n t i n g a r e t i e d to the c e n t r a l b u s i n e s s d i s t r i c t , travel.  and b r o k e r a g e s ) they  regardless  of the degree of  S e r v i c e s such as R e s e a r c h and Development L a b o r a t o r i e s have dem-  onstrated a preference  for airport location.  Local l a b o r a t o r i e s could  be  q u e r i e d as to the a p p l i c a b i l i t y of t h i s g e n e r a l i z a t i o n i n the Study A r e a . The  c o n s t r u c t i o n i n d u s t r y i s of c o n s i d e r a b l e  (see T a b l e 5, page 36).  l o c a l importance  I n the 1951-56 p e r i o d i t s u s t a i n e d  growth r a t e of a l l g e n e r a l  i n d u s t r y groups.  the  highest  Those f i r m s i n the Vancouver  M e t r o p o l i t a n A r e a t h a t a r e engaged i n c o n s t r u c t i o n c o n t r a c t work i n o t h e r p a r t s of B.C.  or Canada c o u l d be s u i t a b l e f o r s t u d y .  w h o l e s a l e and r e t a i l f i r m s a r e of o b v i o u s i m p o r t a n c e i n the Case Study a r e a .  Whereas one would n o t e x p e c t l a r g e r e t a i l o u t l e t s to l o c a t e  53 near an a i r p o r t , • w h o l e s a l e f i r m s c o u l d do s o . A medium range ' p r o p e n s i t y to  t r a v e l ' f o r the w h o l e s a l e f i e l d s t r e n g t h e n s the e s t a b l i s h e d  of  t h i s C a t e g o r y i n the Case Study A r e a .  importance  I t i s f e l t t h a t the i n t e r e s t s o f most p r o f e s s i o n a l and f i n a n c i a l s e r v i c e s , and i n s u r a n c e and r e a l e s t a t e f i r m s , would n o t be s e r v e d by a i r p o r t l o c a t i o n , r e g a r d l e s s o f the amount o f t r a v e l by p e r s o n n e l . central business d i s t r i c t  The  and the s e r v i c e s i t o f f e r s a r e more d e t e r m i n a t i v e  f a c t o r s of l o c a t i o n . In  e f f e c t , the types o f f i r m s i n d i c a t e d as b e i n g s u i t a b l e f o r study  i n P a r t s B and C o f t h i s Chapter a r e repeated i n t h i s P a r t .  O t h e r s , such  as r e s e a r c h and development l a b o r a t o r i e s and c o n s t r u c t i o n f i r m s have been added. E.  I n d u s t r i e s S u i t a b l e f o r Study: Vancouver M e t r o p o l i t a n A r e a The l i s t o f p o t e n t i a l i n d u s t r i e s f o r s t u d y , p r e s e n t e d a t the end  of  Chapter I I I , can now be amended by the a p p l i c a t i o n o f the d a t a c o n t a i n e d  i n P a r t s B t o D o f Chapter I V . a t t a c h e d t o each  'Category'.*  I n a d d i t i o n , 'Weight F a c t o r s " can be These f a c t o r s a r e d e r i v e d from a r e a s o n a b l e  a p p r a i s a l o f the r e l e v a n c e o f each Category t o the h y p o t h e s i s i n the Case Study A r e a .  T a b l e 12 c o n t a i n s the I n d u s t r i a l C a t e g o r i e s , 'Types,' and  Weight F a c t o r s .  'Category' f o r the remainder o f t h i s paper w i l l r e f e r t o one o f the f o u r main g r o u p i n g s o f f i r m s s u i t a b l e f o r s t u d y , as p r e s e n t e d i n Table 12. 'Type' w i l l r e f e r t o a s p e c i f i c f i r m o f a p a r t i c u l a r n a t u r e w i t h i n a 'Category', as p r e s e n t e d i n T a b l e 12.  TABLE 12  CATEGORIES, TYPES, AND WEIGHT FACTORS OF FIRMS SUITABLE FOR STUDY IN THE VANCOUVER METROPOLITAN AREA  Categories  Wholesale Distribution  Manufacturing  Distribution  Miscellaneous  Total  Types  Weight factor  Automobile P a r t s ; E l e c t r i c a l and E l e c t r o n i c A p p a r a t u s ; C o n s t r u c t i o n Equipment; I n d u s t r i a l M a c h i n e r y ; Text i l e s and F a b r i c s  40  M a c h i n e r y and P a r t s ; E l e c t r o n i c and E l e c t r i c a l Components; I n d u s t r i a l and C o n s t r u c t i o n E q u i p ment; T e x t i l e s and Fabrics  25  Freight Forwarding; D i s t r i b u t i o n S e r v i c e s and S h i p p i n g ; Warehousing  20  C o n s t r u c t i o n ; R e s e a r c h and Development L a b o r a t o r i e s  15  •  •  100  55';. A p e r s o n a l survey was undertaken  w i t h a Study Group o f f i r m s  chosen from the above Types i n o r d e r to a s c e r t a i n the r e a c t i o n s o f l o c a l management p e r s o n n e l t o the h y p o t h e s i s .  F u r t h e r data o f use t o the  h y p o t h e s i s was a l s o o b t a i n e d (see P a r t A o f t h i s C h a p t e r ) .  Appendix I I  e x p l a i n s the p r o c e s s o f Weight F a c t o r and Study Group s e l e c t i o n ; Appendi x I I I , the Q u e s t i o n n a i r e and the r e a s o n i n g b e h i n d i t ; and Appendix I V , the I n t r o d u c t o r y L e t t e r t h a t was d i s t r i b u t e d t o a l l f i r m s i n the Study Group.  CHAPTER V  QUESTIONNAIRE ANALYSIS  For a d i s c u s s i o n o f the method o f Q u e s t i o n n a i r e t a b u l a t i o n , r e f e r to Appendix V.  A.  A n a l y s i s o f Response  (a) C h a r a c t e r i s t i c s o f f i r m s f a v o u r a b l e t o t h e h y p o t h e s i s From Appendix V, T a b l e 2 i t i s seen t h a t the e i g h t f i r m s i n t h i s P r e f e r e n c e Group were g e n e r a l l y c o r p o r a t i o n s o f l a r g e s i z e , a l t h o u g h i n some cases the l o c a l o f f i c e was r e l a t i v e l y s m a l l .  S i x o f the e i g h t f i r m s  were v e r y l a r g e c o r p o r a t e e n t i t i e s and had t h e i r head o f f i c e s i n o t h e r p a r t s o f the w o r l d . ted  The r e m a i n i n g two, a l t h o u g h l o c a l l y based were o r i e n -  towards markets i n e a s t e r n and mid-western Canada.  A l l firms  imported  n e a r l y 100 p e r c e n t o f t h e i r s t o c k , components, o r b u s i n e s s from o u t s i d e t h e Vancouver M e t r o p o l i t a n A r e a , a l t h o u g h they e x p o r t e d l e s s than f i f t y cent o f t h e i r p r o d u c t o r b u s i n e s s .  I n f i v e c a s e s , e x p o r t s comprised  than t w e n t y - f i v e t o t h i r t y p e r c e n t , and i n t h r e e o f these c a s e s ,  perless  virt-  ually n i l . O n l y two C a t e g o r i e s were r e p r e s e n t e d ; w h o l e s a l e D i s t r i b u t i o n ( s i x ) and D i s t r i b u t i o n ( t w o ) .  One M a n u f a c t u r i n g  o p e r a t i o n i s h e a v i l y concerned other products. t i o n Category  f i r m was i n c l u d e d ; however, i t s  w i t h the w h o l e s a l i n g o f b o t h i t s own and  T h e r e f o r e i t i s i n c l u d e d w i t h i n the w h o l e s a l e  f o r purposes o f a n a l y s i s , 56  w h o l e s a l e Category  Distribu-  Types i n c l u d e d :  57 Auto P a r t s (two m a n u f a c t u r e r ' s r e p r e s e n t a t i v e s ) ; T e x t i l e s ( t h r e e , i n c l u d i n g the w h o l e s a l e - m a n u f a c t u r i n g f i r m ) ; and M a c h i n e r y (one Equipment D i s t r i b u t o r ) .  The  D i s t r i b u t i o n Agency, and one  Industrial  D i s t r i b u t i o n C a t e g o r y i n c l u d e d one A i r F r e i g h t F r e i g h t Forwarding f i r m .  . H a l f o f the f i r m s s i g n i f i e d t h a t the m a j o r i t y of t h e i r goods were s h i p p e d by a i r c a r r i e r .  Use  of t r u c k and r a i l t r a n s p o r t a t i o n was  d i v i d e d amongst the r e m a i n d e r .  S i x f i r m s had a t l e a s t some a f f i l i a t e d  f i r m s o u t s i d e the Study A r e a , a l t h o u g h and E x e c u t i v e  equally  t r a v e l , on the w h o l e , was  their significance varied. fairly  extensive.  Sales  A i r was  the  predominant t r a v e l mode. The p r e s e n t use of a i r f r e i g h t was heavy b a s i s .  One  T e x t i l e f i r m , and  p l e t e l y dependent upon i t . i n v e n t o r y items was  g e n e r a l l y on a r e g u l a r to  the F r e i g h t F o r w a r d i n g f i r m were com-  I n o t h e r c a s e s , however, the b u l k of normal  b r o u g h t i n by o t h e r c a r r i e r s , a i r f r e i g h t b e i n g u t i l -  ized for regularly required the use of a i r f r e i g h t had  'emergency' o r d e r s .  I n v i r t u a l l y a l l cases  i n c r e a s e d c o n s i d e r a b l y i n the p a s t few months.  "(In most cases the companies had  only r e c e n t l y decided  to commit a major  share of t h e i r p r o d u c t d i s t r i b u t i o n to a i r f r e i g h t .  The  from l e s s e n e d  coupled w i t h i n -  creased  s h i p p i n g time and  greater f l e x i b i l i t y ,  savings  derived  customer s e r v i c e were found to o f f s e t the i n i t i a l l y h i g h e r  ping costs.  Increases  i n r a i l and  c i s i o n to s w i t c h to a i r f r e i g h t . )  ship-  t r u c k express r a t e s h a s t e n e d the F u t u r e use of a i r f r e i g h t w i l l  de-  be  extensive. (b) C h a r a c t e r i s t i c s of f i r m s f a v o u r a b l e to the h y p o t h e s i s i n p r i n c i p l e , but possessing c e r t a i n r e s e r v a t i o n s The eleven f i r m s i n t h i s P r e f e r e n c e  Group ranged from s m a l l to  l a r g e , a l t h o u g h medium-sized f i r m s were i n the p l u r a l i t y ( f i v e ) . m a j o r i t y of the f i r m s were l o c a l l y owned ( s e v e n ) .  The  A  four large firms  58 were a l s o those w i t h head o f f i c e s o u t s i d e the Study A r e a . p o r t e d v i r t u a l l y 100 p e r c e n t o f t h e i r p r o d u c t , o u t s i d e the A r e a . i n d i v i d u a l business  A l l firms  s t o c k , or b u s i n e s s  E x p o r t s v a r i e d from f i v e p e r c e n t  im-  from  to n i n e t y p e r c e n t  t o t a l s , the f i r m s b e i n g spread f a i r l y e v e n l y  of  through-  out the spectrum. A l l I n d u s t r i a l C a t e g o r i e s were r e p r e s e n t e d the p r o p o r t i o n s of each were not e q u a l . D i s t r i b u t o r s ; one M a n u f a c t u r e r ; f i r m s i n the M i s c e l l a n e o u s  i n t h i s group, however  I n c l u d e d were: f i v e W h o l e s a l e  two D i s t r i b u t i o n f i r m s ; and  Category.  the  three  W h o l e s a l e D i s t r i b u t i o n Types i n -  c l u d e d : Auto P a r t s ( o n e ) ; E l e c t r i c a l and E l e c t r o n i c ( t w o ) ; and M a c h i n e r y (two).  The  s i n g l e Manufacturing  Type d i v i s i o n .  f i r m was  i n the E l e c t r i c a l and E l e c t r o n i c  I n c l u d e d i n the D i s t r i b u t i o n Category were one A i r F r e i g h t  C a r t a g e f i r m and one Warehousing and D i s t r i b u t i o n f i r m .  The  Miscellaneous  Category i n c l u d e d the two C o n s t r u c t i o n c o r p o r a t i o n s and one E l e c t r o n i c R e s e a r c h and M a n u f a c t u r i n g I n o n l y one  laboratory.  case was  A i r F r e i g h t Cartage f i r m ) .  a i r mentioned as the p r i m a r y R a i l and  d i v i d e d as the major c a r r i e r s . w h o l e s a l e r and  t r u c k were a p p r o x i m a t e l y  Ship t r a n s p o r t was  the Warehousing f i r m ;  carrier  (The  equally  l i s t e d by one  Machinery  Less than h a l f ( f i v e ) o f the f i r m s  had a f f i l i a t e d f i r m s or s a l e s o r g a n i z a t i o n s o u t s i d e the M e t r o p o l i t a n A r e a (but w i t h i n t h e i r a r e a of r e s p o n s i b i l i t y ) . s i d e r e d t h a t the a f f i l i a t e was politan operation.  Executive  O n l y one of these f i v e con-  very important  as compared w i t h the M e t r o -  t r a v e l r e f l e c t e d the h i g h degree o f  o w n e r s h i p , such t r a v e l b e i n g n o n - e x i s t a n t or p e r i o d i c . t i n u o u s ' f o r o n l y one  f i r m of those w i t h head o f f i c e s e l s e w h e r e .  t r i p s were e q u a l l y d i v i d e d between ' p e r i o d i c a l l y ' and T r a v e l mode was  T r a v e l was  a l s o e q u a l l y d i v i d e d between a i r and  local 'conSales  'continuously'. automobile.  59 P r e s e n t use o f a i r f r e i g h t was b i a s e d towards t h e 'emergency o n l y ' c l a s s i f i c a t i o n , a l t h o u g h one f i r m ( A i r F r e i g h t Cartage) was a heavy u s e r , and one o t h e r a r e g u l a r u s e r (Wholesale E l e c t r i c a l Goods).  Two o r t h r e e  f i r m s (one C o n s t r u c t i o n and two Wholesale I n d u s t r i a l M a c h i n e r y )  c o u l d be  c l a s s e d as r e g u l a r u s e r s a t c e r t a i n times o f the y e a r , o r f o r c e r t a i n customers, a l t h o u g h t h e p e r c e n t a g e o f t o t a l p r o d u c t s h i p p e d was s m a l l . Normal i n v e n t o r y r e p l e n i s h m e n t was by r a i l ,  truck, or ship.  Only two  f i r m s s i g n i f i e d a c o n s i d e r a b l e r e c e n t i n c r e a s e i n the use o f a i r f r e i g h t f i v e i n d i c a t i n g l i t t l e o r no change i n r e c e n t months.  In a l l  cases  except  one, t h e f u t u r e use of a i r f r e i g h t was e x p e c t e d t o be s i m i l a r t o p r e s e n t use.  A l t h o u g h t o t a l volume s h i p p e d by a i r was e x p e c t e d t o i n c r e a s e , the  p e r c e n t a g e o f t o t a l p r o d u c t o r s t o c k s h i p p e d was n o t e x p e c t e d t o change. The E l e c t r i c a l M a n u f a c t u r e r i n d i c a t e d g r e a t e r use o f the medium i n f u t u r e , although h i s present r a t e of i n c r e a s e i s low.  (c)  C h a r a c t e r i s t i c s o f f i r m s r e s p o n d i n g u n f a v o u r a b l y to the h y p o t h e s i s A m a j o r i t y o f the t w e l v e f i r m s i n t h i s P r e f e r e n c e Group were  c l a s s i f i e d as l a r g e (seven) a l t h o u g h i n some cases t h e l o c a l o f f i c e was s m a l l o r medium-sized.  Four f i r m s were i n the s m a l l c l a s s i f i c a t i o n . A l l  the l a r g e f i r m s had head o f f i c e s elsewhere i n the w o r l d , whereas the f o u r s m a l l f i r m s were l o c a l l y b a s e d .  Seven o f t h e f i r m s i m p o r t e d n e a r l y 100  p e r c e n t o f t h e i r p r o d u c t o r s t o c k from o u t s i d e the Vancouver M e t r o p o l i t a n Area.  Imports f o r the r e m a i n i n g f i v e ranged from a p p r o x i m a t e l y t e n p e r -  cent to s e v e n t y - f i v e percent.  E x p o r t s , as a p e r c e n t a g e o f t o t a l  sales,  ranged a l m o s t e q u a l l y over the e n t i r e s p e c t r u m — s o m e M a n u f a c t u r i n g f i r m s e x p o r t i n g s e v e n t y - f i v e t o 100 p e r c e n t w h i l e two Wholesale one M a n u f a c t u r i n g , and one D i s t r i b u t i o n f i r m e x p o r t e d v e r y  Distribution, little.  60  The  I n d u s t r i a l Categories  t i o n ; s i x M a n u f a c t u r e r s ; and one  i n c l u d e d were: f i v e Wholesale D i s t r i b u Distribution firm.  Types w i t h i n  the  Wholesale D i s t r i b u t i o n C a t e g o r y i n c l u d e d ; one Auto P a r t s f i r m ; t h r e e t r i c a l and  Elec-  E l e c t r o n i c c o n c e r n s ; and one M a c h i n e r y D i s t r i b u t o r . A l l e x c e p t  two o f the M a n u f a c t u r e r s i n t e r v i e w e d were i n t h i s P r e f e r e n c e  Group.  In-  c l u d e d were two M a c h i n e r y and M e t a l s f i r m s ; two E l e c t r i c a l and E l e c t r o n i c p r o d u c e r s ; and  two T e x t i l e or C l o t h i n g m a n u f a c t u r e r s .  One  p r o d u c e r of  e l e c t r i c a l goods, o r i g i n a l l y i n t e r v i e w e d as a W h o l e s a l e D i s t r i b u t i o n o u t l e t , . w a s i n s e r t e d i n the M a n u f a c t u r i n g C a t e g o r y i n t a b u l a t i o n . found t h a t the w h o l e s a l e company was  It  was  r e a l l y a s m a l l wholly-owned o u t l e t  f o r a medium-sized m a n u f a c t u r i n g p l a n t l o c a t e d i n the same b u i l d i n g . Warehouse D i s t r i b u t i o n S e r v i c e f i r m was bution  the l o n e example from the  Distri-  Category. No  f i r m s s i g n i f i e d t h a t a i r was  Truck and r a i l were u t i l i z e d e q u a l l y . between those p o s s e s s i n g  a p r i m a r y c a r r i e r f o r t h e i r goods. The  f i r m s were d i v i d e d e q u a l l y  no a f f i l i a t e s or o u t s i d e o r g a n i z a t i o n s ,  those c l a i m i n g ' s e v e r a l ' w i t h i n t h e i r s e r v i c e a r e a s . all  A  However, v i r t u a l l y  the l a t t e r l i s t e d t h e i r o u t s i d e a f f i l i a t e s as b e i n g v e r y  i n terms of the t o t a l o p e r a t i o n .  Executive  the l a r g e r e x t e r n a l l y c o n t r o l l e d f i r m s . nature,-with Of  the mode o f t r a v e l e v e n l y  t r a v e l was  and  significant  f a i r l y heavy f o r  S a l e s t r i p s were o f ' p e r i o d i c ' d i v i d e d between a i r and  automobile.  the t w e l v e f i r m s , n i n e l i s t e d t h e i r use of a i r f r e i g h t as  'emergency o n l y , . a n d one 1  f a c t u r e r and  one  regular basis.  as  'never'.  Two  f i r m s , one  E l e c t r o n i c s Manu-  E l e c t r i c a l W h o l e s a l e r p r e s e n t l y u t i l i z e a i r f r e i g h t on W i t h the e x c e p t i o n  of these two,  a  f i r m s i n t h i s Group never  use a i r f r e i g h t f o r normal i n v e n t o r y  items.  i n use was  i s e x p e c t e d to f o l l o w c u r r e n t p r a c t i c e .  acknowledged.  F u t u r e use  In general, l i t t l e  increase  61 (d) P r e f e r e n c e  Groups: d i f f e r e n c e s and  similarities  Study of T a b l e s 2 and 3, Appendix V and brings  to a t t e n t i o n s e v e r a l s i m i l a r i t i e s and  three Preference  Groups.  the p r e c e d i n g  Sections  d i f f e r e n c e s between the  Because the s e l e c t i o n of f i r m s f o r study was  on  a r e p r e s e n t a t i v e r a t h e r than a s c i e n t i f i c a l l y random b a s i s , c l o s e compari s o n i s n o t p o s s i b l e , or i n f a c t , t e n a b l e .  I n a d d i t i o n , the number of  f i r m s i n t e r v i e w e d w i t h i n each Category and Type i s n o t s u f f i c i e n t to allow s t a t i s t i c a l analysis.  Comparisons must, t h e r e f o r e , r e f l e c t  q u a l i t a t i v e n a t u r e of the d a t a , and be g e n e r a l and  the  s p e c u l a t i v e i n charac-  ter . I t may  be of s i g n i f i c a n c e t h a t a l l ' F a v o u r a b l e ' f i r m s were w i t h i n  the w h o l e s a l e D i s t r i b u t i o n and D i s t r i b u t i o n C a t e g o r i e s .  Companies i n  the A u t o . P a r t s and T e x t i l e Type c l a s s i f i c a t i o n s were those a p p e a r i n g most e n t h u s i a s t i c about f u t u r e a i r p o r t l o c a t i o n . t i o n Category declared m a t t e r o f time and s t r o n g l y i n the  Firms i n the D i s t r i b u -  t h a t t h e i r r e - l o c a t i o n a t the a i r p o r t was  f r e i g h t volume.  just a  M o r e o v e r , these two C a t e g o r i e s  'Favourable w i t h R e s e r v a t i o n s '  the  Group.  figured  F i r m s i n the Manu-  f a c t u r i n g Category were a l m o s t unanimous i n t h e i r r e j e c t i o n of the h y p o t h esis.  I t may  a l s o be s i g n i f i c a n t t h a t the most common r e a s o n f o r a  r e j e c t i o n of the h y p o t h e s i s particular service  was  the need to be i n the c e n t r e of  firm's  their  area.  There appears to be a tendency towards f a v o u r a b l e large externally controlled firms. f i r m s were of t h i s d e s c r i p t i o n .  The  I n the  r e a c t i o n by  ' F a v o u r a b l e ' Group s i x o f  r e m a i n i n g two,  although  the  locally  b a s e d , were e x t e r n a l l y o r i e n t e d , as the i m p o r t - e x p o r t responses i n d i c a t e . R e j e c t i o n by l a r g e , e x t e r n a l l y c o n t r o l l e d m a n u f a c t u r i n g f i r m s c o u l d a t t r i b u t e d to the w e i g h t o f p r o d u c t or components (as was  often  be  stated)  62 o r the c o s t o f a i r f r e i g h t f o r a p r o d u c t f o r which be  the time f a c t o r may n o t  important. There appears t o be a c o r r e l a t i o n between ' F a v o u r a b l e '  reaction  to the h y p o t h e s i s and near 100 p e r c e n t i m p o r t o f s t o c k , components, o r b u s i n e s s , p l u s an e x p o r t o f l e s s than f i f t y p e r c e n t o f t o t a l s t o c k , e t c . I t i s n o t known whether t h i s i s a f u n c t i o n o f a c c e p t a n c e business s i g n i f y i n g t h i s  o r o f t h e type o f  acceptance.  There i s a c o r r e l a t i o n between the p r e s e n t use o f a i r c a r r i e r s and w i l l i n g n e s s t o r e c e i v e the h y p o t h e s i s f a v o u r a b l y . pendent on t r u c k o r r a i l a r e i n v e r s e l y  Firms heavily^ de-  correlated.  No c o r r e l a t i o n appears t o e x i s t between degree o f a c c e p t a n c e o f the h y p o t h e s i s and: c o r p o r a t e e x e c u t i v e t r a v e l ; t h e number o f s u p p o r t i n g o r g a n i z a t i o n s o u t s i d e the Study A r e a ; o r t h e s i g n i f i c a n c e o f o u t s i d e affiliates.  I n the above t h r e e c r i t e r i a , a d i v e r g e n c e appears between  the ' F a v o u r a b l e ' and 'Favourable W i t h R e s e r v a t i o n s ' Groups.  However,  t h i s p r o m p t l y r e v e r s e s when the ' U n f a v o u r a b l e ' group i s c o n s i d e r e d .  The  q u a l i t y o f the d a t a does n o t p e r m i t c o n j e c t u r e t h a t , because o f s i m i l a r i t y between p a r t i c u l a r r e s p o n s e s , , ' U n f a v o u r a b l e '  f i r m s c o u l d , i n r e a l i t y , be  ''Favourable' under d i f f e r e n t c o n d i t i o n s o r q u e s t i o n i n g . L i t t l e t r e n d between the P r e f e r e n c e Groupings  can be d i s c e r n e d  i n the f r e q u e n c y o f s a l e s and e x e c u t i v e t r i p s , a l t h o u g h the ' U n f a v o u r a b l e ' Group does d i s p l a y a tendency Groups.  t o t r a v e l l e s s o f t e n than the o t h e r two  A l l t h r e e r e l y e q u a l l y on a u t o m o b i l e and a i r t r a n s p o r t f o r these  trips. There i s a d i s t i n c t c o r r e l a t i o n between P r e f e r e n c e Groups and t h e p r e s e n t degree o f use o f a i r f r e i g h t .  Firms i n t h e ' F a v o u r a b l e ' Group  tended towards r e g u l a r t o heavy use o f a i r f r e i g h t , whereas those i n the .  63 ' U n f a v o u r a b l e ' Group were h e a v i l y w e i g h t e d towards  1  emergency o n l y '  use.  The m i d d l e Group l a y somewhere i n between, w i t h a s l i g h t b i a s perhaps t o wards the  ' U n f a v o u r a b l e ' Group.  Preference  G r o u p i n g and  The  same c o r r e l a t i o n e x i s t e d between  the degree of r e c e n t  increases  in air freight  utilization. There i s a s t r o n g c o r r e l a t i o n between the a n t i c i p a t e d f u t u r e o f a i r f r e i g h t and three Preference  the r e c e p t i o n of the h y p o t h e s i s .  Many f i r m s ^ i n a l l  Groups i n d i c a t e d t h a t f u t u r e use would be s i m i l a r to  p r e s e n t u s e , a l t h o u g h volume would i n c r e a s e as t o t a l b u s i n e s s Nevertheless, d i d occur.  T a b l e 3,.Appendix V i n d i c a t e s t h a t s i g n i f i c a n t  Of  the  ' F a v o u r a b l e ' f i r m s , a l l e x c e p t one  increased. exceptions  i n d i c a t e d that a i r  f r e i g h t would i n c r e a s e as a p e r c e n t a g e of t o t a l c a r r i e r use, and become a r e g u l a r means o f moving c e r t a i n s t o c k i t e m s . were 'Favourable W i t h R e s e r v a t i o n s ' , i n the M i s c e l l a n e o u s future.  I n the  Two  Of  would  the f i r m s  t h r e e , and p o s s i b l y f i v e (two  C a t e g o r y were unsure) s i g n i f i e d i n c r e a s e d use  ' U n f a v o u r a b l e ' Group, o n l y one  p o s s i b l e i n c r e a s e d f u t u r e use, and factors.  use  t h i s was  firms in  of the f i r m s i n d i c a t e d  h i g h l y dependent upon  f i r m s , however, were p r e s e n t r e g u l a r u s e r s , and  i n t e n t i o n of m a i n t a i n i n g  that  seasonal  stated  their  this practice.  I t i s s i g n i f i c a n t t h a t the W h o l e s a l e D i s t r i b u t i o n f i r m s p r e d i c t i n g increased  f u t u r e use of a i r f r e i g h t were t h i n k i n g i n terms o f c e n t r a l  warehouses i n E a s t e r n higher  turnover,  Canada, IBM  computors, d e c r e a s e d l o c a l  and a i r f r e i g h t d i s t r i b u t i o n .  stocks,  This information  the d i s c u s s i o n i n Chapter T l o f t h i s p a p e r , where i t was  supports  illustrated  the most s i g n i f i c a n t c o n t r i b u t i o n o f a i r f r e i g h t i s i n the r e d u c t i o n total distribution  costs.  that of  64 B_. A i r p o r t - O r i e n t e d development, r e s e r v a t i o n s , and r e j e c t i o n s - by P r e f e r e n c e Groups  (a) F i r m s f a v o u r a b l e to the A i r p o r t development  hypothesis:  I n the f o l l o w i n g , b e s i d e s o f the Q u e s t i o n n a i r e  Schedule (see Appendix I I I , p . 1 0 6 ) , a l o n g - t e r m  d u c t i o n i n a i r f r e i g h t r a t e s was accepted  the c o n d i t i o n s c o n t a i n e d i n q u e s t i o n  assumed to be p l a u s i b l e .  as a normal course of events i n any new  transport.  re-  T h i s can  and e v o l v i n g form o f  l a r g e r , and more e f f i c i e n t c a r r i e r s a r e  B o t h o f the D i s t r i b u t o r s  de-  introduced.  of Auto P a r t s d e c l a r e d t h a t , i n the  r u n , p r o x i m i t y to a i r f r e i g h t f a c i l i t i e s  would make a i r p o r t l o c a t i o n  s i r a b l e f o r some p a r t o f t h e i r o p e r a t i o n .  One  x  be  I n f a c t , N o r t h American a i r f r e i g h t r a t e s a r e p r e s e n t l y  c r e a s i n g , as new,  ten  long de-  mentioned a b r a n c h ware-  house f o r r e c e i p t and r e - a l l o c a t i o n o f c o n t a i n e r i z e d cargo shipments o f f a s t moving, h i g h v a l u e p a r t s .  The o t h e r f i r m l i s t e d the a i r p o r t  f o u r t h i n a l i s t of f i v e l o c a t i o n a l determinants but i n d i c a t e d  as  f o r t h e i r main warehouse,  t h a t the importance o f the a i r p o r t would climb as more of  the h i g h volume and h i g h v a l u e p a r t s were r e g u l a r l y c o n t a i n e r - s h i p p e d air.  I t was  emphasized, however, t h a t t r u c k access and p r o x i m i t y to  d e a l e r s were o f p r i m e  concern.  Each o f the t h r e e T e x t i l e w h o l e s a l e  Distribution outlets  the f i r m t h a t i s p a r t m a n u f a c t u r e r and p a r t w h o l e s a l e ) warehouse a t the a i r p o r t would be d e s i r a b l e . directed  by  indicated  these companies.  The  that a  Shipments c o u l d then be r e -  from t h e r e , r a t h e r than from a downtown l o c a t i o n .  the c e n t r a l b u s i n e s s  (including  d i s t r i c t would be n e c e s s a r y ,  Showrooms n e a r  however, f o r two  l o c a t i o n a l f l e x i b i l i t y o f the  of  Wholesaler-Manufacturer  would a l l o w the concern to take advantage o f a i r f r e i g h t (and the  resultant  r e d u c e d i n v e n t o r y and i n c r e a s e d t u r n o v e r ) by a i r p o r t l o c a t i o n o f the  entire  65 operation. The  w h o l e s a l e D i s t r i b u t o r h a n d l i n g i n d u s t r i a l machinery r e c e n t l y  r e l o c a t e d w i t h i n t e n to f i f t e e n m i n u t e s d r i v i n g time of the A l t h o u g h t h i s l o c a t i o n was  airport.  the f i r m ' s second c h o i c e , . u n a n t i c i p a t e d bene-  f i t s i n the form of i n c r e a s e d customer s a t i s f a c t i o n and s e r v i c e have been gained  through p r o x i m i t y to the a i r p o r t .  time-distance  to the a i r p o r t would f i g u r e h e a v i l y i n any  l o c a t i o n a l study. air  The maintenance of a s i m i l a r  One  future re-  f a c t o r m i t i g a t i n g a f u r t h e r i n c r e a s e i n the use  f r e i g h t by t h i s company i s the l a c k of customs c l e a r a n c e a t the  port.  of  air-  T h i s p r o b l e m s h o u l d be a l l e v i a t e d as the t o t a l amount o f f r e i g h t  traffic  increases. The  l a c k of customs c l e a r a n c e . i s the o n l y f a c t o r p r e v e n t i n g  i n t e r v i e w e d E x p r e s s Agency from l o c a t i n g a t the a i r p o r t now.  the  In future  t h i s f i r m a n t i c i p a t e s a r e q u i r e m e n t f o r a s m a l l a i r p o r t ' e x p e d i t i n g ' warehouse, w i t h a p p r o x i m a t e l y  two dozen employees.  The Agency's need i s f o r  good a i r p l a n e to t r u c k t r a n s - s h i p m e n t f a c i l i t i e s , r a t h e r than a warehouse for  i t s own  s a k e . .As soon as a Customs P o r t i s c r e a t e d , a customs ware-  house w i l l become a n e c e s s i t y , and, space f o r b r o k e r s , and  according  shipping f a c i l i t i e s  to t h i s f i r m , so w i l l  f o r cartage  companies.  quirement w i l l a l s o be c r e a t e d f o r an a i r f r e i g h t t e r m i n a l , as was c a s t i n s e v e r a l c i t i e s mentioned i n Chapter I I I ) . The f i r m was  devoted e n t i r e l y to a i r f r e i g h t .  office (A r e fore-  F r e i g h t Forwarding  A need p r e s e n t l y e x i s t s f o r an  a i r p o r t warehouse, i n o r d e r t h a t d o c u m e n t a t i o n , b i l l i n g , . c o n s o l i d a t i o n , and d i s p a t c h o f consignments can be c a r r i e d out i n a more e f f i c i e n t manner. The  firm's present  f a c i l i t i e s r e q u i r e t h a t cargo be  town warehouse and r e - d i s t r i b u t e d from t h e r e .  t r a n s p o r t e d to a down-  T h i s method i s w a s t e f u l  time and r e s o u r c e s , and p a r t i a l l y n e g a t e s the speed of the a i r c a r r i e r .  of  66 (b) R e s e r v a t i o n s of f i r m s g i v i n g c o n d i t i o n a l of the h y p o t h e s i s The  firms  acceptance  i n t h i s P r e f e r e n c e Group agreed i n p r i n c i p a l w i t h  p o s s i b i l i t y of f u t u r e r e - l o c a t i o n on or near Vancouver A i r p o r t . t i o n s were t e n d e r e d , however, t h a t were i n a d d i t i o n assumed t o be  to the  Many r e s e r -  changes i n the o p e r a t i o n s of the f i r m s  s e l v e s b e f o r e a i r p o r t l o c a t i o n c o u l d be f e a s i b l e . alterations required  Reserva-  conditions  i n e f f e c t i n q u e s t i o n t e n of the Q u e s t i o n n a i r e .  vations r e f e r r e d to required  the  i n the a i r f r e i g h t medium.  Other r e f e r r e d  them-  to  These l a t t e r changes  were judged by the w r i t e r a s . b e i n g a p a r t from the normal e v o l u t i o n a r y c e s s e s a s s o c i a t e d w i t h a growing t r a n s p o r t a t i o n  pro-  industry.  I n the W h o l e s a l e D i s t r i b u t i o n C a t e g o r y , the Auto P a r t s  Distributor  s t a t e d t h a t he w o u l d have t o s w i t c h t o a g r e a t e r p e r c e n t a g e of more v a l u a b l e items b e f o r e he c o u l d c o n s i d e r a i r p o r t l o c a t i o n . would, however, be a t t r a c t i v e i f t r u c k i n g were e s t a b l i s h e d  nearby.  (This  airport  site  t e r m i n a l s or an i n d u s t r i a l a r e a  i s an i l l u s t r a t i o n of secondary g e n e r a t i o n  of development i n d u c e d i n i t i a l l y by the a i r p o r t . secondary development to the community was One  An  The  s i g n i f i c a n c e of  discussed i n Chapter I ) .  E l e c t r o n i c D i s t r i b u t o r stated that a l o c a t i o n c e n t r a l to  v a r i o u s m e t r o p o l i t a n a r e a customers was c r i t e r i o n , and  t h a t a l t h o u g h the use  such  h i s most i m p o r t a n t  the  locational  of a i r f r e i g h t was  expected to i n -  c r e a s e r a p i d l y i n f u t u r e , a i r p o r t l o c a t i o n would not be  f e a s i b l e unless  the f a c i l i t y became c e n t r a l l y l o c a t e d  i n the M e t r o p o l i t a n A r e a .  However,  a l o c a t i o n w i t h i n f i f t e e n to twenty m i n u t e s d r i v e of the a i r p o r t i s necessary.  The  o t h e r E l e c t r o n i c D i s t r i b u t o r i n t h i s Group c o n s i d e r e d  t h a t a l o c a t i o n c l o s e t o the f i r m ' s e s s e n t i a l (The  firm i s presently  b o t h major s u p p l i e r s  t o the  expanding F r a s e r V a l l e y c l i e n t e l e  located  l a t t e r are  i n New  located  Westminster).  In  was  addition,  i n e a s t e r n Canadian c i t i e s  67 t h a t a r e e i t h e r w i t h o u t an a i r p o r t , or on a r e s t r i c t e d a i r l i n e s e r v i c e schedule. Of the companies i n the M a c h i n e r y Type c l a s s i f i c a t i o n , one  stated  t h a t p r o x i m i t y to the a i r p o r t would serve as a ' t i e - b r e a k e r ' between s u i t a b l e s i t e s , a s - l o n g as M e t r o p o l i t a n highway a c c e s s was s i t e s under c o n s i d e r a t i o n . are a l s o n e c e s s a r y .  excellent for a l l  B e t t e r a i r p o r t customs c l e a r a n c e  T h i s f i r m was  c o r p o r a t e a i r c r a f t a t the p r e s e n t  the o n l y one time.  "indispensable':' to t h e i r o p e r a t i o n .  The  procedures  i n t e r v i e w e d w h i c h owns a  a i r c r a f t was  termed as  being  A l t h o u g h the f i r m would l i k e to be  near the A i r p o r t , i t c o u l d do so o n l y i f a major t r u c k r o u t e to i t s mark e t s p a s s e d c l o s e by.  The  o t h e r f i r m i n t h i s Type c o n s i d e r e d  airport  l o c a t i o n as a d i s t i n c t p o s s i b i l i t y i n t e n to f i f t e e n y e a r s t i m e , but if  the M e t r o p o l i t a n A r e a has  the a i r p o r t .  expanded c o n s i d e r a b l y around the v i c i n i t y  I t i s e s s e n t i a l that t h i s D i s t r i b u t o r ' s  to i n d u s t r i a l a r e a s , . i n o r d e r  only  l o c a t i o n be  t h a t time devoted to goods p i c k - u p  of  central by  customers can be m i n i m i z e d . The  E l e c t r i c a l f i r m i n the M a n u f a c t u r i n g  Category agreed t h a t an  a i r p o r t s i t e would be an e f f e c t i v e ' t i e - b r e a k e r ' between s i t e s of attractiveness.  However, growth i n the M e t r o p o l i t a n A r e a around the  port i s f i r s t required. tial.  equal air-  C e n t r a l l o c a t i o n f o r customer s e r v i c e i s e s s e n -  P r o x i m i t y to the a i r p o r t i s as i m p o r t a n t  f o r corporate  t r a v e l as  f o r the use of a i r f r e i g h t . I n the D i s t r i b u t i o n C a t e g o r y , the A i r F r e i g h t C a r t a g e company e x p l a i n e d t h a t a downtown warehouse would be more b e n e f i c i a l i n terms of their t o t a l operation.  An a i r p o r t warehouse would be b u i l t o n l y i f the  f i r m ' s share o f the t o t a l Vancouver a i r f r e i g h t tonnage i n c r e a s e d , or i f the company a c q u i r e d  the f r e i g h t agency f o r l a r g e r a i r l i n e s .  The Ware-  68 house and  D i s t r i b u t i n g S e r v i c e f i r m would l o c a t e a b r a n c h a t the a i r p o r t  o n l y i f the p e r c e n t a g e of h i g h - v a l u e i s increased  considerably  m a n u f a c t u r e d goods h a n d l e d by  over what i t i s today.  them  B u l k commodities such as  the f o o d s t u f f s p r e s e n t l y h a n d l e d do n o t l e n d themselves to a i r f r e i g h t , e x c e p t i n cases of.emergency. I n the M i s c e l l a n e o u s  Category, both Construction  firms indicated  t h a t a l o c a t i o n w i t h i n a p p r o x i m a t e l y t e n to f i f t e e n m i n u t e s d r i v i n g time of the a i r p o r t i s d e s i r a b l e ( p r i m a r i l y because of the amount o f t r a v e l involved i n their business).  However, l a n d c o s t s f o r a c o n s t r u c t i o n  must be as low as p o s s i b l e , thus l o c a t i o n i n c l o s e p r o x i m i t y  air-  p o r t i s not f e a s i b l e .  One  from the a i r p o r t .  o t h e r , a l t h o u g h l o c a t e d t h i r t y to t h i r t y - f i v e min-  The  f i r m i s now  to the  yard  l o c a t e d on a s i d e r o a d , ten m i n u t e s  u t e s away, d i d c o n s i d e r a c o n v e n i e n t s i t e a p p r o x i m a t e l y one m i l e from airport.  I t was  r e j e c t e d , however, because o f h i g h l a n d c o s t .  Much de-  pends a l s o on the l o c a t i o n o f c o n s t r u c t i o n p r o j e c t s u n d e r t a k e n by firms.  Some p r o j e c t s may  r e q u i r e , v e r y l i t t l e t r a v e l , others a 7  the  these  considerable  amount, i n c l u d i n g the use of a i r f r e i g h t . The  E l e c t r o n i c Research Laboratory  was  i n the p r o c e s s of r e -  l o c a t i n g i n the same a r e a i n which i t i s p r e s e n t l y e s t a b l i s h e d .  It  was  a f f i r m e d , h o w e v e r , . t h a t i f a l l o t h e r f a c t o r s were e q u a l , the a i r p o r t would be c o n s i d e r e d  as a t i e - r b r e a k i n g f a c t o r i n a c h o i c e between s i t e s .  e x p e d i t i n g of c o r p o r a t e  t r a v e l would be  The  the p r i m a r y c o n s i d e r a t i o n i n such  a decision. (c) F i r m s u n f a v o u r a b l e to the h y p o t h e s i s : reasons f o r i n a p p l i c a b i l i t y I n the w h o l e s a l e D i s t r i b u t i o n C a t e g o r y , the Auto P a r t s f i r m r e j e c t e d the h y p o t h e s i s  on the b a s i s o f s e r v i c e a r e a .  I t was  stated  that  69 customers are u s u a l l y w i t h i n f i v e m i l e s of the e s t a b l i s h m e n t , thus l o c a t i o n i n h e a v i l y b u i l t - u p areas i s e s s e n t i a l .  The  t h a t b u s i n e s s changed too r a p i d l y to p e r m i t one  o p i n i o n was  tendered  to l o o k as f a r ahead as  the h y p o t h e s i s demands. The  t h r e e E l e c t r i c a l and  E l e c t r o n i c firms  i n t h i s Category gave  t h r e e d i f f e r e n t reasons f o r r e j e c t i o n of the h y p o t h e s i s . of v a r i o u s l i n e s of e l e c t r i c a l goods and  A  appliances stated  Distributor categorically  t h a t the a i r p o r t would be a most i l l o g i c a l p l a c e to l o c a t e , as i t y of customers are customers was  i n the downtown a r e a .  paramount.  (This  Convenience f o r  firm i s a regular  the major-  regular  u s e r of a i r f r e i g h t ) .  Another f i r m , a manufacturer's D i s t r i b u t o r f o r e l e c t r o n i c p r o d u c t s , stated  t h a t a i r p o r t l o c a t i o n would not make any  difference  t i o n , as a l l goods were c o n s i g n e d d i r e c t l y to the factory  i n Toronto.  No  l o c a t i n g n e a r the a i r p o r t .  The  the  m a i n t a i n e d . .An  in-  the o n l y i n c e n t i v e  for  t h i r d f i r m , a manufacturer's D i s t r i b u t o r  o f i n d u s t r i a l e l e c t r i c a l goods, s t a t e d applicable  customer from  a p p r e c i a b l e l o c a l s t o c k was  c r e a s e i n a i r c r a f t e l e c t r o n i c s b u s i n e s s would be  to i t s o p e r a -  that a i r p o r t l o c a t i o n i s  not  to i t s o p e r a t i o n , as a i r f r e i g h t i s seldom u t i l i z e d .  f i r m ' s p r o d u c t i s heavy and or auto p a r t s , few  s m a l l and  of r e l a t i v e l y low v a l u e .  The  U n l i k e machinery  v a l u a b l e spare p a r t s are r e q u i r e d - - t h e  p i e c e of machinery b e i n g r e p l a c e d when t r o u b l e  i s found.  Heavy p r o d u c t w e i g h t (as compared w i t h v a l u e ) was r e j e c t i o n by a M a c h i n e r y f i r m .  entire  the r e a s o n f o r  A i r f r e i g h t c o s t s were p i c t u r e d  as  being  a s t r o n o m i c a l when compared w i t h the v a l u e of the p r o d u c t , thus the medium i s seldom u s e d .  A i r p o r t l o c a t i o n would t h e r e f o r e ,  I f r e - l o c a t i o n were n e c e s s i t a t e d , to heavy i n d u s t r i e s , as  the  the l a t t e r are  have l i t t l e  benefit.  f i r m would move to an a r e a t h e i r main customers.  central  Corporate  70 t r a v e l i s n o t o f s u f f i c i e n t magnitude t o be r e g a r d e d as a l o c a t i o n a l criterion. In the Manufacturing Category, both firms manufacturing Machinery (Industrial material)  s t a t e d t h a t s i n c e the w e i g h t o f t h e i r p r o d u c t s was  such t h a t a i r f r e i g h t was i m p r a c t i c a l , a i r p o r t l o c a t i o n h e l d l i t t l e tage f o r them, u n l e s s  advan-  t h e i r customers l o c a t e d t h e r e a l s o .  One E l e c t r i c a l goods m a n u f a c t u r e r h e l d much the same o p i n i o n as the above f i r m s , a l t h o u g h n o i s e was c o n s i d e r e d mental f a c t o r .  t o be an a d d i t i o n a l d e t r i -  A p r o d u c e r o f h i g h q u a l i t y E l e c t r o n i c components s t a t e d  t h a t a l t h o u g h t h e f i r m ' s use o f a i r f r e i g h t was e x t e n s i v e , a i r p o r t l o c a t i o n p r e s e n t e d few a t t r a c t i o n s .  Shipping  c o s t s comprise such a s m a l l  pro-  p o r t i o n ( l e s s than one p e r c e n t ) o f t o t a l c o s t s t h a t l o c a t i o n a l demands a r e very f l e x i b l e .  Other f a c t o r s such as t h e a v a i l a b i l i t y o f a s u i t a b l e l a b o u r  f o r c e and p r o x i m i t y  t o customers, a r e o f p r i m a r y c o n c e r n .  One T e x t i l e m a n u f a c t u r e r ( c l o t h i n g ) a l s o h e l d t h a t the a v a i l a b i l ity  of a s u i t a b l e labour force i s of f i r s t importance.  A requirement f o r  s k i l l e d female l a b o u r n e c e s s i t a t e s a c e n t r a l c i t y l o c a t i o n .  A l t h o u g h the  f i r m i s a s e a s o n a l l y heavy u s e r o f a i r f r e i g h t , t h i s a l o n e was n o t o f s u f f i c i e n t i m p o r t a n c e to w a r r a n t c o n s i d e r a t i o n o f an a i r p o r t s i t e . other T e x t i l e f i r m ( c l o t h i n g ) stated that proximity guiding l o c a t i o n a l c r i t e r i o n . in  The  t o customers i s the  S i n c e a m a j o r i t y o f the f i r m ' s a c c o u n t s a r e  the c e n t r a l b u s i n e s s d i s t r i c t , p l a n t l o c a t i o n must f o l l o w s u i t . The Warehouse and D i s t r i b u t i o n f i r m , a l t h o u g h a c k n o w l e d g i n g t h e  relevance  o f , and f u t u r e f o r a i r f r e i g h t - i n d u c e d warehousing a t the a i r -  p o r t , d i d not b e l i e v e that a small operator locate.  such as themselves c o u l d so  R a t h e r , a warehouse c e n t r a l l y l o c a t e d f o r t r u c k , r a i l ,  s h i p i s more f e a s i b l e .  a i r and  However, t h e o p i n i o n was tendered t h a t l a r g e r D i s -  t r i b u t i n g concerns c o u l d w e l l l o c a t e b r a n c h warehouses a t the  various  terminals.  towards  The  company's p r e s e n t o p e r a t i o n  r a i l - s h i p transhipment f u n c t i o n .  i s heavily biased  L i t t l e change i s f o r e c a s t .  the  CHAPTER V I  APPRAISALS AND CONCLUSIONS: SUGGESTIONS FOR FURTHER STUDY  A.  A p p r a i s a l o f methodology; sources of e r r o r  (a) S e l e c t i o n o f Study Group The method o f s e l e c t i o n o f t h e f o r t y f i r m s t o be i n t e r v i e w e d was the most a r b i t r a r y f a c t o r i n t h i s paper.  S e l e c t i o n was n o t random, and  the c r i t e r i a g o v e r n i n g t h e e s t a b l i s h m e n t o f t h e u n i v e r s e were n o t s c i e n t i f i c a l l y determined  (see Appendix I I ) .  R e g a r d l e s s o f these  shortcomings,  the amount o f time a v a i l a b l e f o r t h e s t u d y and t h e number o f i n t e r v i e w s c o n s i d e r e d n e c e s s a r y t o i l l u s t r a t e t h e h y p o t h e s i s n e c e s s i t a t e d and j u s t i f i e d the shortcuts taken.  O b s e r v a t i o n s and c o n c l u s i o n s t a k e n from  the s u r v e y d a t a a r e t e n t a t i v e o n l y , and r e f l e c t t h e a r b i t r a r y of  selection  respondents. The n a t u r e o f t h e i n v e s t i g a t i o n l e a d i n g up t o s e l e c t i o n o f the  Study Group i s c o n s i d e r e d t o be s c i e n t i f i c a l l y v a l i d .  A reasoned, . l o g i c a l  p r o c e s s was f o l l o w e d - - t h a t i s , from a g e n e r a l d i s c u s s i o n o f t h e r o l e o f the a i r p o r t i n t h e community, through an e v a l u a t i o n o f t h e c h a r a c t e r i s t i c s of f r e i g h t and passenger  c a r r i e r s u s i n g the a i r p o r t to a review of the  c o m b i n a t i o n o f a i r p o r t s and c a r r i e r s as i t i s a f f e c t i n g i n d u s t r i a l  location  i n the United S t a t e s .  S e l e c t i o n o f t h e i n d u s t r i e s r e l e v a n t t o t h e hypo-  t h e s i s then f o l l o w e d .  Amendment o f a l i s t o f t h e i r i n d u s t r i e s was a  l o g i c a l and c o n s i s t e n t n e x t s t e p .  A generic  l i s t c o u l d n o t be a p p l i e d t o  a s p e c i f i c Case Study A r e a ; many o f t h e t y p e s o f f i r m s i n c l u d e d i n t h e C h a p t e r I I I l i s t were o f n e g l i g i b l e importance i n t h e Vancouver M e t r o p o l i t a n Area..  Therefore,  C h a p t e r IV was devoted t o t h e a l t e r a t i o n and a b b r e v i a t i o n  of t h e a p p l i c a b l e Types and C a t e g o r i e s  of f i r m s .  The amended l i s t o f  I n d u s t r i a l C a t e g o r i e s , Types and Weight F a c t o r s , e s t a b l i s h e d i n t h e f i n a l s e c t i o n o f C h a p t e r IV, i s r e g a r d e d as b e i n g  scientifically  valid.  S e l e c t i o n o f t h e u n i v e r s e f r o m t h e 'Yellow Pages' o f t h e Vancouver M e t r o p o l i t a n Telephone D i r e c t o r y i s n o t c o n s i d e r e d c u l a r l y s c i e n t i f i c method (see Appendix I I ) .  to c o n s t i t u t e a p a r t i -  I t was n o t p o s s i b l e t o o b t a i n  a f u l l a p p r e c i a t i o n o f t h e Types o f f i r m s i n c l u d e d under t h e v a r i o u s i i betical listings. for  The l i s t i n g o f " E l e c t r i c a l w h o l e s a l e r s  alpha-  and M a n u f a c t u r e r s " ,  example, i n c l u d e d f i r m s t h a t were b o t h r e l e v a n t and i r r e l e v a n t .  Some  f i r m s d i s t r i b u t e d o r manufactured h i g h v a l u e goods t h a t c o u l d be economic a l l y s h i p p e d by a i r ; o t h e r s h a n d l e d r e l a t i v e l y low v a l u e goods. Telephone D i r e c t o r y t h e r e was o f t e n no way o f d e t e r m i n i n g value.  From t h e  t h i s product  I n a d d i t i o n , names o f f i r m s o f t e n d i d n o t convey whether t h e  i n d i v i d u a l f i r m was a m a n u f a c t u r e r o r a w h o l e s a l e r .  I n many c a s e s ,  personal  knowledge was employed t o determine s u i t a b i l i t y ; i n o t h e r s , d e s c r i p t i v e and a d v e r t i s i n g d a t a , and name and s i z e o f f i r m were used ( t h e s i z e o f p r i n t i n g i n a d v e r t i s i n g o r l i s t i n g was a c c e p t e d as r e p r e s e n t i n g t h e s i z e o r a c t i v i t y of i n d i v i d u a l f i r m s ) .  I f a s c i e n t i f i c survey i s t o be c a r r i e d o u t ,  and t h e Telephone D i r e c t o r y i s t o be used t o e s t a b l i s h t h e u n i v e r s e , a short  then  ' d o o r - t o - d o o r ' p r e l i m i n a r y survey would be r e q u i r e d t o d e f i n i t e l y  e s t a b l i s h t h e s u i t a b i l i t y ( a s determined by t h e s e l e c t i o n c r i t e r i a i n Appendix I I , p.2.) o f a l l t h e f i r m s i n t h e chosen u n i v e r s e .  Although a  ' w i n d s h i e l d survey' was c a r r i e d out on t h e f o r t y s e l e c t e d f i r m s i n o r d e r  74 to] e s t a b l i s h t h e i r s u i t a b i l i t y before  f o r i n t e r v i e w , a more e x t e n s i v e  t h e sample i s drawn would be r e q u i r e d i n f u t u r e .  survey  As has been s t a t e d  i n C h a p t e r V and A p p e n d i x V, f i v e f i r m s were found t o be somewhat d i f f e r e n t i n character  t h a n had been determined i n t h e ' w i n d s h i e l d  survey'.  R e g a r d l e s s o f t h e s e s h o r t c o m i n g s , however, t h e use o f t h e Telephone D i r e c t o r y i n t h e manner d e s c r i b e d of i n v e s t i g a t i o n c o n s i d e r e d  i n Appendix I I was adequate f o r t h e l e v e l  p r a c t i c a b l e i n t h i s paper.  A q u i c k , comprehen-  s i v e , and e a s i l y a v a i l a b l e source was needed, and t h e Telephone D i r e c t o r y f i l l e d these requirements.  The c r i t e r i a adopted f o r u n i v e r s e  are a l s o a c c e p t e d as b e i n g v a l i d . t i o n and d e t e r m i n a t i o n  selection  F o r purposes o f t h e survey the a p p l i c a -  o f t h e s t a n d a r d s w i t h i n these c r i t e r i a were made  q u a l i t a t i v e and s u b j e c t i v e , r a t h e r than q u a n t i t a t i v e and o b j e c t i v e . create a s c i e n t i f i c a l l y - d e r i v e d universe,  To  a knowledge o f a l l d e t a i l s  w i t h i n t h e c r i t e r i a themselves i s r e q u i r e d , r a t h e r than d i f f e r e n t c r i t e r i a . The number o f f i r m s s c h e d u l e d f o r i n t e r v i e w ( f o r t y ) was t o be the maximum a l l o w a b l e w i t h i n t h e a l l o t t e d t i m e .  considered  However, t o o b t a i n  d e f i n i t i v e o p e r a t i o n a l r e s u l t s , a t r u e sample would be c o n s i d e r a b l y The  survey u n d e r t a k e n f o r t h i s paper served as a p i l o t  e s t a b l i s h the relevance In a d d i t i o n , valuable  larger.  study t o  o f t h e concept o f a i r p o r t i n d u s t r i a l l o c a t i o n .  i n s i g h t i n t o t h e problems f o r s e e n by i n d u s t r y was  g a i n e d from d i s c u s s i o n w i t h t h e persons i n c o n t r o l o f t h e Types o f f i r m s most l i k e l y so t o l o c a t e .  Methodological  problems can be t h e r e f o r e  deter-  mined and e r a d i c a t e d , and g u i d e l i n e s e s t a b l i s h e d f o r a l a r g e r and more d e f i n i t i v e study t o f o l l o w . substantive  The l a r g e r study, s t r u c t u r e d so as t o p r o v i d e  d a t a f o r l a n d use p r e d i c t i o n , would be c a r r i e d out w i t h a  sample c o n s t r u c t e d  i n t h e f o l l o w i n g manner:  75 i ) A u n i v e r s e of f i r m s of the chosen C a t e g o r i e s and Types would be c r e a t e d from l i s t i n g s i n the Telephone D i r e c t o r y . The c r i t e r i a s t a t e d i n A p p e n d i x I I would be a p p l i e d to reduce the u n i v e r s e . A knowledge of the o p e r a t i o n of each f i r m would be r e q u i r e d , and t h u s a s h o r t p r e l i m i n a r y survey of the f i r m s t h e m s e l v e s , or of some p u b l i c a t i o n o f f e r i n g such d a t a would be c a r r i e d out; i i ) Because of the knowledge p r o v i d e d by the p i l o t s t u d y , the W h o l e s a l e D i s t r i b u t i o n and" D i s t r i b u t i o n C a t e g o r i e s would r e c e i v e more c o n s i d e r a t i o n t h a n i n the P i l o t S t u d y i n the a l l o c a t i o n of w e i g h t f a c t o r s t o the f o u r I n d u s t r i a l C a t e g o r ies. I n s i m i l a r f a s h i o n , the remainder of the c r i t e r i a s t a t e d i n P a r t B (b) of t h i s C h a p t e r would be i n c o r p o r a t e d i n the c r i t e r i a f o r s e l e c t i n g the u n i v e r s e ; i i i ) A l l o c a t i o n of w e i g h t f a c t o r s f o r the v a r i o u s Types w i t h i n each C a t e g o r y w o u l d f o l l o w the same c o n s i d e r a t i o n s as s t a t e d i n A p p e n d i x I I (page 3 ) ; i v ) A s t r a t i f i e d , w e i g h t e d sample of a p p r o x i m a t e l y 100 ( t w e n t y - f i v e p e r c e n t of an e s t i m a t e d u n i v e r s e of 400) would then be randomly drawn. A l a r g e sample w o u l d e l i m i n a t e the need f o r the a d d i t i o n a l l i m i t i n g f a c t o r s s t a t e d i n A p p e n d i x I I , (page 4 ) . I t i s s t r e s s e d t h a t r e g a r d l e s s of the s c i e n t i f i c s h o r t c o m i n g s of the method employed i n s e l e c t i n g t h e Study Group, the o b j e c t i v e of g a t i n g the h y p o t h e s i s any n o n - a v i a t i o n air  was  fulfilled.  The  i n t e n t i o n was  investi-  t o determine whether  f i r m s i n the Case Study A r e a , of Types known to u t i l i z e  f r e i g h t or c o r p o r a t e  t r a v e l e x t e n s i v e l y or to l o c a t e near a i r p o r t s  e l s e w h e r e , w o u l d r e g a r d p r o x i m i t y t o Vancouver I n t e r n a t i o n a l A i r p o r t as factor i n site selection.  Thus i t was  d e s i r a b l e to i n t e r v i e w only  firms  r e p r e s e n t a t i v e of t h o s e I n the Case Study A r e a t h a t c o u l d be f a v o u r a b l e the h y p o t h e s i s .  to  I n a d d i t i o n , the method of s e l e c t i o n adopted s h o u l d have  produced a Study Group r e p r e s e n t a t i v e of the l o c a l economy. l o g y adopted f u l f i l l e d b o t h of t h e s e r e q u i r e m e n t s . t h e s i s was  a  The  The  methodo-  f a c t t h a t t h e hypo-  shown t o have some v a l i d i t y i t s e l f endorses the methodology, as  some p o s i t i v e r e a c t i o n s were f o r t h c o m i n g . r e q u i r e d i n o r d e r t o c a l c u l a t e the e x t e n t  A s c i e n t i f i c s t u d y would now  be  of the d e s i r e f o r a i r p o r t l o c a t i o n .  76 (b) V a l i d i t y o f q u e s t i o n n a i r e and i n t e r v i e w method As had been e x p e c t e d ,  each respondent was capable  of answering a l l  q u e s t i o n s from p e r s o n a l knowledge o f h i s f i r m ' s o p e r a t i o n .  S i m i l a r l y , the  i n t e r v i e w e r was j u s t i f i e d i n h i s d e s i r e t o i n t e r v i e w o n l y t o p m a n a g e r i a l personnel.  I t was apparent t h a t o n l y i n d i v i d u a l s a t t h i s l e v e l c o u l d t h i n k  c o n c l u s i v e l y i n terms o f a f i r m ' s t o t a l o p e r a t i o n , and t h e e f f e c t s on t h a t o p e r a t i o n o f v a r i o u s p l a n t l o c a t i o n s and t y p e s o f c a r r i e r s . The use o f appointments f o r i n t e r v i e w s was found t o be t h e most s a t i s f a c t o r y method.  The o r i g i n a l i n t e n t was t o engage i n 'happenstance*  i n t e r v i e w s ; however, a h i g h degree o f postponements due t o t h e p r e s s o f b u s i n e s s on r e s p o n d e n t s l e d t o t h e d e c i s i o n t o make a p p o i n t m e n t s . The  Questionnaire  degree o f a c c u r a c y or r e p h r a s e d  Schedule was found t o be s a t i s f a c t o r y f o r the  required.  Question  t h r e e c o u l d have been e l i m i n a t e d  (see A p p e n d i x I I I , Q u e s t i o n n a i r e ) , as i n most cases t h e respon-  dent d i d n o t u n d e r s t a n d t h e q u e s t i o n u n t i l t h e i n t e r v i e w e r e l a b o r a t e d upon it.  Responses t o t h i s q u e s t i o n were i n c o n c l u s i v e , n e v e r t h e l e s s .  t i v e boxes c o u l d have been u t i l i z e d f o r q u e s t i o n s (c) .  Quantita-  such as 5 ( b ) , 6 ( a ) and  I n most cases answers g i v e n t o these q u e s t i o n s by r e s p o n d e n t s were  i n a numerical  form.  During  t a b u l a t i o n i t was n e c e s s a r y  to interpret  these f i g u r e s , compare them w i t h a l l r e s p o n s e s t o these q u e s t i o n s , and e s t a b l i s h standards  f o r t h e r e s p e c t i v e boxes.  The v a l i d i t y o f r e s p o n s e s t o Q u e s t i o n Approximately  f o r t y percent  o f t h e managers i n t e r v i e w e d had o b v i o u s l y  g i v e n t h e m a t t e r some t h o u g h t , and p r e s e n t e d against the hypothesis.  10 v a r i e d t o some e x t e n t .  p l a u s i b l e arguments f o r o r  The r e s p o n s e s o f those who a p p a r e n t l y had n o t  c o n s i d e r e d a i r p o r t i n d u s t r i a l l o c a t i o n were s c a t t e r e d e v e n l y throughout the t h r e e P r e f e r e n c e Groups.  Thus, no b i a s was i n d u c e d by v a r i a t i o n s i n t h e  77 degree o f p r e v i o u s a t t e n t i o n g i v e n by respondents  to the hypothesis.  B.. V a l i d i t y o f t h e h y p o t h e s i s  (a) Review o f h y p o t h e s i s and major assumptions I n Chapter  I i t was s t a t e d t h a t a i r p o r t s i n g e n e r a l a r e n o t b e i n g  r e g a r d e d by many c i v i c o f f i c i a l s as a n y t h i n g more than p l a c e s f o r t h e movement and s t o r a g e o f a i r c r a f t .  The a i r p o r t ' s r o l e as a major g e n e r a t o r o f  u r b a n development i s o f t e n e i t h e r o v e r l o o k e d o r u n d e r e s t i m a t e d and a i r l i n e o p e r a t o r s .  by p l a n n e r s  A comparison was drawn between a i r p o r t s and o l d e r  t e r m i n a l s , such as those f o r r a i l and s h i p o p e r a t i o n s .  I n t h e same manner  t h a t these t e r m i n a l s had i n f l u e n c e d u r b a n development i n t h e p a s t , t h e a i r p o r t c o u l d be e x p e c t e d  t o do so i n t h e f u t u r e .  Airport-induced industrial  l o c a t i o n as one v e r y i m p o r t a n t a s p e c t o f urban growth was, t h e r e f o r e , t o be studied.  A h y p o t h e s i s was then  promulgated.  THAT AS THE MAJOR AIRPORT EVOLVES INTO A PASSENGER AND FREIGHT TERMINAL, CERTAIN TYPES OF INDUSTRIAL ESTABLISHMENTS OTHER THAN THOSE DIRECTLY CONCERNED WITH AVIATION, WILL DESIRE LOCATIONS ON OR NEAR THE AIRPORT SITE. A d e s c r i p t i o n o f a i r f r e i g h t (and i t s advantages f o r c e r t a i n  products  over s u r f a c e c a r r i e r s ) and c o r p o r a t e a i r t r a v e l was c a r r i e d out i n Chapter II.  A method was d e s c r i b e d by w h i c h a f i r m ' s d i s t r i b u t i o n c o s t s c o u l d be  reduced by t h e use o f a i r f r e i g h t .  The e f f e c t s o f such c o s t - c u t t i n g on a  p o s s i b l e p l a n t s i t e l o c a t i o n were then o u t l i n e d .  Benefits accruing to  i n d u s t r y through t h e use o f c o r p o r a t e a i r t r a v e l were i l l u s t r a t e d .  I t was  found t h a t a i r p o r t l o c a t i o n by f i r m s u s i n g e i t h e r o r b o t h o f t h e above maximized t h e r e s u l t i n g b e n e f i t s . I n Chapter  I I I t h e commodities p r e s e n t l y b e i n g c a r r i e d by a i r  f r e i g h t were d e s c r i b e d .  The movement o f these commodities was r e l a t e d t o  78 the v a r i o u s m e t r o p o l i t a n a r e a s i m p o r t i n g or e x p o r t i n g them. C h a r a c t e r i s t i c s of p r o d u c t s shipped by a i r such as a h i g h r a t i o of v a l u e t o w e i g h t , p e r i s h a b i l i t y , or d e s i r a b i l i t y , were made a p p a r e n t .  For corporate  air travel,  r a n k i n g of f i r m s by  established.  S p e c i f i c examples  ' p r o p e n s i t y t o t r a v e l ' was  were quoted of a i r p o r t l o c a t i o n by i n d u s t r i e s w h i c h e i t h e r u t i l i z e d , b u t e d or produced items s h i p p e d by a i r , or r e q u i r e d e x t e n s i v e travel.  The h y p o t h e s i s  c i t i e s i n the  was  corporate  USA. i n the f i r s t t h r e e C h a p t e r s , a l i s t  i n d u s t r i a l c a t e g o r i e s was  of f i r m s c o n s i d e r e d Study.Area.  distri-  t h e r e f o r e shown t o have some v a l i d i t y i n c e r t a i n  From the d a t a p r e s e n t e d appropriate  a  The  derived.  These i n c l u d e d the  s u i t a b l e f o r i n v e s t i g a t i o n of the h y p o t h e s i s  of types  i n a Case  l i s t d i d not take i n t o account r e g i o n a l d i f f e r e n c e s i n  economics. I n Chapter IV, the r e g i o n a l c h a r a c t e r i s t i c s of the Vancouver Case Study A r e a were o u t l i n e d . s t r u c t u r e , and the n a t u r e air  t r a v e l was  perspective. was  for  and S e r v i c e s ) .  study was  i t s a p p l i c a b i l i t y and  Corporate  l i m i t a t i o n s set i n  ( t h a t i s , o r i e n t e d towards T r a n s p o r t a t i o n , Therefore,  any group of i n d u s t r i e s t o be  Trade, selected  t o be o r i e n t e d towards the W h o l e s a l e D i s t r i b u t i o n of manu-  f a c t u r e d goods, and the D i s t r i b u t i o n I n d u s t r y i t s e l f . t o be i n c l u d e d , however, because of t h e i r a b s o l u t e hypothesis  rate  e s t a b l i s h e d t h a t the economy of M e t r o p o l i t a n Vancouver  t e r t i a r y i n nature  Finance,  Air freight statistics,  of l o c a l c o n s i g n e e s were d i s c u s s e d .  d e s c r i b e d , and I t was  Metropolitan  M a n u f a c t u r e r s were  s i g n i f i c a n c e to  (as d e t e r m i n e d from s t u d i e s conducted i n the USA).  An amended  and w e i g h t e d l i s t of I n d u s t r i a l C a t e g o r i e s  and Types s u i t a b l e f o r  was  t h e n d e v e l o p e d from the l i s t p r e s e n t e d  i n Chapter I I I . A  was  developed and  i n t e r v i e w s of m a n a g e r i a l p e r s o n n e l  the  study,  Questionnaire  c a r r i e d out i n o o r d e r  to  79 obtain  information  r e l a t i v e to the hypothesis.  C e r t a i n major assumptions were s e t out i n o r d e r t h a t t h e d e s i r a b i l i t y of a i r p o r t - a r e a  l o c a t i o n c o u l d be i s o l a t e d .  These assumed t h a t many  of t h e common f a c t o r s i n i n d u s t r i a l l o c a t i o n s t u d i e s were e i t h e r or s a t i s f a c t o r y .  Such assumptions were i n c o r p o r a t e d  neutral  i n t o the f i n a l  question  of t h e Q u e s t i o n n a i r e : i ) S u i t a b l e l a n d a t a c o m p e t i t i v e p r i c e must be a v a i l a b l e a t o r close t o the a i r p o r t ; i i ) Good q u a l i t y highways must connect t h e a i r p o r t a r e a t o t h e major t r a f f i c g e n e r a t o r s o f t h e m e t r o p o l i t a n a r e a . Rail f a c i l i t i e s must be a v a i l a b l e i f so d e s i r e d ; i i i ) Market f a c t o r s must i n d i c a t e t h e d e s i r a b i l i t y o f p l a n t sion, re-location, or creation; iv)  expan-  S e r v i c e s such as w a t e r , sewer, and storm d r a i n a g e must be a v a i l a b l e at reasonable cost;  v) A i r p o r t and M u n i c i p a l z o n i n g and development r e g u l a t i o n s must p e r m i t t h e type o f development a n t i c i p a t e d ; vi)  Other f a c t o r s o f p r o d u c t i o n must be a v a i l a b l e on an economic basis.  Two f u r t h e r assumptions were made d u r i n g t h e p r o c e s s o f Q u e s t i o n n a i r e T a b u l a t i o n i n C h a p t e r V.  The f i r s t was t h a t a i r f r e i g h t r a t e s  will  decrease as l a r g e r and more e f f i c i e n t a i r c r a f t a r e i n t r o d u c e d and t h e volume o f r e g u l a r  f r e i g h t increases..  P o r t w i l l be e s t a b l i s h e d  The second assumed t h a t a Customs  a t Vancouver I n t e r n a t i o n a l A i r p o r t i n t h e near  f u t u r e , as t h e t o t a l amount o f l o c a l a i r f r e i g h t  increases.  I n C h a p t e r V, Q u e s t i o n n a i r e r e s p o n s e s were t a b u l a t e d drawn.  and o b s e r v a t i o n s  P r e f e r e n c e G r o u p i n g s , r e f l e c t i n g degree o f a c c e p t a n c e o f t h e hypo-  t h e s i s , were e s t a b l i s h e d . .  C h a r a c t e r i s t i c s of the firms  t h e n I t e m i z e d and a n a l y z e d i n terms o f t h e s e G r o u p i n g s .  interviewed  were  Within the l i m i t a -  t i o n s imposed by t h e method o f s e l e c t i o n , Q u e s t i o n n a i r e d e r i v a t i o n , and  80 the s i z e o f Study Group u t i l i z e d , c e r t a i n g e n e r a l i z a t i o n s were then drawn. Conclusions  from and g e n e r a l r e l e v a n c e  of these g e n e r a l i z a t i o n s are d i s -  c u s s e d below.  (b) C o n c l u s i o n s  from q u e s t i o n n a i r e r e s u l t s  W i t h i n t h e l i m i t a t i o n s o f t h e i n v e s t i g a t i o n c a r r i e d out i n t h e Vancouver M e t r o p o l i t a n A r e a , t h e h y p o t h e s i s v a n t and o f p r a c t i c a l v a l u e . many o f t h e c o r p o r a t e  i s considered  t o be b o t h r e l e -  R e l e v a n c y i s a s c e r t a i n e d from t h e f a c t t h a t  personnel  i n t e r v i e w e d had a l r e a d y g i v e n some thought  t o the concept, and i n some cases had n o t e d t h e b e n e f i t s a c c r u i n g t o them from a p r e s e n t  l o c a t i o n near the a i r p o r t .  displayed considerable discuss i t ,  I n a d d i t i o n , most r e s p o n d e n t s  i n t e r e s t i n the hypothesis  regardless of p o s i t i v e or negative  and were q u i t e ready t o  feelings.  Such d i s c u s s i o n  c o u l d n o t have been p o s s i b l e u n l e s s c o n s i d e r a t i o n had a l r e a d y been g i v e n t o the q u e s t i o n o f employing h i g h e r c o s t a i r f r e i g h t t o o b t a i n b e t t e r customer r e l a t i o n s and s e r v i c e , and t o decrease t o t a l d i s t r i b u t i o n c o s t s . P r o j e c t i n g t h i s t h i n k i n g one stage f u r t h e r , and a p p l y i n g i t t o f u t u r e l o c a t i o n a l demands appeared The  site  logical.  f a c t that the majority of firms interviewed d i d not b e l i e v e  that a i r p o r t l o c a t i o n could b e n e f i t t h e i r present the r e l e v a n c y o f t h e h y p o t h e s i s .  o p e r a t i o n does n o t l i m i t  I t demonstrates, r a t h e r , t h a t t h e impor-  t a n c e o f a i r f r e i g h t and/or c o r p o r a t e  a i r t r a v e l i n the t o t a l operation of  the f i r m was p r e s e n t l y n o t o f s u f f i c i e n t r e l a t i v e importance t o overcome other l o c a t i o n a l requirements. The  p r a c t i c a l value of the hypothesis  f a c t that twenty-five percent  i s a s c e r t a i n e d from t h e  of the firms interviewed s i g n i f i e d a i r p o r t  s i t e l o c a t i o n as a d i s t i n c t p o s s i b i l i t y i n t h e near f u t u r e .  In addition,  81 a f u r t h e r t h i r t y - f i v e p e r c e n t i n d i c a t e d t h a t a i r p o r t l o c a t i o n was f e a s i b l e i n p r i n c i p l e b u t i m p r a c t i c a l i n r e a l i t y , due t o o t h e r The  limiting factors.  f a c t that f o r t y percent of the firms interviewed regarded the hypothesis  u n f a v o u r a b l y c o u l d w e l l have been t h e r e s u l t of f a i l i n g s i n Study Group s e l e c t i o n , r a t h e r than r e j e c t i o n of the hypothesis  out o f hand.  Several  of t h e ' U n f a v o u r a b l e ' Group o f f i r m s h a n d l e d p r o d u c t s t h e n a t u r e o f w h i c h d i d n o t encourage shipment by a i r . d i d not favour establishment  extensive  executive  C o r p o r a t e and s a l e s o r g a n i z a t i o n s travel.  also  A more a s s i d u o u s and o b j e c t i v e  of t h e Study Group u n i v e r s e may have e l i m i n a t e d some o f these  f i r m s from c o n s i d e r a t i o n . Some p r a c t i c a l c o n c l u s i o n s Chapter V.  c a n be drawn from t h e d a t a p r e s e n t e d i n  A l t h o u g h t h e l i m i t a t i o n s imposed by t h e method o f s e l e c t i o n o f  f i r m s i n t h e Study Group do n o t p e r m i t a b s o l u t e  statements t o be made, t h e  f a c t t h a t a t l e a s t t w e n t y - f i v e p e r c e n t o f t h e f i r m s i n d i c a t e d some form o f approval  allows a t e n t a t i v e a p p l i c a t i o n of the f i n d i n g s . F i r m s t h a t were f a v o u r a b l e  common o p e r a t i o n a l c r i t e r i a .  to the hypothesis  possessed c e r t a i n  A p p l i c a t i o n o f t h e s e c r i t e r i a t o a l l Metropo-  l i t a n Vancouver f i r m s i n t h e u n i v e r s e  ( a s d e r i v e d by t h e method i n Appendix  I I ) may- g i v e t h e t o t a l number o f f i r m s t h a t c o u l d c o n c e i v a b l y n e a r Vancouver I n t e r n a t i o n a l A i r p o r t a t p r e s e n t .  re-locate  A p p l i c a t i o n of i n d u s t r i a l  growth t r e n d s and p r o j e c t i o n s c o u l d determine t h e number o f t h e s e f i r m s c o u l d so l o c a t e i n t h e f u t u r e . pated.  that  Land use r e q u i r e m e n t s c o u l d t h e n be a n t i c i -  As a r e s u l t , t h e e s t a b l i s h m e n t  of t h e s e c r i t e r i a c o u l d be of importance  t o t h e p r e s e n t d e v e l o p e r s o f two l a r g e b l o c s o f i n d u s t r i a l l a n d n e a r t h e airport. I t i s t o be n o t e d t h a t t h e c r i t e r i a below c o r r o b o r a t e i n Chapter I I I . The Types o f f i r m s r e a c t i n g f a v o u r a b l y  data presented  to the hypothesis  82 d u r i n g i n t e r v i e w s c o r r e s p o n d t o t h o s e w h i c h have l o c a t e d near a i r p o r t s i n a r e a s of the U n i t e d S t a t e s .  S i m i l a r l y , the c r i t e r i a d e s c r i b e the k i n d s of  f i r m s w h i c h u t i l i z e or h a n d l e the p r o d u c t s w h i c h make up t h e b u l k of a i r freight.  These f i r m s a r e a l s o i n c l u d e d w i t h i n the h i g h and medium  'travel'  types'. The c r i t e r i a  include:  i ) W h o l e s a l e D i s t r i b u t i o n and D i s t r i b u t i o n f i r m s appear t o be those most f a v o u r a b l e t o a i r p o r t l o c a t i o n . However, .those W h o l e s a l e f i r m s t h a t h a n d l e d i v e r s i f i e d items and/or s u p p l y s t o c k d i r e c t l y t o r e t a i l e r s , do not appear t o be a p p l i c a b l e ; l o c a t i o n ' , c e n t r a l t o t h e i r s e r v i c e a r e a s i s paramount.. Manuf a c t u r e r s representatives, or l o c a l d i s t r i b u t o r s f o r nationa l l y o r i n t e r n a t i o n a l l y known items a r e most l i k e l y t o r e g a r d airport location positively; i i ) Auto P a r t s , T e x t i l e s (non c l o t h i n g ) , I n d u s t r i a l M a c h i n e r y , and F r e i g h t F o r w a r d i n g f i r m s a r e t h e r e l e v a n t Types w i t h i n the above C a t e g o r i e s . V i r t u a l l y a l l development t o be exp e c t e d from a i r p o r t l o c a t i o n of t h e s e f i r m s would be some form o f w a r e h o u s i n g . A d m i n i s t r a t i v e o f f i c e s c o u l d be exp e c t e d t o accompany most of the W h o l e s a l e f i r m s . Companies i n t h e D i s t r i b u t i o n C a t e g o r y would r e q u i r e warehouses, s h i p p i n g f a c i l i t i e s , and o f f i c e space c l o s e t o an a i r p o r t f r e i g h t t e r m i n a l . L o c a t i o n of the W h o l e s a l e D i s t r i b u t i o n f i r m s r e l a t i v e t o d i s t a n c e from the a i r p o r t was never made e x p l i c i t ; however the r e s p o n s e s i n d i c a t e d a maximum t r a v e l t i m e o f t e n t o f i f t e e n m i n u t e s . D i r e c t o f f - l o a d i n g from a i r c r a f t t o warehouse l o a d i n g docks d i d not appear t o be r e q u i r e d f o r the l a t t e r Category, but i s d e s i r a b l e f o r f i r m s i n the D i s t r i b u t i o n C a t e g o r y ; i i i ) L a r g e f i r m s of n a t i o n a l o r i n t e r n a t i o n a l scope above C a t e g o r i e s and Types) appear t o be t h o s e t o l o c a t i o n i n p r o x i m i t y t o the a i r p o r t . S i z e o f f i c e does not a f f e c t the demand f o r a i r p o r t  ( w i t h i n the most amenable of the l o c a l sites;  i v ) F i r m s ( w i t h i n the above C a t e g o r i e s and Types) i m p o r t i n g 100% o f t h e i r s t o c k were f a v o u r a b l e t o the h y p o t h e s i s ;  nearly  v) Those f i r m s t h a t p r e s e n t l y u t i l i z e a i r f r e i g h t r e g u l a r l y ; are i n c r e a s i n g t h e i r use c o n s i d e r a b l y ; o r who p l a n on f u t u r e such use, a r e f a v o u r a b l y d i s p o s e d towards l o c a t i n g t h e i r warehouses n e a r Vancouver I n t e r n a t i o n a l A i r p o r t . A l t h o u g h most of the normal s t o c k f o r t h e s e f i r m s may a r r i v e by s u r f a c e c a r r i e r , the r e l a t i v e u b i q u i t y o f r o a d and r a i l f a c i l i t i e s and the f i x e d n a t u r e o f the a i r p o r t encourage a l o c a t i o n t h a t i s advantageously s i t u a t e d i n r e l a t i o n to the l a t t e r .  83 On  the s t r e n g t h of the c o r r e l a t i o n between the use of a i r f r e i g h t  and a i r p o r t s i t e l o c a t i o n , the p r a c t i c a l i t y of the h y p o t h e s i s for  i s demonstrated  some f i r m s i n the w h o l e s a l e D i s t r i b u t i o n and D i s t r i b u t i o n C a t e g o r i e s . The  r e s e r v a t i o n s most o f t e n g i v e n by f i r m s a g r e e i n g  w i t h the h y p o t h e s i s  in principle  were, i n many cases i d e n t i c a l to r e a s o n s f o r r e j e c t i o n  g i v e n by o t h e r f i r m s .  The most p r e v a l e n t  r e s e r v a t i o n s were those  concerning:  need f o r a c e n t r a l l o c a t i o n i n the f i r m ' s s e r v i c e a r e a ; heavy w e i g h t or v a l u e of p r o d u c t ; need f o r i n t e r n a l changes i n the f i r m ' s o p e r a t i o n m a t e r i a l s h a n d l e d ; the l o c a t i o n of a s u i t a b l e l a b o u r f o r c e ,  low  and/or  whereas  little  s p e c u l a t i o n i s t e n a b l e about the i n t e r n a l p r o c e s s e s of the i n d i v i d u a l f i r m s , some comments are p o s s i b l e about r e s e r v a t i o n s t h a t c o u l d be l e s s e n e d metropolitan  growth.  A l t h o u g h i t i s not e x p e c t e d t h a t a r i v a l t o  by  the  Vancouver C e n t r a l B u s i n e s s D i s t r i c t w i l l be e s t a b l i s h e d i n the f u t u r e j the p r o d i g i o u s  growth of the suburban M u n i c i p a l i t i e s of Richmond,  and D e l t a shows e v e r y s i g n of c o n t i n u i n g .  Surrey,  Such development w i l l e s t a b l i s h  a l a r g e urban p o p u l a t i o n v e r y c l o s e t o Vancouver I n t e r n a t i o n a l A i r p o r t . A need f o r u r b a n s e r v i c e s and  d i s t r i b u t i o n f a c i l i t i e s i n these M u n i c i p a l i -  t i e s w i l l be m a n i f e s t e d on an e v e r i n c r e a s i n g s c a l e f a r i n t o the f o r e seeable f u t u r e . developing  S i m i l a r l y , the new  w i l l continue  t o grow and  suburban i n d u s t r i a l a r e a s p r e s e n t l y intensify.  t h a t the s e r v i c e a r e a demandedby many f i r m s may r a d i u s of a s i t e n e a r the a i r p o r t . c l o t h i n g and  The  e l e c t r o n i c s i n d u s t r i e s may  I t i s possible, therefore, develop w i t h i n a c o n v e n i e n t  type of l a b o u r f o r c e r e q u i r e d  by  a l s o become e s t a b l i s h e d .  A problem does e x i s t t h a t w i l l m i t i g a t e the p o s i t i v e f a c t o r s associated with metropolitan  growth.  Vancouver I n t e r n a t i o n a l A i r p o r t i s  l o c a t e d a t the extreme w e s t e r n edge of the expanding M u n i c i p a l i t i e s . Thus i t c o u l d be a n t i c i p a t e d t h a t f i r m s w i s h i n g p r o x i m i t y t o the a i r p o r t , y e t  84 r e q u i r i n g l o c a t i o n s c e n t r a l t o t h e i r s e r v i c e areas would not l o c a t e a t the a i r p o r t s i t e , but would do so w i t h i n a t e n t o f i f t e e n minute r a d i u s of the airport.. As was  d e s c r i b e d i n Chapter IV, secondary m a n u f a c t u r i n g  c o n s i s t e n t l y i n the Vancouver M e t r o p o l i t a n A r e a . the number of m a n u f a c t u r e r s increase.  The  i s growing  As t h i s p r o c e s s  continues,  p r o d u c i n g h i g h v a l u e items can be e x p e c t e d  emphasis on p r o d u c t i o n of low v a l u e commodities, e n c o u n t e r e d  as a r e a s o n f o r r e j e c t i o n of the h y p o t h e s i s by s e v e r a l m a n u f a c t u r i n g may  be m o d i f i e d i n the f u t u r e .  firms,  There i s no j u s t i f i c a t i o n f o r s t a t i n g t h a t  the h y p o t h e s i s w i l l a p p l y t o new possibility  to  secondary m a n u f a c t u r i n g  f i r m s , but  the  exists.  Although  assumptions were made i n o r d e r t o i s o l a t e the f a c t o r of  a i r p o r t l o c a t i o n (see p a r t ( a ) ) , I t must be s t r e s s e d t h a t f o r many of the f i r m s i n t e r v i e w e d ( b o t h t h o s e i n f a v o u r , and those i n f a v o u r w i t h r e s e r v a t i o n s ) an i n t e g r a t e d highway system c o n n e c t i n g the a i r p o r t w i t h the M e t r o p o l i t a n A r e a must be i n e x i s t e n c e b e f o r e the a i r p o r t can be  considered  as a l o c a t i o n a l d e t e r m i n a n t .  signifi-  T h i s f a c t a l o n e i s of c o n s i d e r a b l e  cance t o any c o r p o r a t e e n t i t y p l a n n i n g the development o f p r o p e r t y f o r i n d u s t r i a l use near Vancouver I n t e r n a t i o n a l A i r p o r t .  The  establishment  of  a Customs P o r t i s n e c e s s a r y b e f o r e a s i t e near the a i r p o r t c o u l d be cons i d e r e d f o r at l e a s t three f i r m s . occurs  I f a reduction i n a i r freight rates  (as compared w i t h r a i l o r t r u c k e x p r e s s ) , one of the s t r o n g e s t o b j e c -  t i o n s as v o i c e d by some f i r m s r e j e c t i n g o r c o n d i t i o n a l l y a p p r o v i n g  the  h y p o t h e s i s , w i l l be e l i m i n a t e d .  C.  Suggestions One  f o r f u r t h e r study  of the l i m i t a t i o n s of t h i s paper i s i n h e r e n t i n the Case Study  85 Area.  As was e x p l a i n e d i n C h a p t e r s I I and I I I , t h e f i r m s most l i k e l y t o  b e n e f i t from t h e r e d u c e d d i s t r i b u t i o n c o s t s o f a i r f r e i g h t (and t h u s p o t e n t i a l p l a n t l o c a t i o n near t h e a i r p o r t ) a r e , m a n u f a c t u r e r s o f v a r i o u s high q u a l i t y products.  As C h a p t e r IV i n d i c a t e d , t h e Vancouver M e t r o p o l i t a n  A r e a i s one o f t h e 'have n o t ' secondary m a n u f a c t u r i n g a r e a s o f Canada. I t would be v e r y i n t e r e s t i n g t o c a r r y out t h i s same survey i n t h e Toronto M e t r o p o l i t a n A r e a , acknowledged t o be t h e h e a r t o f secondary m a n u f a c t u r i n g i n Canada.  Many o f t h e f i r m s i n t e r v i e w e d r e f e r r e d t o t h e i r T o r o n t o head  o f f i c e o r f a c t o r y as b e i n g  t h e r e a l s u b j e c t f o r q u e s t i o n i n g on t h e a p p l i c a -  b i l i t y o f the h y p o t h e s i s .  I n f a c t , f i v e of the f i r m s stated that  their  f a c t o r y o r main warehouse i n t h e T o r o n t o A r e a had r e c e n t l y r e l o c a t e d , o r would be r e l o c a t i n g w i t h i n one t o f i v e m i l e s o f M a l t o n A i r p o r t . P a r t s D i s t r i b u t o r s and t h e A i r F r e i g h t F o r w a r d i n g f i r m i n t h e Preference convenient,  Group were among t h e s e .  Both Auto 'Favourable'  The Vancouver M e t r o p o l i t a n A r e a was  and was t h e r e f o r e employed f o r t h i s paper; however, i t s s h o r t -  comings a r e e v i d e n t f r o m t h e i n f o r m a t i o n accumulated i n C h a p t e r I V . I t may be o f g r e a t e r ease and b e n e f i t i f f u t u r e s t u d i e s  concentrated  on-one I n d u s t r i a l C a t e g o r y a t a t i m e , r a t h e r t h a n on t h e 'shotgun' method u t i l i z e d here.  A c o n c e n t r a t i o n on W h o l e s a l e D i s t r i b u t i o n f i r m s , f o r example,  c o u l d be t h e f i r s t  s t e p o f such a s u r v e y .  I t would t h e n be p o s s i b l e t o  ensure a r e l e v a n t u n i v e r s e , a s p e c i f i c a l l y o r i e n t e d q u e s t i o n n a i r e , and a l a r g e sample, w i t h o u t  the complexity  u n i v e r s e and d e t e r m i n i n g  o f s t r a t i f y i n g and w e i g h t i n g t h e  t h e v a r i o u s c r i t e r i a f o r s e v e r a l C a t e g o r i e s and  Types o f i n d u s t r i e s a t once.  S t a g i n g t h e study  i n such a manner would  c e r t a i n l y make i t e a s i e r f o r one p e r s o n t o c a r r y i t o u t . A l t h o u g h t h e I n d u s t r i a l C a t e g o r i e s may be i n t e r d e p e n d e n t , t r e a t i n g them s e p a r a t e l y .  l i t t l e harm i s f o r s e e n i n  86 I n any  f u r t h e r work t o be u n d e r t a k e n the most important  be t o e s t a b l i s h d e f i n i t i v e l y and (b) of t h i s C h a p t e r .  task w i l l  i s o l a t e the c r i t e r i a i t e m i z e d i n P a r t _B.  That i s , i f c r i t e r i a can be d e r i v e d t h a t are common  t o most or a l l t y p e s of f i r m s d e s i r i n g p l a n t l o c a t i o n n e a r major a i r p o r t s , t h e n p l a n n i n g and development a g e n c i e s c a n - a p p l y t h e s e c r i t e r i a t o  the  i n d u s t r i a l t r e n d s p r e v a i l i n g i n t h e i r r e s p e c t i v e a r e a s , and c a l c u l a t e the type and amount of a i r p o r t - o r i e n t e d i n d u s t r i a l l a n d use demand t o be anticipated.  F u r t h e r m o r e , and perhaps of even g r e a t e r s i g n i f i c a n c e , i s the  a p p l i c a t i o n of such c r i t e r i a i n the e s t a b l i s h m e n t industrial location policy.  of a M u n i c i p a l o r r e g i o n a l  I f a major a i r p o r t i s s i t u a t e d w i t h i n the  b o u n d a r i e s of a p l a n n i n g agency's j u r i s d i c t i o n , t h a t agency can be  instru-  m e n t a l i n i n i t i a t i n g p o l i c y towards the i n d u s t r i a l development of an adjacent  t o the a i r p o r t .  Knowledge of the Types of i n d u s t r i e s t h a t  b e n e f i t from a i r p o r t l o c a t i o n w i l l g u i d e the p r o m o t i o n a l  campaign,  of an i n d u s t r i a l p a r k , and the degree of s u c c e s s a n t i c i p a t e d .  area could  design  That i s , the  p l a n n e r w i l l be a b l e t o p l a n w i t h i n c r e a s e d knowledge of the needs of i n d u s t r y , b e n e f i t s t o the community, and the e f f i c i e n t use of community resources.  More p r a c t i c a l and  successful planning  should  result.  C r i t e r i a must be r e l a t e d t o the type of r e g i o n a l or economy i n w h i c h f u r t h e r s t u d i e s are c a r r i e d o u t . Vancouver, f o r i n s t a n c e , may  C r i t e r i a derived f o r  be of l i t t l e r e l e v a n c e  I t i s toward the e s t a b l i s h m e n t  metropolitan  i n the Toronto A r e a .  of such a w o r k a b l e system of s t a n d a r d s or  c r i t e r i a that p r a c t i c a l l y - o r i e n t e d research  s t u d i e s are c a r r i e d o u t .  In  the s p i r i t of the I n t r o d u c t o r y C h a p t e r , the type of i n v e s t i g a t i o n demons t r a t e d i n t h i s paper c o u l d be a p p l i e d t o d e t e r m i n i n g  the  operational  s t a n d a r d s of f i r m s a t t r a c t e d t o a l l t y p e s of t r a n s p o r t t e r m i n a l s . Presumably, t e r m i n a l s f o r d i f f e r e n t t r a n s p o r t a t i o n media w i l l a t t r a c t  87 d i f f e r e n t types of i n d u s t r y .  Unfortunately,  t h e impetus t o c a r r y such  p r o j e c t s f o r w a r d o f t e n l a g s b e h i n d changes i n community r e q u i r e m e n t s o f t e c h n o l o g y , such t h a t s t a n d a r d s a r e n o t d e r i v e d u n t i l a f t e r they a r e o b s o l e t e . I n summary, i t i s b e l i e v e d t h a t w i t h i n t h e l i m i t a t i o n s o f t h i s s t u d y , and pending t h e c o m p l e t i o n o f a more s c i e n t i f i c and thorough work, the a t t r a c t i v e n e s s f o r c e r t a i n i n d u s t r i e s o f a s i t e n e a r a major a i r p o r t has been demonstrated.  In selected metropolitan  a r e a s i n t h e U.S.A.  (New Y o r k , A t l a n t a , B o s t o n , T u l s a , F r e s n o , and o t h e r s ) , i t was shown t h a t firms u t i l i z i n g considerable  a i r f r e i g h t and c o r p o r a t e  a c t u a l l y l o c a t e d near major a i r p o r t s .  I n t h e Vancouver  a i r t r a v e l have Metropolitan  A r e a , some W h o l e s a l e D i s t r i b u t i o n and D i s t r i b u t i o n f i r m s w h i c h a r e r e g u l a r u s e r s o f a i r f r e i g h t can see t h e m e r i t o f l o c a t i n g t h e i r warehouses n e a r Vancouver I n t e r n a t i o n a l A i r p o r t , a l t h o u g h a c t u a l l o c a t i o n has y e t t o o c c u r . The  hypothesis,  practical  value.  as s t a t e d on page 77  appears, t h e r e f o r e , t o have some  APPENDIX I  89  APPENDIX I  AIR FREIGHT MOVEMENT: SOME REPRESENTATIVE AIRPORTS  Airport  Vancouver (1959) Oakland San F r a n c i s c o Los A n g e l e s  Annual Gross Cargo Movement (Tons) (1958) 4,110 4,540 39,400 .50,290  Newark  45,100  LaGuardia  46,200  I d l e w i l d (New York I n t e r n a t i o n a l )  80,600  Vancouver (1980)  62,000  APPENDIX II  91  APPENDIX I I  FIRMS FOR STUDY: METHOD OF SELECTION  On the b a s i s o f the r e l a t i v e s i g n i f i c a n c e of I n d u s t r i a l C a t e g o r i e s in  the Vancouver M e t r o p o l i t a n A r e a as d i s c u s s e d i n P a r t s A to C of Chapter  IV,  f o u r C a t e g o r i e s were chosen from the comprehensive l i s t o f Chapter I I I  C. (b) as b e i n g s u i t a b l e f o r s t u d y .  A r e l a t i v e 'Weight F a c t o r ' was  de-  r i v e d f o r each C a t e g o r y , and a s s i g n e d a c c o r d i n g t o the i m p o r t a n c e o f each C a t e g o r y i n the Case Study A r e a and i t s s i g n i f i c a n c e to the h y p o t h e s i s . The C a t e g o r i e s and Weight F a c t o r s a r e shown i n T a b l e 1.  TABLE 1 INDUSTRIAL CATEGORIES AND WEIGHT FACTORS Category  Weight  Wholesale D i s t r i b u t i o n Manufacturing Distribution Miscellaneous Total  Factor 40 25 20 .15  100  On a s i m i l a r b a s i s , Types o f f i r m s w i t h i n each C a t e g o r y were chosen. These Types were b o t h r e p r e s e n t a t i v e of the economy of the Vancouver M e t r o p o l i t a n A r e a and of s i g n i f i c a n c e to the h y p o t h e s i s ( t h a t i s , chosen from the b e f o r e m e n t i o n e d l i s t i n Chapter I I I ) . the  C a t e g o r i e s and Types o f f i r m s found s u i t a b l e .  they were  Table 2 c o n t a i n s  TABLE 2 CATEGORIES AND TYPES OF FIRMS SELECTED FOR STUDY Category wholesale  TyP  Distribution  Auto P a r t s ; E l e c t r i c a l and E l e c t r o n i c Apparatus; Construct i o n Equipment and P a r t s ; I n d u s t r i a l Machinery; T e x t i l e s and F a b r i c s  Manufacturing  M a c h i n e r y and P a r t s ; E l e c t r i c a l and E l e c t r o n i c A p p a r a t u s ; I n d u s t r i a l and C o n s t r u c t i o n Equipment; T e x t i l e s and Fabrics  Distribution  F r e i g h t Forwarding; D i s t r i b u t i o n S e r v i c e s and S h i p p i n g ; Warehousing  Miscellaneous  C o n s t r u c t i o n ; R e s e a r c h and Development L a b o r a t o r i e s  L i s t i n g s corresponding the  e  t o t h e Types i n T a b l e 2 i s c o n t a i n e d i n  'Yellow Pages' o f the Vancouver M e t r o p o l i t a n Telephone D i r e c t o r y were  u t i l i z e d t o compile  a l i s t o f f i r m s w i t h i n each C a t e g o r y and Type.  f i r m s t h a t were o b v i o u s l y o f t h e s e l e c t e d Types were chosen.  This  Only suita-  b i l i t y was determined from: p e r s o n a l knowledge; d e s c r i p t i v e and a d v e r t i s i n g d a t a ; name and s i z e o f f i r m ; p r e s e n t use o f a i r f r e i g h t ; and range o f products  or s a l e s .  Although  the 'randomness' o f t h i s method and t h e  o b j e c t i v i t y o f t h e g e n e r a l c r i t e r i a i n v o l v e d a r e i n q u e s t i o n , t h e number o f f i r m s t h a t appeared t o be s u i t a b l e f o r the u n i v e r s e was v e r y l a r g e .  In  l i e u o f a c c u r a t e i n f o r m a t i o n about t h e o p e r a t i o n o f every p o s s i b l e f i r m , s u b j e c t i v e i n f o r m a t i o n was u t i l i z e d t o s e l e c t the i n i t i a l By t h i s p r o c e s s considered  a t o t a l o f 400 f i r m s was d e r i v e d .  t o be too u n w i e l d y  f o r the s i z e o f survey  universe. T h i s amount was  t h a t was i n t e n d e d .  O t h e r c r i t e r i a were then i n t r o d u c e d i n o r d e r t o reduce t h e s i z e o f t h e  93 universe.  Some f i r m s were o b v i o u s l y more s u i t a b l e than o t h e r s i n r e g a r d  t o the h i g h v a l u e  to w e i g h t r a t i o , p e r i s h a b i l i t y or 'emergency d e s i r a b i l i t y '  of t h e i r products.  S i m i l a r l y , o t h e r s were known to be l a r g e and  n a t i o n a l i n scope.  I t was  having  inter-  e s t a b l i s h e d i n Chapters I I I and IV t h a t f i r m s  such q u a l i t i e s were those most s u i t a b l e f o r i n v e s t i g a t i o n .  (An  a t t e m p t was made, however, to i n c l u d e w i t h i n the u n i v e r s e l o c a l l y - b a s e d s m a l l e r f i r m s t h a t h a n d l e d or produced s u i t a b l e p r o d u c t s . ered necessary i n order  T h i s was  consid-  to ensure t h a t the Study Group to be s e l e c t e d r e -  mained r e p r e s e n t a t i v e of the l o c a l economy. s m a l l or medium-sized l o c a l l y - o w n e d  F u r t h e r m o r e , f o r some Types,  f i r m s were a c t u a l l y the most p r e v a l e n t  i n the Case Study A r e a ) . I n a d d i t i o n to the above, s p e c i f i c c r i t e r i a were then a p p l i e d so as to reduce the u n i v e r s e f r e i g h t and  to f i r m s t h a t were most l i k e l y to u t i l i z e a i r  corporate a i r t r a v e l .  I n the w h o l e s a l e D i s t r i b u t i o n C a t e g o r y ,  s e l e c t e d f i r m s d i d n o t have a s s o c i a t e d r e t a i l o u t l e t s (such an o u t l e t would tend to f i x l o c a t i o n i n a populous a r e a ) and d i d n o t c o n c e n t r a t e the d i s t r i b u t i o n o f l o c a l l y m a n u f a c t u r e d goods.  The M a n u f a c t u r i n g  on  Cate-  gory i n c l u d e d o n l y those f i r m s t h a t produced a r e l a t i v e l y h i g h volume of goods and  t h a t i m p o r t e d manufactured p r o d u c t s as f a c t o r s of  O n l y those o p e r a t o r s who  appeared to be r e l a t i v e l y l a r g e , and  production. that possessed  f i x e d f a c i l i t i e s s e r v i n g r o a d , r a i l , or p o r t a r e a s , were i n c l u d e d i n the D i s t r i b u t i o n Category.  Of the C o n s t r u c t i o n f i r m s i n the  Miscellaneous  C a t e g o r y , o n l y those f i r m s known to b i d on l a r g e p r o j e c t s o u t s i d e Vancouver M e t r o p o l i t a n A r e a were i n c l u d e d . c r i t e r i a the u n i v e r s e was  r e d u c e d to 144  A Study Group of f o r t y f i r m s was  the  Through the a p p l i c a t i o n o f a l l  firms. considered  to be the maximum  number w h i c h c o u l d be i n t e r v i e w e d w i t h i n the t h r e e week p e r i o d a v a i l a b l e .  94 The n u m e r i c a l Study Group was then s t r a t i f i e d amongst t h e f o u r C a t e g o r i e s i n accordance w i t h t h e Weight F a c t o r o f T a b l e 1.  T a b l e 3 shows t h e  d i v i s i o n o f t h e Study Group by C a t e g o r y . TABLE 3 DISTRIBUTION OF THE STUDY GROUP BY CATEGORY AND WEIGHT FACTOR  Category  Wholesale D i s t r i b u t i o n Manufacturing Distribution Miscellaneous Total  Weight F a c t o r  Study Group  40 25 20 15  16 •10 8 6  100  40  The number o f f i r m s a l l o c a t e d t o each Category was then d i v i d e d amongst the v a r i o u s Types o f f i r m s w i t h i n t h a t C a t e g o r y .  This d i v i s i o n  was based upon t h e : number o f f i r m s o f each Type i n the u n i v e r s e as comp a r e d w i t h t h e t o t a l number o f f i r m s i n t h e u n i v e r s e w i t h i n t h e C a t e g o r y ; r e l a t i v e m e r i t s o f t h e p r o d u c t s o f f i r m s w i t h i n t h e v a r i o u s Types as r e gards v a l u e and g e n e r a l s u i t a b i l i t y f o r a i r f r e i g h t ; degree o f p o t e n t i a l c o r p o r a t e t r a v e l ; importance o f the Type i n t h e Case Study A r e a . illustrates  Table 4  t h e d i v i s i o n o f t h e n u m e r i c a l Study Group amongst t h e Cate-  g o r i e s and Types.  95 TABLE 4 STUDY GROUP DISTRIBUTION BY CATEGORY AND TYPE  Category  Wholesale Distribution  Type  Auto P a r t s Electrical Electronic Textile I n d u s t r i a l and Cons t r u c t i o n Machinery and P a r t s Total  Manufacturers  M a c h i n e r y and P a r t s , including Industrial and C o n s t r u c t i o n Equipment E l e c t r i c a l and E l e c t r o n i c Textiles Total  Distribution  F r e i g h t Forwarding Distribution Service, S h i p p i n g , and Warehousing  Total Miscellaneous  Construction Research Total  Universe  Study Group  19 24 5 11  4 4 2 2  25  4  84  16  12 7 15  '  3 3 4 •  34  10  5  4  8  4  13  8  9 4  3 3  13  6  Study Group f i r m s were then chosen by name from the s e p a r a t e u n i v e r s e f o r each Type.  The f i r m s chosen were those t h a t appeared  to best  96 s a t i s f y the c r i t e r i a on the p r e c e d i n g  pages.  In a d d i t i o n , a f i r m  was  r e j e c t e d i f i t was  known t h a t i t had been i n i t s p r e s e n t l o c a t i o n f o r o n l y  one  Such a f i r m c o u l d h a r d l y have been e x p e c t e d to have  or two y e a r s .  u n d e r t a k e n subsequent r e - l o c a t i o n s t u d i e s .  An e f f o r t was  made to choose  f i r m s t h a t were l o c a t e d n e a r p r e s e n t t r a n s p o r t a t i o n t e r m i n a l s or major routes  ( i n c l u d i n g the a i r p o r t ) , as such f i r m s c o u l d have been those most  s e n s i t i v e to t r a n s p o r t a t i o n . A'windshield  access.  s u r v e y ' was  c a r r i e d out i n o r d e r  to determine i f the  p a r t i c u l a r f i r m s chosen were a c t u a l l y of a s u i t a b l e n a t u r e , fact exist.  and  did i n  I n some c a s e s , second c h o i c e s were made where f i r m s d i d not  appear to s a t i s f y the  criteria.  Names of the f i r m s i n the Study Group w i l l n o t be p u b l i s h e d . o f the i n f o r m a t i o n o b t a i n e d The  rather  d e r i v a t i o n can be  Some  i s of a c o n f i d e n t i a l n a t u r e .  'unscientific  1  method of u n i v e r s e and  Study Group  c r i t i c i z e d f o r the l a c k o f randomness and  the  large  element of s u b j e c t i v i t y . However, the u n i v e r s e as d e v e l o p e d became so l a r g e and v a r i e d , r e l a t i v e to the i n t e r v i e w time a v a i l a b l e (and s i z e of a s c i e n t i f i c a l l y  d e r i v e d s a m p l e ) , and  thus  the  the s p e c i a l q u a l i f i c a t i o n s  d e s i r e d o f each f i r m so demanding, t h a t some form of a r b i t r a r y judgment considered  necessary.  The  a l t e r n a t i v e was  to i n v e s t i g a t e t h o r o u g h l y  s a l e s , p r o d u c t s o r s t o c k , s e r v i c e a r e a , a d m i n i s t r a t i o n , and patterns  was  the  production  of a l l f i r m s of each Type as d e r i v e d from the Telephone D i r e c t o r y ,  to e l i m i n a t e a l l those t h a t f e l l below a c e r t a i n d e r i v e d s t a n d a r d , s e l e c t a t random the s t r a t i f i e d  sample groups.  The  then to  time i n v o l v e d would  have been w e l l beyond t h a t a v a i l a b l e . I n a d d i t i o n , the g e n e r a l n a t u r e of the d a t a as c o l l e c t e d and s e n t e d i n Chapter I to IV, and  the t e n o r of the h y p o t h e s i s  itself  pre-  (which  97/ i s i n t e n d e d to d i s c e r n a t r e n d or a p o s s i b i l i t y , n o t a f a c t or an amount), d i d n o t w a r r a n t the s p e n d i n g o f c o n s i d e r a b l e time and e f f o r t i n the drawi n g of a sample.  I n o r d e r to i n d i c a t e the v a l u e of the h y p o t h e s i s , a  r e p r e s e n t a t i v e group o f i n d u s t r i e s was r e q u i r e d o f the Types and  Categor-  i e s found to be r e l e v a n t to the h y p o t h e s i s i n the Case Study A r e a .  There-  f o r e , r a t h e r than p e r f e c t a t r u e sample, i t was b o t h a d v i s a b l e and a c c e p t a b l e to choose a Study Group, and a u n i v e r s e by l e s s than o b j e c t i v e means. The methodology adopted was, data i n e a r l i e r Chapters. p r o c e s s of i n q u i r y .  t h e r e f o r e , of a comparable  s t a n d a r d to the  The f i n d i n g s s h o u l d be the r e s u l t o f a b a l a n c e d  APPENDIX I I I  99  APPENDIX I I I  QUESTIONNAIRE DERIVATION AND  The  f i r s t aim o f the Q u e s t i o n n a i r e was  SCHEDULE  to enable the  collection  of d a t a shown t o be c h a r a c t e r i s t i c o f f i r m s which had l o c a t e d near major a i r p o r t s i n v a r i o u s areas o f the U n i t e d S t a t e s .  Knowledge was  therefore  r e q u i r e d o f the degree o f p r e s e n t and a n t i c i p a t e d use o f a i r f r e i g h t , p l u s c h a r a c t e r i s t i c s o f the f i r m (such as o u t s i d e ownership or c o n t r o l , s a l e s o r g a n i z a t i o n ) t h a t c o u l d a f f e c t the r e q u i r e m e n t s travel.  I n f o r m a t i o n was  to be so determined  and  f o r corporate  t h a t the answers o b t a i n e d  c o u l d be c o r r e l a t e d w i t h the d e s i r a b i l i t y to the f i r m o f a s i t e near Vancouver I n t e r n a t i o n a l A i r p o r t . The set  second aim o f the Q u e s t i o n n a i r e was  of c r i t e r i a c o u l d be e s t a b l i s h e d .  to o b t a i n d a t a so t h a t a  Firms f u l f i l l i n g  these  criteria  c o u l d , i n f u t u r e , choose an a i r p o r t l o c a t i o n f o r t h e i r o p e r a t i o n s . example, i n Chapter  For  IV c e r t a i n c h a r a c t e r i s t i c s o f s u i t a b l e f i r m s i n the  Case Study Area were i l l u s t r a t e d .  A c o n s i d e r a b l e number o f  D i s t r i b u t i o n , D i s t r i b u t i o n , and M a n u f a c t u r i n g centage of t h e i r p r o d u c t i o n components.  wholesale  f i r m s imported a l a r g e per-  T h i s s i t u a t i o n demanded t h a t  q u e s t i o n s be i n c l u d e d r e l a t i n g to i m p o r t s , e x p o r t s , and d i s t r i b u t i o n a r e a . Responses to such q u e s t i o n s would h e l p d e r i v e c r i t e r i a when the  responses  of f i r m s f a v o u r a b l e to the h y p o t h e s i s were compared. The  t h i r d aim o f the Q u e s t i o n n a i r e was  to c o l l e c t d a t a i n such a  form t h a t t a b u l a t i o n c o u l d be c a r r i e d out q u i c k l y and c o n c l u s i v e l y , a l l o w -  100  ing a maximum of comparison and correlation of responses.  The Questionnaire  was, therefore, to be short and concise with objective 'answer boxes' or 'multiple choice' answers to most of the questions.  Qualitative rather  than quantitative 'boxes' were to be provided, since the quantity, for example, that would comprise 'periodic' travel was not known. Qualitative information was adequate for the comparison of relative data as long as recording standards were similar for each interview.  However, subjective  reactions were desired to questions dealing with air freight and the respondent's opinion of where it could best f i t into the firm's total distribution operations.  It was anticipated that respondents would elaborate on  their firm's opinion of air freight and any plans for its future use. Similarly, the question dealing with the hypothesis itself was considered to be best designed as 'open-ended', in hopes again that the respondent would discuss the concept, and so provide guidance for future work. Data was also required dealing with the size of each firm and the. products handled, manufactured, or shipped.  For size, the qualitative  terms 'small', 'medium', and 'large' were adopted.  These terms had no  absolute connotation and were intended to be relative.  They referred to  the differences in size between the forty selected firms for interview. Products handled were recorded in the event that a more definitive description of the businesses within each Category and Type was desired later. The fourth aim of the Questionnaire was that i t be equally applicable to the four Categories and twelve Types of industrial concerns interviewed.  To this end each question was so worded that the suitable noun  or verb could be inserted, and therefore apply to the particular respondent.  For some respondents, certain questions were not relevant (such as  air freight for Construction companies—corporate travel here being the  101 main i n t e r e s t ) .  I n i t i a l l y one q u e s t i o n n a i r e was e s t a b l i s h e d f o r each o f  the f o u r I n d u s t r i a l C a t e g o r i e s — e a c h q u e s t i o n n a i r e the s p e c i f i c d a t a d e s i r e d from t h a t C a t e g o r y . then combined and a r r a n g e d i n a s c h e d u l e .  b e i n g o r i e n t e d towards  The f o u r q u e s t i o n n a i r e s  were  T h i s ranged from t h e g e n e r a l t o  the p a r t i c u l a r , t h e o b j e c t i v e t o t h e s u b j e c t i v e , and from t h e l e s s important  t o the more i m p o r t a n t  data.  Comment on t h e i n d i v i d u a l q u e s t i o n s attached  f o l l o w s (see  Questionnaire  to t h i s Appendix): 1-2  These were s t r a i g h t - f o r w a r d , and r e l a t e d t o t h e r e g i o n a l economic c h a r a c t e r i s t i c s s t a t e d i n Chapter I V ;  3  T h i s was i n s e r t e d t o determine i f goods b e i n g s h i p p e d i n o r out were e x p e c t e d t o i n c r e a s e . I n c r e a s e d p o s s i b l e use o f a i r f r e i g h t could r e s u l t ;  4  The aim o f t h i s was t o d e t e r m i n e t h e p r e s e n t major c a r r i e r s f o r both sides of a firm's operation;  5(a)  T h i s r e f e r r e d t o c o r p o r a t e t r a v e l , p l u s t h e degree o f p o s s i b l e shipment o f p a r t s o r components between v a r i o u s p l a n t s o r o u t l e t s o f an i n t e g r a t e d p r o c e s s o r c h a i n ;  (b) T h i s was i n t e n d e d t o d e t e r m i n e the degree o f i m p o r t a n t i n t e r c i t y or i n t e r n a t i o n a l corporate t r a v e l ; 6(a)  T h i s was i n c l u d e d i n an a t t e m p t t o d i s c e r n t h e amount o f p o t e n t i a l s a l e s o r e x e c u t i v e t r a v e l o r i g i n a t i n g from t h e Vancouver f i r m , and t h e degree o f p o s s i b l e shipment t o o u t s i d e o r g a n i z a t i o n s r e g a r d l e s s o f what t h e r e s p o n d e n t s t a t e d i n question 6(c);  (b) The i n t e n t o f t h i s was t o determine the i m p o r t a n c e o f t h e o u t s i d e o r g a n i z a t i o n s , and a c t as a check on 6 ( a ) ; (c) The degree o f s a l e s o r e x e c u t i v e t r a v e l from the l o c a l f i r m , as s t a t e d by t h e r e s p o n d e n t was to be d e t e r m i n e d by t h i s question; (d) T h i s was an a t t e m p t t o a s c e r t a i n p r e s e n t use o f a i r t r a v e l ; 7(a) An o b v i o u s r e f e r e n c e was made i n t h i s q u e s t i o n t o c o r p o r a t e a i r t r a v e l and t h e p o s s i b i l i t y o f a i r c r a f t ownership a f f e c ting plant site c r i t e r i a ; (b) T h i s was n e c e s s a r y to e s t a b l i s h t h e r e l e v a n c e  of 7(a);  102 8(a) T h i s was i n t e n d e d as a s t r a i g h t - f o r w a r d q u e s t i o n to e s t a b l i s h the f i r m ' s p r e s e n t use o f a i r f r e i g h t . I t was d e s i g n e d as a l e a d - i n f o r the subsequent q u e s t i o n ; (b) An attempt was made h e r e t o determine any t r e n d s t h a t were d e v e l o p i n g , . i r r e s p e c t i v e o f the answers t o s u c c e s s i v e questions; 9(a) T h i s was i n t e n d e d as an i n t r o d u c t i o n t o the s u b j e c t i v e q u e s t i o n s t o f o l l o w . A l s o , i t was i n t e n d e d to d i s c e r n whether o r n o t t h e respondent's f i r m had a c t u a l l y c o n s i d e r e d t h e u t i l i z a t i o n o f a i r f r e i g h t (and c o n s e q u e n t l y , the degree o f awareness o f the medium). The answer to t h i s q u e s t i o n c o u l d be b e l i e d by the responses g i v e n to the remainder o f t h e questions; (b-d)These were s u b j e c t i v e i n n a t u r e and were i n t e n d e d to f i t the compartments i n 9 ( a ) . However, i t was expected t h a t p o s s i b l y two o f these a l t e r n a t i v e s c o u l d be used s i m u l t a n e o u s l y i f i t appeared t h a t the r e s p o n d e n t ' r e j e c t e d ' a i r f r e i g h t , b u t i n r e a l i t y (by the t e n o r o f h i s r e p l y ) , a c t u a l l y had n o t considered i t ; 10  T h i s q u e s t i o n was s u b j e c t i v e and c o n d i t i o n e d by t h e assumpt i o n s c o n t a i n e d i n i t s t e x t . I t was d e s i g n e d to s t i m u l a t e d i s c u s s i o n o f the h y p o t h e s i s . I n a d d i t i o n , a comparison o f r e a c t i o n to t h i s q u e s t i o n w i t h responses i n q u e s t i o n s 1-9 was a n t i c i p a t e d .  . P e r s o n a l i n t e r v i e w s were c a r r i e d out w i t h the g e n e r a l manager, managing d i r e c t o r , p r e s i d e n t , o r r e g i o n a l manager, (depending o f each o f the Study Group f i r m s .  The top m a n a g e r i a l  on t h e f i r m )  l e v e l was chosen  because q u e s t i o n s o f p l a n t l o c a t i o n and t r a n s p o r t a t i o n p o l i c y a r e n o r m a l l y s e t t l e d by p o l i c y d e c i s i o n s .  I n t e r v i e w s were c a r r i e d out i n the normal  manner, most o f t e n i n a q u i e t o f f i c e .  Responses on the whole were e x c e l l e n t .  The time spent on each i n t e r v i e w v a r i e d from t e n m i n u t e s i n one case o f a v e r y busy e x e c u t i v e to over an hour f o r i n t e r e s t e d r e s p o n d e n t s .  The p e r i o d  over w h i c h i n t e r v i e w s were c a r r i e d o u t l a s t e d t h r e e weeks, a l t h o u g h n o t a l l weekdays were u t i l i z e d .  103  DATE  QUESTIONNAIRE A i r F r e i g h t and A i r T r a v e l as F a c t o r s i n the L o c a t i o n o f I n d u s t r y a t o r near Vancouver I n t e r n a t i o n a l Airport  Name o f F i r m D e s c r i p t i o n of Operation  Products Handled, Manufactured,  Size of Firm  o r Shipped_  104 1.  A p p r o x i m a t e l y what p e r c e n t a g e o f y o u r ( p r o d u c t i o n components, s e r v i c e , s t o c k , b u s i n e s s ) , ( i s i m p o r t e d from, a r r i v e s from) o u t s i d e the lower M a i n l a n d Region? (by v a l u e ) 75-100  2.  25-50  0-25  A p p r o x i m a t e l y what p e r c e n t a g e o f your ( p r o d u c t , s e r v i c e , s t o c k , b u s i n e s s ) ( i s e x p o r t e d t o , c a r r i e d out i n , d e s t i n e d f o r ) p o i n t s o u t s i d e the Lower M a i n l a n d Region? (by v a l u e ) 75-100  3.  50-75  50-75  25-50  0-25  Do you a n t i c i p a t e i n c r e a s i n g the p e r c e n t a g e o f e i t h e r o f the above i n the near f u t u r e ? More i m p o r t s , i n c o m i n g b u s i n e s s , e t c . More e x p o r t s , o u t g o i n g b u s i n e s s , . e t c .  4.  % %  What i s the main c a r r i e r f o r y o u r ( s h i p m e n t s , b u s i n e s s ) , i . e . , which c a r r i e r conveys the b u l k of y o u r i m p o r t s and/or e x p o r t s ) ? Imports, incoming business Exports, outgoing business  Truck "  Rail  Ship  Air  "  "  "  5. (a) I s your f i r m p a r t o f a l a r g e r c o r p o r a t e s t r u c t u r e ? Branch o f an i n t e g r a t e d n e t S u b s i d i a r y to p a r e n t f i r m i n USA S u b s i d i a r y to p a r e n t f i r m i n E. Canada Other (b) Do p e r s o n n e l o f the v a r i o u s s u b s i d i a r i e s and the head o f f i c e o f t e n t r a v e l back and f o r t h ? Never  Rarely  Periodically  Continuously  6.(a) Do you have ( o t h e r a f f i l i a t e d warehouses, f a c t o r i e s , b u s i n e s s e s , s e r v i c e s ) or a (marketing, promotional) o r g a n i z a t i o n i n areas outs i d e o f the Lower M a i n l a n d Region? None  A Few  Several  Large Number  (b) Are these (warehouses, f a c t o r i e s , s e r v i c e s , m a r k e t i n g or p r o m o t i o n a l o r g a n i z a t i o n s ) v e r y s i g n i f i c a n t as compared w i t h your Vancouver operation? Not A p p r e c i a b l y Other  P a r w i t h Vancouver  Very S i g n i f i c a n t -:-  (c) How o f t e n do your s a l e s and/or e x e c u t i v e p e r s o n n e l take b u s i n e s s or s a l e s t r i p s o u t s i d e the Lower M a i n l a n d Region? Never  Rarely  Periodically  Continuously  105 (d) What i s the normal form o f t r a v e l by t h e s e p e r s o n n e l ? Car 7. (a)  Rail  Air  Do you o r your a f f i l i a t e s craft? None  One  Other  own o r p l a n on p u r c h a s i n g c o r p o r a t e a i r -  Two  More than two  (b) How i m p o r t a n t i s t h i s a i r c r a f t to your d a i l y ( b u s i n e s s , s a l e s , service)? L i t t l e Importance  Supplementary to o t h e r means  Convenient and Helps Customer R e l a t i o n s 8. (a)  Indispensable  I n what degree do you p r e s e n t l y use a i r f r e i g h t f o r y o u r d a i l y import-export operations? Never  Emergency O n l y  Periodically  Regularly  Heavily (b) Has your use. of a i r f r e i g h t i n c r e a s e d i n r e c e n t months? Decreased  L i t t l e Change  Increasing Slowly  Considerable Increase 9. (a)  Have you e v e r c o n s i d e r e d ( i n c r e a s i n g your u t i l i z a t i o n  of) a i r f r e i g h t  f o r y o u r ( p r o d u c t s , p r o d u c t i o n components, s t o c k , s e r v i c e s ) ? Yes, and i n t e n d to do so  Yes, and r e j e c t e d i t  No, haven't thought o f i t (b) I f " R e j e c t e d " , what were your p r i n c i p a l o b j e c t i o n s to i t s use? Too e x p e n s i v e  Unreliable  Route S t r u c t u r e D i d n ' t S u i t Requirements E s t a b l i s h e d D i s t r i b u t i o n System i s S a t i s f a c t o r y Other  106 I f "Yes", i n what way  w i l l you make i n c r e a s e d use of a i r f r e i g h t ?  I f "No", do you t h i n k a i r f r e i g h t c o u l d f i t i n t o your i m p o r t - e x p o r t , s e r v i c e s ) scheme i n the f u t u r e ?  (distribution,  I n the USA i t has been o b s e r v e d t h a t c e r t a i n i n d u s t r i e s , y o u r s amongst them, have i n some i n s t a n c e s shown a p r e f e r e n c e f o r a i r p o r t l o c a t i o n , e i t h e r because of an i n c r e a s i n g use of a i r f r e i g h t f o r ( d i s t r i b u t i o n of p r o d u c t s , i m p o r t of s t o c k s or components, r e c e i p t and shipment of goods)'or from an i n c r e a s i n g r e l i a n c e on the c o r p o r a t e a i r c r a f t or a i r l i n e t r a v e l f o r s a l e s and s e r v i c e i n the m a r k e t i n g area. I n your o p i n i o n do you t h i n k t h a t your o p e r a t i o n c o u l d , a t some f u t u r e d a t e , become... . ...so r e l i a n t upon a i r f r e i g h t as an e c o n o m i c a l and e f f i c i e n t means of ( d i s t r i b u t i n g your p r o d u c t s , i m p o r t of your s t o c k or components, means of shipment) t h a t a ( f a c t o r y , warehouse, s h i p p i n g t e r m i n a l ) s i t e e i t h e r on the edge, or near Vancouver I n t e r n a t i o n a l A i r p o r t would be d e s i r a b l e ? ...so r e l i a n t upon c o r p o r a t e a i r t r a v e l as an e f f e c t i v e means f o r s a l e s and s e r v i c e t h a t a s i t e e i t h e r on the edge of or near Vancouver I n t e r n a t i o n a l A i r p o r t would be d e s i r a b l e ? ( T h i s assumes t h a t : adequate and s u i t a b l e l a n d i s a v a i l a b l e , a t a r e a s o n a b l e p r i c e ; s e r v i c e s such as sewer,.water and d r a i n a g e are a v a i l a b l e ; e x c e l l e n t r o a d c o n n e c t i o n s w i t h the M e t r o p o l i t a n a r e a a r e i n e x i s t e n c e ; z o n i n g r e g u l a t i o n s are f a v o u r a b l e ; and t h a t market c o n d i t i o n s i n d i c a t e the f e a s i b i l i t y of r e - l o c a t i o n . )  APPENDIX IV  APPENDIX IV  INTRODUCTORY LETTER The U n i v e r s i t y of B r i t i s h Columbia F a c u l t y o f Graduate S t u d i e s Community and R e g i o n a l P l a n n i n g Vancouver 8, B.C. F e b r u a r y 15, 1963  Sir: Your f i r m has been s e l e c t e d as one o f a sample number o f wholes a l e , m a n u f a c t u r i n g , d i s t r i b u t i o n , and c o n s t r u c t i o n e n t e r p r i s e s i n a survey to be conducted f o r a M a s t e r o f A r t s T h e s i s P r o j e c t i n Community and R e g i o n a l P l a n n i n g . R a i l , s h i p , and r o a d t r a n s p o r t a t i o n f a c i l i t i e s have been c o n s i d e r a b l e f o r c e s i n the growth and d i r e c t i o n of our c i t i e s . Industrial locat i o n h a s , to a l a r g e degree, been dependent upon those f a c i l i t i e s , b o t h from a dependence on the t r a n s p o r t medium i t s e l f and through the a t t r a c t i o n o f s e r v i c e e s t a b l i s h m e n t s w h i c h b e n e f i t from i n d u s t r i e s a l r e a d y e s t a b l i s h e d . R e s i d e n t i a l and commercial growth a r e d i r e c t l y r e l a t e d to this process. W i t h the above i n mind, the impact on i n d u s t r i a l l o c a t i o n o f the newest form o f t r a n s p o r t - a i r c r a f t and the t e r m i n a l a i r p o r t - i s a v a l i d and opportune s u b j e c t f o r s t u d y . I n the U n i t e d S t a t e s and E a s t e r n Canada the e x t e n s i v e use o f a i r f r e i g h t and c o r p o r a t e a i r c r a f t by some types o f i n d u s t r i e s such as your has i n d u c e d them to seek a l o c a t i o n on the p e r i p h e r y o f a major a i r p o r t . T h i s has had a c o n s i d e r a b l e e f f e c t on the d e v e l opment o f b o t h the a i r p o r t and the e n t i r e community. My T h e s i s i s d i r e c t e d towards an i n v e s t i g a t i o n o f t h i s a i r p o r t i n d u s t r i a l l o c a t i o n p r o c e s s , and i t s v a l i d i t y or a p p l i c a b i l i t y i n the Vancouver M e t r o p o l i t a n A r e a . I t i s t h e r e f o r e n e c e s s a r y t h a t I o b t a i n the r e a c t i o n s and o p i n i o n s of the i n d u s t r i e s i n v o l v e d . I have compiled a s h o r t q u e s t i o n n a i r e , d e a l i n g w i t h such s u b j e c t s as: a rough p e r c e n t a g e of your p r o d u c t , s t o c k , or s e r v i c e t h a t i s imported from or e x p o r t e d to p o i n t s o u t s i d e the Lower M a i n l a n d ; your p r i m a r y means of t r a n s p o r t f o r these commodities a t the p r e s e n t time; a rough i d e a of the amount o f t r a v e l by your salesmen and e x e c u t i v e s ; your p r e s e n t use or non-use o f a i r f r e i g h t and a i r t r a v e l ; and your o p i n i o n s on the s u b j e c t i n g e n e r a l as a 108  109 f a c t o r i n a p o s s i b l e r e - l o c a t i o n of y o u r f i r m i n the near o r d i s t a n t t future. I would l i k e to c a l l d u r i n g the day between F e b r u a r y 19th and March 6 t h . I hope t h a t you w i l l be a b l e to g i v e me 15 - 20 minutes of y o u r t i m e . I would be happy to r e t u r n i f I s h o u l d c a l l a t an i n c o n v e n i e n t moment. Sincerely,  John L. N o r t h e y  APPENDIX V  APPENDIX V  QUESTIONNAIRE RESPONSE AND TABULATION METHOD  A f t e r the I n t r o d u c t o r y L e t t e r s had been d i s t r i b u t e d , i t became evident  t h a t two o f the t h r e e s e l e c t e d r e s e a r c h l a b o r a t o r i e s were n o t  suitable.  S i m i l a r l y , the secondary c h o i c e o f t h i s type was n o t s u i t a b l e  for interview.  Therefore,  one a d d i t i o n a l C o n s t r u c t i o n firm.was added to  the M i s c e l l a n e o u s  C a t e g o r y , and the t o t a l number o f t h a t Category r e d u c e d  from s i x to f i v e .  Thus, the t o t a l number o f f i r m s f o r study d e c r e a s e d to  thirty-nine. Of the t h i r t y - n i n e f i r m s s e l e c t e d f o r i n t e r v i e w , t h i r t y - o n e were a c t u a l l y f u l l y responsive.  Of those n o t c o v e r e d , two were 'not a p p l i c a b l e '  as t h e i r p r o d u c t s o r s e r v i c e s were found to be o f a n a t u r e n o t s u i t a b l e f o r a i r f r e i g h t or a i r t r a v e l .  One M a c h i n e r y - M e t a l M a n u f a c t u r e r , and one F r e i g h t  F o r w a r d i n g F i r m were so d e s i g n a t e d .  Because o f c o r p o r a t e  s t r u c t u r e , one  warehouse and D i s t r i b u t i n g S e r v i c e f i r m was found to be u n s u i t a b l e f o r study.  The f i r m was a s u b s i d i a r y o f a n o t h e r , l a r g e r f i r m which had a l r e a d y  been i n t e r v i e w e d .  S i n c e p o l i c y was most l i k e l y determined a t the h i g h e r  l e v e l s o u r c e , i t was d e c i d e d  t h a t i t w o u l d be r e p e t i t i o u s t o o b t a i n the  o p i n i o n o f a s u b s i d i a r y t h a t was charged w i t h the c a r r y i n g - o u t o f a s p e c i f i c p a r t o f the l a r g e r f i r m ' s o p e r a t i o n . response'.  F i v e f i r m s were c l a s s e d as "no  Two gave f l a t r e f u s a l s — a T e x t i l e M a n u f a c t u r e r , and an i n t e r -  nationally-known  Construction firm.  One D i s t r i b u t i n g S e r v i c e f i r m was  c l a s s e d as 'no r e s p o n s e ' a f t e r f o u r v i s i t s f a i l e d t o p r o g r e s s 111  beyond a  112 rather truculent office staff.  One E l e c t r i c a l M a n u f a c t u r e r c o u l d n o t be  i n t e r v i e w e d because o f t h e p r e s s o f b u s i n e s s . s t r u c t i o n f i r m was q u i t e i l l cated f o r i n t e r v i e w s .  The p r e s i d e n t o f one Con-  and u n a v a i l a b l e throughout t h e p e r i o d a l l o -  U n f o r t u n a t e l y , no o t h e r p e r s o n a t t h i s f i r m  supply the d e s i r e d i n f o r m a t i o n .  could  T a b l e 1 shows t h e p a t t e r n o f a c t u a l r e -  sponse .  TABLE 1 QUESTIONNAIRE RESPONSE COMPARED WITH STUDY GROUP SIZE  Category  Study Group  Wholesale D i s t r i b u t i o n Manufacturing Distribution Miscellaneous Total  T a b l e 2 was d e s i g n e d s u l t s of the Q u e s t i o n n a i r e . were c l a s s i f i e d as b e i n g 'Unfavourable'  1  Response  16 10 8 5  16 7 5 3  39  31  and c o n s t r u c t e d i n o r d e r t o c o r r e l a t e t h e r e On t h e b a s i s o f r e a c t i o n s t o Q u e s t i o n  Favourable' ,  1  towards t h e h y p o t h e s i s .  Favourable  10, f i r m s  With Reservations , o r  'Favourable'  1  was d e f i n e d as meaning  t h a t p r o x i m i t y t o t h e a i r p o r t c o u l d d e f i n i t e l y be a f a c t o r i n f u t u r e r e l o c a t i o n o f a firm's present operation.  'Favourable  With Reservations' i n -  c l u d e d those f i r m s who agreed i n p r i n c i p l e w i t h t h e h y p o t h e s i s , b u t who would r e q u i r e e i t h e r c e r t a i n o t h e r f a c t o r s to be i n e f f e c t , o r some form o f r e o r i e n t a t i o n of t h e i r present operation before into their locational c r i t e r i a .  the a i r p o r t c o u l d  enter  Those f i r m s c l a s s e d as 'Unfavourable' d i d  n o t c o n s i d e r t h a t a l o c a t i o n on o r near the a i r p o r t would e n t e r i n t o f u t u r e locational considerations.  . 113 The f i r m s i n t e r v i e w e d were d i v i d e d f a i r l y e q u a l l y amongst the t h r e e Preference Groupings.  E i g h t f i r m s responded  ' F a v o u r a b l y ' ; e l e v e n were i n  the 'Favourable W i t h R e s e r v a t i o n s ' c l a s s ; and the r e m a i n i n g t w e l v e were 'Unfavourable . 1  In Table 2, each P r e f e r e n c e Group was d e r i v e d f o u r C a t e g o r i e s and t w e l v e Types.  d i v i d e d v e r t i c a l l y i n t o the  Q u e s t i o n s 1 to 9 of the Q u e s t i o n -  n a i r e were ranged down the s i d e o f the T a b l e .  Q u e s t i o n n a i r e s were then  t a b u l a t e d to d i s c e r n whether o r n o t common f a c t o r s o r c o r r e l a t i o n s c o u l d be a s c e r t a i n e d between P r e f e r e n c e Groups, C a t e g o r i e s , Types, o r o p e r a t i o n a l criteria. The h o r i z o n t a l d i v i s i o n s of T a b l e 2 c o r r e s p o n d i n most cases to the answer boxes i n the Q u e s t i o n n a i r e S c h e d u l e . either:  Where d i f f e r e n c e s o c c u r ,  c h o i c e s were never i n d i c a t e d , thus no need f o r t a b u l a t i o n e x i s t e d ;  the q u e s t i o n response c o u l d be e a s i l y u n d e r s t o o d i n a more condensed f o r m , thus some responses were combined; s u b j e c t i v e q u e s t i o n s were answered w i t h s u f f i c i e n t u n i f o r m i t y to p e r m i t the c a t e g o r i z a t i o n o f answers; was  the q u e s t i o n  a p p l i c a b l e i n so few cases t h a t i t was n o t c o n s i d e r e d n e c e s s a r y to  tabulate i t .  Q u e s t i o n 7 on the purchase and use o f c o r p o r a t e a i r c r a f t i s  an example o f the l a t t e r c o n d i t i o n .  Only t h r e e f i r m s s i g n i f i e d  aircraft  ownership a t the p r e s e n t time o r i n the p a s t , and o n l y one o f these f i r m s p r e s e n t l y m a i n t a i n s a machine i n the Study A r e a . To complement T a b l e 2, a t a b u l a r comparison of q u e s t i o n 9 (a) to (d) was ' c a r r i e d o u t .  Table 3 i s c o n s t r u c t e d so as to show t h i s  comparison.  The q u e s t i o n was p r i m a r i l y s u b j e c t i v e i n n a t u r e , as an attempt was made to o b t a i n the r e s p o n d e n t s ' r e a c t i o n s i n terms of t h e i r own f e e l i n g s and s p e c i a l f e a t u r e s and problems  of each f i r m .  the  By means o f T a b l e 3 the  v a r i o u s reasons f o r p r e s e n t and f u t u r e use o r non-use o f a i r f r e i g h t can ' .  114 be v i e w e d i n terms o f t h e r e s p o n d e n t s ' aim was t o determine  r e a c t i o n to the h y p o t h e s i s .  i f these reasons were common t o any f i r m s ,  of P r e f e r e n c e Group, Category  The  regardless  o r Type.  TABLE 2 TABULATION OF QUESTIONNAIRE RESPONSE: BY PREFERENCE GROUP, CATEGORY AND TYPE  Favourable Question  Subject  Size  Imports  1  (%) 2  Exports  (%)  Possible Re.sponses  A  T  Small Med. Large  2  1 2  1  2  2  3  1  2  1 1  1 1 1  1  75-100 50- 75 25- 50 0- 25 75-100 50- 75 25- 50 0- 25  Whol/. . D i s t . E  M  Manu. M  E  Dist. T  FF  1  3  Increase  Exports Imports  1  1  4  Main Carriers  Truck Rail Ship Air  2 1  2 1  2  2 1  .1  1 1  1 1  1 1  1  1 1  5(a)  Corp. Struc.  Outside Lo c a l  (b)  Corp. Exec. Travel  . Rare Period. Cont.  Outside Orgs.  Nil . Some  6(a)  1 1  2  1 2  2 1  D  Misc. C  R  115 TABLE 2--Continued  Favourable Question  6(a)  (b)  (c)  (d)  8(a)  (b)  9 (a-d)  Subject  Possible Responses  Outside Orgs.  Several Many  Sig. of 6(a)  Little Par V r . Very  Sales and Exec. Travel  Rare Period. Cont.  Travel Mode  Car Air Other  Pres. Use o f Air Freight  Never Emerg. Period. Reg. Heavily  Recent Incr.  Little Slowly Consid. Incr.  Future Use  None Emerg. Period. Reg. Heavily  A  T 1  E  M  Dist.  Manu.  Whol. , D i s t . M  E  T  FF  1 •  1  1  1  2  1  2  1  2  2 1  1  1 1  2 1  1  2  1 1 1  1 1  1  1 (1)  1 1  1 2  2  1  2  2  1 1 1  1  1 1  D  Misc. C  R  116  TABLE 2--Continued  Favourable With Question  Subject  Possible Ke—  ponses Size  1  Small Med. Large  Imports (%)  75-100 50- 75 25- 50 0- 25  Exports (%)  75-100 50-75 25- 50 0- 25  3  Increase  Exports Imports  4  Main Carriers  Truck Rail Ship Air  2  5(a)  (b)  6(a)  Whol. A  T  Dist. E  M  2  2  Dist.  Manu. M  E  1 1  1  1  Reservations  T  FF  Misc. D  R 1  1  1  1 1  1  2  1  2  C  1  1  1  1 1  1 1  1  2  1  1  2 1  1  1  1  2 2 1  2  1 .1  1 1 1  1  1 1  1  Corp. Struc.  Outside Local  Corp. Exe c. Travel  Rare Period. Cont.  1  Outside Orgs.  Nil Some  1  2 1  1 2  2  1  1  1 1  1  1 1 1  _.  1 1  1 2  1  1 1  1  117 TABLE 2--Continued  Favourable With Reservations Question  6(a)  (b)  (c)  (d)  8(a)  (b)  9 (a-d)  Subject  Possible Responses  Outside Orgs.  Several Many  Sig. of 6(a)  Little Par V r . Very  Sales and Exec. Travel  Rare Period. Cont.  Travel Mode  Car Air Other  Pres. Use o f Air Freight  Never Emerg. Period. Reg. Heavily  Recent Incr.  Future Use  Little .Slowly Consid. Incr. None Emerg. Period. Reg. Heavily  Whol. D i s t . A  T  E  Manu. M  M  E  Dist. T  FF  Misc. D  C  R  1  1  1 1  1 1  1 1  1  1  •1 1  1 1  1 2  2  1  2  1  1  1  1  1 1  2 1  2  1 1  (2)  1  1 1  1  1  1 1  2 1  1  1  1  . 1  1  1 (1) (1)  1  1  1 1  1  (2) 1  (D (1)  1 (1)  118  TABLE 2--Continued  Unfavourable Question  Subject  Possible Responses  Whol. A  Small Med. Large  1  Imports •(%)  75-100 50- 75 25- 50 0-25  1  Exports (7.)  75-100 50- 75 25- 50 0- 25  3  Increase  Exports Imports  4  Main Car  Truck Rail Ship Air  Size  1  2  riers  5(a)  (b)  6(a)  Corp. Struc.  Outside Local  Corp. Exec. Travel  Rare Period. Cont.  Outside Orgs.  Nil Some  T  Dist. E  M  M  E  3  1  3  1-  T 1 1  1 1  2  1  2  Misc.  Dist.  Manu.  FF  D 1  2 1 1 1  2 1 1  1  1  1  3 3  1 1  1  1  1  1  2  1 2  1  1 1  2 2  1 1  3  1  1  1  1 1  2  1 1  1  1  3  1  21  2  1  1 1  1  C  R  119 TABLE 2--Continued  Unfavourable Question  6(a)  (b)  (c)  (d)  8(a)  (b)  9 (a-d)  Subject  Possible Responses  Whol. D i s t . A  T  E  Outside Orgs.  Several Many-  1  Sig. of 6(a)  Little Par V r . Very  1  Sales and Exec. Travel  Rare Period. Cont.  Travel Mode  Car Air Other  Pres. Use o f Air Freight  Never Emerg. Period. Reg. Heavily  Recent Incr.  Little Slowly Consid. Incr.  1  None Emerg. Period. Reg. Heavily  (1) 1  Future Use  Manu.  Dist".  M  M  E  T  1  1  2  1  2  1  2  2  1 1  2 1  2  2  .1  FF  Misc. D  1  1  1  1  2 1  1  1 1  1 2  1  2  1  . 1  1  2  1 1  2 (1)  2  1 1  2  2  1  2 (1)  1  1  . 1  2 1  1  1  1  C  R  120 TABLE 2--Continued  Notes: Types of f i r m s a r e a b b r e v i a t e d A T E M FF D C R  -  i n the f o l l o w i n g manner:  Auto P a r t s ; T e x t i l e s and F a b r i c s ; E l e c t r i c a l and E l e c t r o n i c A p p a r a t u s ; C o n s t r u c t i o n and I n d u s t r i a l M a c h i n e r y ; F r e i g h t Forwarding; D i s t r i b u t i o n S e r v i c e , S h i p p i n g , and Warehousing; Construction; R e s e a r c h and Development L a b o r a t o r i e s .  I n the o r i g i n a l t a b u l a t i o n t a b l e the responses o f each f i r m were r e c o r d e d i n such a manner t h a t the f i r m s remained i n d i v i d u a l l y d i s t i n c t . I t was t h e r e f o r e p o s s i b l e to make a comparison between the q u e s t i o n s thems e l v e s and the responses of i n d i v i d u a l f i r m s to each q u e s t i o n . Where the number of of f i r m s i n t h a t P r e f e r e n c e a p p r o p r i a t e f o r one or more than the number o f f i r m s i n p a r t i c u l a r question d i d not  r e s p o n s e s to any q u e s t i o n exceeds the number Group, two or more answers were e q u a l l y f i r m s . S i m i l a r l y , a number o f r e s p o n s e s l e s s t h a t P r e f e r e n c e Group i n d i c a t e s t h a t the a p p l y to one or more f i r m s .  I n c e r t a i n c a s e s , r e s p o n s e s to some q u e s t i o n s were somewhat a t odds w i t h responses to p r e v i o u s q u e s t i o n s . I n such c a s e s , r e s p o n s e s to subsequent q u e s t i o n s i n d i c a t e d by e a r l i e r responses were added to the t a b u l a t i o n . They a r e i n d i c a t e d by p a r e n t h e s e s ( ) .  121 TABLE 3 PRESENT AND FUTURE USE OF AIR FREIGHT, BY FIRM, . PREFERENCE GROUP, CATEGORY.AND TYPE  Preference Category and Type  Whol-. Dist.  A  T  M  Group  Firm . Favourable  1  T h i s c o r p o r a t i o n w i l l make i n c r e a s e d use o f a i r f r e i g h t f o r h i g h t u r n o v e r items t h a t a r e n o t i n s t o c k . B e t t e r customer s e r v i c e r e s u l t i n g i s w o r t h t h e h i g h e r c o s t . The f i r m has developed a c o n t a i n e r t h a t i s packed e v e r y day a t the Windsor p l a n t , and s e n t a i r f r e i g h t on a s p e c i f i e d s c h e d u l e d f l i g h t . P a r t s thus a r r i v e a t the same time each day. A i r f r e i g h t was too e x p e n s i v e u n t i l r a i l and t r u c k express r a t e s increased.  2  I n f u t u r e , . c o m b i n d d d w i t h IBM computors, t h i s f i r m w i l l s h i p r e g u l a r l y by a i r from the Toronto c e n t r a l warehouse t o f i e l d warehouses a l l p a r t s t h a t have a h i g h t u r n o v e r , h i g h v a l u e , and l o w c u b i c volume. F i e l d i n v e n t o r i e s w i l l , t h e r e f o r e , be r e d u c e d . A p a r t s c o n t a i n e r i s p r e s e n t l y s h i p p e d r e g u l a r l y each day from Toronto t o Vancouver.  3  A l l s t o c k i s p r e s e n t l y s e n t e x c l u s i v e l y by a i r . p o l i c y w i l l continue.  4  New p o o l s e r v i c e s have b r o u g h t a i r f r e i g h t r a t e s down so t h a t they a r e now a l m o s t comparable w i t h r a i l o r t r u c k e x p r e s s r a t e s . T h i s f i r m used t o use a i r f r e i g h t o n l y f o r r u s h o r d e r s ; however, they now w i l l use i t as a normal means o f r e p l e n i s h i n g t h e i r l o c a l i n v e n t o r y , e s p e c i a l l y f o r European f a b r i c s .  5  T h i s f i r m w i l l n o t make e x t e n s i v e use o f a i r f r e i g h t i n the f o r e s e e a b l e f u t u r e . The expense would be too g r e a t on the types o f b u l k y and l i g h t goods h a n d l e d . F r e i g h t c o s t s must be h e l d down.  6  T h i s f i r m w i l l use a i r f r e i g h t more e x t e n s i v e l y i n f u t u r e . Customer s e r v i c e w i l l improve to one t o two days d e l i v e r y from a c e n t r a l warehouse i n T o r o n t o , f o r s l o w moving i t e m s . A i r f r e i g h t i s an e x c e l l e n t s a l e s t o o l . L o c a l i n v e n t o r i e s w i l l be c u t a l s o .  This  122  TABLE 3 — C o n t i n u e d  P r e f e r e n c e Group Category and Type  P'ist, FF IM<5f..  Firm Favourable  7  A i r f r e i g h t w i l l be used more as customers become aware o f i t s advantages. A i r r a t e s a r e coming down i n r e l a t i o n t o r a i l r a t e s . F o r example, i t i s now cheaper to s h i p t o S e a t t l e by a i r e x p r e s s than by r a i l . Scheduled cargo f l i g h t s i n the USA w i l l d e c r e a s e r a t e s s t i l l f u r t h e r , and make d e l i v e r i e s more r e g u l a r  8  A l l f r e i g h t h a n d l e d i s p r e s e n t l y s h i p p e d by a i r . Use of a i r f r e i g h t w i l l i n c r e a s e as b u s i n e s s i n c r e a s e s , a l t h o u g h o v e r a l l r a t e s t r u c t u r e i s d i c t a t e d by the airlines. I n c r e a s e d s e r v i c e t o o t h e r c i t i e s , and i n t e r n a t i o n a l s e r v i c e t o the U.K. and Japan a r e projected.  Favourable With Whol. Dist.  Reservations  A  9  E  10  A i r f r e i g h t w i l l be used more than i t i s a t p r e s e n t . C e r t a i n items a r e s e n t o n l y by a i r t o reduce damage. D i s t r i b u t i o n system i s s w i t c h i n g t o a c e n t r a l warehouse, IBM computors, and a i r f r e i g h t , i n o r d e r t o r e d u c e f i e l d i n v e n t o r i e s and i d l e s t o c k t h a t may be r e q u i r e d elsewhere i n the c o u n t r y .  11  A i r f r e i g h t w i l l n o t be used g r e a t l y i n t h e f u t u r e . The f i r m i s n o t s h i p p i n g c o n t i n u o u s l y and has no need f o r l a r g e warehouses. Speed i s n o t a normal r e quirement f o r day-to-day s t o c k i t e m s . Emergency r e quirements a r e l o w , and the company can o f t e n g e t them f a s t e r by t r u c k from f a c t o r y i n L e t h b r i d g e than i t can by a i r . ( L e t h b r i d g e i s on r e s t r i c t e d a i r l i n e s e r v i c e ) . E a s t e r n Canadian f a c t o r y i s i n a c i t y w i t h o u t an a i r p o r t .  This f i r m w i l l not u t i l i z e a i r f r e i g h t appreciably more than i t does a t p r e s e n t . P r o d u c t s a r e too heavy, and a i r f r e i g h t i s too e x p e n s i v e .  123 TABLE 3 — C o n t i n u e d  P r e f e r e n c e Group Category and Type  Firm Favourable With Reservations  12  A i r f r e i g h t i s too e x p e n s i v e to be used any more than i t i s a t p r e s e n t . P a r t s and normal s t o c k a r e too heavy f o r more than emergency a i r shipment.  13  A i r f r e i g h t i s too e x p e n s i v e f o r shipment o f normal i n v e n t o r y i t e m s , e s p e c i a l l y s i n c e t r a n s p o r t charges must be passed on to customers. Emergency use w i l l continue.  E  14  T h i s f i r m i n t e n d s t o use a i r f r e i g h t more i n f u t u r e , as r a t e s become more r e a s o n a b l e f o r the w e i g h t of t h e i r p r o d u c t . Time i s a b i g p r o b l e m , as the f i r m produces a consumable p r o d u c t . Items must be on the s p o t when needed, o r b u s i n e s s i s l o s t . A i r f r e i g h t i s a v a l u a b l e t o o l i n such c a s e s .  D i s t . FF  15  A i r f r e i g h t w i l l be used v e r y e x t e n s i v e l y i n f u t u r e , as i t i s now. Volume w i l l go up about 1007=. as the f i r m e n t e r s i n t o arrangements w i t h o t h e r f i r m s f o r air freight distribution.  D  16  The f i r m w i l l n o t a d v o c a t e g r e a t e r use o f a i r f r e i g h t , b u t w i l l use i t more when asked to do so by i t s customers. I t i s too e x p e n s i v e f o r o t h e r than items such as machine p a r t s .  C  17  Air  18  The l o c a t i o n of f u t u r e j o b s w i l l d e t e r m i n e whether o r n o t a i r f r e i g h t w i l l be u s e d . I f a p a r t i s needed i t i s f l o w n i n i n any a r e a ; however, i f the a r e a i s i s o l a t e d a l l goods would be a i r f r e i g h t e d . The f i r m n o r m a l l y doesn't have too much need f o r a i r freight.  Whol. Dist.  Manu.  Misc.  M  f r e i g h t i s n e v e r used.  124 TABLE 3--Continued  Preference Category and Type  Misc.  R  Group  Firm Favourable  With  Reservations  The e s t a b l i s h e d f l o w o f components i s adequate f o r t h i s f i r m , however a l o t of e l e c t r o n i c components c o u l d be b r o u g h t i n by a i r f r e i g h t . Rates a r e comparable to r a i l express r a t e s .  19  Unfavourable  Whol. Dist.  Manu.  i  A  20  Most o f the goods f o r t h i s f i r m a r e p i c k e d up from l o c a l warehouses, thus l i t t l e need f o r a i r f r e i g h t exists.  E  21  T h i s f i r m w i l l not i n c r e a s e t h e i r use o f a i r f r e i g h t i n the f u t u r e . .Speed i s d e s i r a b l e , b u t the c o s t of i n c r e a s e d l o c a l i n v e n t o r i e s i s n o t as g r e a t as the c o s t o f i n c r e a s e d use of a i r f r e i g h t . The f i r m would l o v e to make i n c r e a s e d use o f i t , as i t i s an e x c e l l e n t s a l e s t o o l , b u t i t i s too e x p e n s i v e . Western d i s t r i b u t o r s a r e n o t a l l o w e d to mark up the p r i c e o f an i t e m to r e f l e c t t r a n s p o r t c o s t s — t h u s the cheapest means a v a i l a b l e must be u s e d .  22  Weight and b u l k of the p r o d u c t i s too g r e a t to a l l o w i n c r e a s e d use o f a i r f r e i g h t i n the f u t u r e . A l s o , few r e p l a c e m e n t p a r t s a r e needed. The e n t i r e u n i t must be r e p l a c e d when i t b r e a k s down.  23  A i r f r e i g h t i s p r e s e n t l y used e x t e n s i v e l y . T h i s use w i l l continue, e s p e c i a l l y f o r fast-moving v a l u a b l e i t e m s . The b u l k of t h i s f i r m ' s s t o c k , however, i s too heavy or slow-moving f o r e c o n o m i c a l use o f a i r freight.  M  24  A i r f r e i g h t w i l l n o t be u t i l i z e d any more i n f u t u r e than i t i s now (emergency o n l y ) . .Product, though v a l u a b l e , i s e x t r e m e l y heavy.  M  25  T h i s f i r m w i l l c o n t i n u e to use a i r f r e i g h t f o r the odd emergency r e q u i r e m e n t . T h e i r p r o d u c t i s too heavy  125  TABLE  3—Continued  P r e f e r e n c e Group Category and Type  Manu.  M  E  T  Dist.  D  Eirm Unfavourable  for  25  r e g u l a r use o f the medium.  26  A i r f r e i g h t w i l l be used o n l y f o r r a r e emergency s h i p ment o f consumables. Proper inventory c o n t r o l should negate the need f o r a i r f r e i g h t .  27  A i r f r e i g h t w i l l n o t be used. P r o d u c t s and components are too heavy, thus a i r f r e i g h t i s too c o s t l y .  28  A i r f r e i g h t i s p r e s e n t l y h e a v i l y u t i l i z e d ; however, the f i r m w i l l n o t i n c r e a s e t h i s use because the i n c r e a s e d c o s t v e r s u s the b e t t e r customer r e l a t i o n s h i p s g a i n e d i s out o f p r o p o r t i o n .  29  T h i s f i r m c o u l d w e l l use a i r f r e i g h t more a t the end of the summer season, when demand can be g r e a t on dep l e t e d r e t a i l s t o c k s . Time i s then an i m p o r t a n t f a c t o r . P o o l a i r shipments to Toronto a r e now cheaper than i n the p a s t : A i r f r e i g h t i s o f l i t t l e use a t the b e g i n n i n g o f the s e a s o n — t i m e i s then of l i t t l e importance.  30  A i r f r e i g h t i s too e x p e n s i v e f o r the shipment o f p r o d u c t s a t any t i m e . T r a n s p o r t c o s t s must be passed on to the customer, and the l a t t e r a r e n o t n o r m a l l y in a hurry.  31  In  t h i s b u s i n e s s , the customers must make the s e l e c t i o n of the mode o f t r a n s p o r t a t i o n . They have n o t s i g n i f i e d the u s e . o f a i r f r e i g h t as y e t ,  Notes: See Note 1, T a b l e 2, Appendix V, f o r the f i r m Type code. Each response i s as g i v e n by the p e r s o n i n t e r v i e w e d .  FOOTNOTES  127  FOOTNOTES  CHAPTER I  1 W.L. P e r e i r a , " A i r p o r t s , P l a n e s , and P e o p l e , " P r o c e e d i n g s o f the American S o c i e t y o f C i v i l E n g i n e e r s , V o l . L X X X I I I , No. AT2: J o u r n a l o f the A i r T r a n s p o r t D i v i s i o n ( D e c e m b e r 1 9 5 7 ) , P r o c e d u r e Paper 1476, p. 3. 2 J.R.L. A n d e r s o n , " L i v i n g W i t h A i r p o r t s , " Manchester G u a r d i a n Weekly, October 25, 1962,.p..12. 3 A i r p o r t Development and O p e r a t i o n C o n f e r e n c e , M i n u t e s ( S y r a c u s e , N.Y., 1 9 5 9 ) ( A l b a n y : S t a t e o f New Y o r k , Department o f Commerce, 1959), p. 49. 4 U . S . . P r e s i d e n t s ' A i r p o r t Commission, The A i r p o r t and I t s Neighbours (Washington: U.S. Government P r i n t i n g O f f i c e , 1952), p. 6. 5 W.H. L e v i n g s , "Community O p p o r t u n i t i e s and R e s p o n s i b i l i t i e s i n the Development and A d m i n i s t r a t i o n of A i r p o r t s , " Report-on F i r s t Northwest A i r p o r t Management Conference (Eugene: Bureau of M u n i c i p a l R e s e a r c h and S e r v i c e , U n i v e r s i t y o f Oregon, 1953), p. 34. 6 J.E. P e t e r s o n , A i r p o r t s f o r J e t s ( C h i c a g o : American S o c i e t y o f P l a n n i n g O f f i c i a l s , 1959), p. 70. 7 C o l l e g e o f B u s i n e s s A d m i n i s t r a t i o n o f B o s t o n C o l l e g e , The R o l e o f A v i a t i o n and A i r p o r t s i n the F u t u r e Development o f G r e a t e r B o s t o n , The P r o c e e d i n g s of a Conference a t the C o l l e g e of B u s i n e s s A d m i n i s t r a t i o n ( C h e s t n u t H i l l , Mass.: C o l l e g e of B u s i n e s s A d m i n i s t r a t i o n o f B o s t o n C o l l e g e , May, 1958), p. 30. 8 A t l a n t a M e t r o p o l i t a n P l a n n i n g Commission, A i r p o r t A r e a Survey; Memorandum o f Recommendations, A Study o f T r a f f i c Improvement Needs i n the Communities Near the A t l a n t a M u n i c i p a l A i r p o r t ( A t l a n t a : A t l a n t a M e t r o p o l i t a n P l a n n i n g Commission, 1957), p . l . 9 T u l s a M e t r o p o l i t a n A r e a P l a n n i n g Commission, 1975 M e t r o p o l i t a n T u l s a — A i r p o r t s and T h e i r R e l a t i o n s h i p s W i t h S u r r o u n d i n g Land Uses ( T u l s a : T u l s a M e t r o p o l i t a n A r e a P l a n n i n g Commission, June, 1960), p . l . 10 P o r t of New York A u t h o r i t y , A R e p o r t on A i r p o r t Requirements and S i t e s i n the M e t r o p o l i t a n New York and New J e r s e y Region (New York: P o r t o f New York A u t h o r i t y , 1961), p. 5. 11 I b i d . , . p . 18.  128 12 A t l a n t a M e t r o p o l i t a n P l a n n i n g Commission, A i r p o r t A r e a Survey: . . . , p. 2 13 P. E. G e i s s a l , " I n t e g r a t i n g the A i r p o r t i n t o M e t r o p o l i t a n P l a n n i n g , " P r o c e e d i n g s , ASCE, V o l . LKXXV, No. AT3: J o u r n a l of the A i r T r a n s p o r t D i v i s i o n ( J u l y , 1959), P r o c e d u r e Paper 2107, p. 34. 14 C. L. Hamman, i n " A i r p o r t S i t e s : Good o r Bad?" Development, IV (March, 1957), 16.  Industrial  15 R. Nathan, I b i d . , p. 18. 16 S.P. Walsh, I b i d . , p. 15.. 17 P a s s a i c County P l a n n i n g B o a r d , A i r p o r t Survey f o r the P a s s a i c County A r e a (New J e r s e y : P a s s a i c County P l a n n i n g B o a r d , J a n u a r y , 1959), p . 17. 18 P o r t o f New York A u t h o r i t y , A R e p o r t on A i r p o r t R e q u i r e ments . . . , p. 21. 19 P e t e r s o n , A i r p o r t s f o r J e t s , p.  9.  20 I b i d . , p. 58.  CHAPTER I I  1 Vancouver T e c h n i c a l P l a n n i n g B o a r d , Vancouver I n t e r n a t i o n a l A i r p o r t I n d u s t r i a l Study (Vancouver: Vancouver T e c h n i c a l P l a n n i n g B o a r d , 1959), p.25. 2 L. W. B u r t o n , J r . , "A New I n t e r n a t i o n a l A i r p o r t , " Q u a r t e r l y , XVI ( J a n u a r y , 1962), 71.  Traffic  3 Lewis and C u l l i t o n , The R o l e o f A i r F r e i g h t i n P h y s i c a l D i s t r i b u t i o n ( B o s t o n : D i v i s i o n o f R e s e a r c h , Graduate S c h o o l o f B u s i n e s s A d m i n i s t r a t i o n , H a r v a r d U n i v e r s i t y , 1956), p. 8. 4 I b i d . , p. 9 5 C o l l e g e o f B u s i n e s s A d m i n i s t r a t i o n o f B o s t o n C o l l e g e , The R o l e o f A v i a t i o n . . . , p. 38. 6 T. J . H a r r i s , i n " A i r T r a n s p o r t Seen as S i t e F a c t o r , " I n d u s t r i a l Development, I I (September-October, 1955), 17. 7 Lewis and C u l l i t o n , The R o l e o f A i r F r e i g h t . . . , p. 69.  129 8 A t l a n t a M e t r o p o l i t a n P l a n n i n g Commission, A i r p o r t A r e a Survey: . . . , p. 5. 9 P a s s a i c County P l a n n i n g B o a r d , A i r p o r t Survey « . . , p. 1. 10 R. D. S i v e r s o n , i n I n d u s t r i a l Development,  IV (March,  1957)  17. 11 M. D. Peach, I b i d . , p..16. 12 H a r r i s , i n I n d u s t r i a l Development, 1955), 17.  I I (September-October,  13 H. H. H o w e l l , "The New F e d e r a l - A i d A i r p o r t Program," P r o c e e d i n g s , ASCE, V o l . L X X X I I , No. AT2: J o u r n a l o f the A i r T r a n s p o r t D i v i s i o n (May, 1956), P r o c e d u r e Paper 989, p. 1. 14 A i r p o r t Development and O p e r a t i o n C o n f e r e n c e , M i n u t e s , p. 50. 15 C o l l e g e o f B u s i n e s s A d m i n i s t r a t i o n o f B o s t o n C o l l e g e , The R o l e o f A v i a t i o n . . . , p. 93. 16 I n d u s t r i a l Development,  IV (March, 1957), 14.  17 I b i d .  CHAPTER I I I  1 P a s s a i c County P l a n n i n g B o a r d , A i r p o r t Survey . . . , p. 12. 2 Fresno County and C i t y P l a n n i n g Commission, Land Use and the Fresno A i r T e r m i n a l ( F r e s n o : Fresno County and C i t y P l a n n i n g Commission, A u g u s t , 1959), p. 3. 3 Southern C a l i f o r n i a L a b o r a t o r i e s of S t a n f o r d Research I n s t i t u t e , Economic P r i n c i p l e s f o r P r i c i n g A i r p o r t S e r v i c e s , SRI P r o j e c t No. 1-3100 (South Pasadena, C a l i f o r n i a : S t a n f o r d Research I n s t i t u t e , November, 1961), p. 15. 4 Lewis and C u l l i t o n , The R o l e o f A i r F r e i g h t . . .,, p. 27. Tulsa —  5 T u l s a M e t r o p o l i t a n A r e a P l a n n i n g Commission, 1975 . . . , p. 4. 6  Ibid.  7 P e t e r s o n , A i r p o r t s f o r J e t s , p. 13.  Metropolitan  130 8 P a s s a i c County P l a n n i n g B o a r d , A i r p o r t Survey . ... , p. 8 9 Southern C a l i f o r n i a L a b o r a t o r i e s o f S t a n f o r d Research I n s t i t u t e , Economic P r i n c i p l e s . . . , p. 50 10 C o l l e g e o f B u s i n e s s A d m i n i s t r a t i o n o f B o s t o n C o l l e g e , The R o l e o f A v i a t i o n . . . , p. 91.  r  11 I b i d . , p. 72.  9  •  •  12 P o r t of New York A u t h o r i t y , A R e p o r t on A i r p o r t j p • 2X *  Requirements  13 P a s s a i c County P l a n n i n g B o a r d , A i r p o r t Survey . . . , p.  9.  14 I b i d . , p. 30. 15 " L e t t e r s , " London D a i l y Times, December 22, 1962, p. 11.  Tulsa —  16 T u l s a M e t r o p o l i t a n A r e a P l a n n i n g Commission, . . . , p. 1.  1975 M e t r o p o l i t a n  17 R. I . S t r i c k l a n d , "Ground T r a n s p o r t a t i o n a t New York I n t e r n a t i o n a l A i r p o r t , " P r o c e e d i n g s , ASCE, V o l . LXXXIV, No. HW2: J o u r n a l of the Highway D i v i s i o n (May, 1958), P r o c e d u r e Paper 1623, p. 3 18 H. V i c a r i o t , " P a r i s — O r l y A i r p o r t and i t s New T e r m i n a l A r e a , " P r o c e e d i n g s , ASCE, V o l . LXXXV, No. AT3, P r o c e d u r e Paper 2125, p. 93 19 W. E. C u l l i n a n , J r . , " A i r p o r t C o n f i g u r a t i o n , " P r o c e e d i n g s , ASCE, V o l . L X X X I I I , No. AT2, P r o c e d u r e Paper 1478, p. 1.  CHAPTER IV 1 D. F. Putnam, Canadian Regions ( T o r o n t o : J . M. Dent and Sons (Canada) L t d . , 1954), p. 466. 2 Lower M a i n l a n d R e g i o n a l P l a n n i n g B o a r d , M a n u f a c t u r i n g I n d u s t r y i n the Lower M a i n l a n d o f B r i t i s h Columbia (New Westminster: Lower M a i n l a n d R e g i o n a l P l a n n i n g B o a r d , 1960), Appendix 3, T a b l e 1. 3 I b i d . , p. 16. 4 I b i d . , p. .51. 5 I b i d . , p. 20. 6 I b i d . , p. 22.  131 7 I b i d . , p. 13 8 I b i d . , " p . 26. 9 I b i d . , p.,-.\36. 10 I b i d . 11 I b i d . , p. 39> 12 I b i d . , p . 38. 13 I b i d . , p. 42. 14 I b i d . , p. V 15 I n t e r v i e w w i t h W. I n g l i s , Manager, Vancouver I n t e r n a t i o n a l A i r p o r t , January 29, 1963. I n t e r v i e w w i t h M. T h w a i t s , B r i t i s h Columbia Research C o u n c i l , January 29, 1963. 16 Trans Canada A i r l i n e s -- A i r F r e i g h t Rates f o r S p e c i f i c Commodities (Trans Canada A i r l i n e s , 1962-63).  APPENDIX I  1 Vancouver T e c h n i c a l P l a n n i n g B o a r d , Vancouver I n t e r n a t i o n a l A i r p o r t . . . , Appendix A ( l ) a .  BIBLIOGRAPHY  BIBLIOGRAPHY  BOOKS E s t a l l , R. C., and Buchanan, R. 0. I n d u s t r i a l A c t i v i t y and Economic Geography. London: H u t c h i n s o n U n i v e r s i t y L i b r a r y , 1961. I n t e r n a t i o n a l C i t y Managers' A s s o c i a t i o n . L o c a l P l a n n i n g A d m i n i s t r a t i o n . 3d ed. E d i t e d by M. McLean. Chicago: The I n t e r n a t i o n a l C i t y Managers' A s s o c i a t i o n , 1959. L e g a u l t , A. R. Highway and A i r p o r t E n g i n e e r i n g . P r e n t i c e - H a l l , 1960.  Englewood C l i f f s , N. J . :  L e w i s , H. T., and C u l l i t o n , J . W . The R o l e o f A i r F r e i g h t i n P h y s i c a l D i s t r i b u t i o n . B o s t o n : D i v i s i o n o f R e s e a r c h , Graduate S c h o o l o f B u s i n e s s A d m i n i s t r a t i o n , H a r v a r d U n i v e r s i t y , 1956. Putnam, D. F. C a n a d i a n R e g i o n s . L t d . , 1954'.  Toronto:  J . M. Dent and Sons (Canada)  S e a l y , K. R. The Geography o f A i r T r a n s p o r t . U n i v e r s i t y L i b r a r y , 1957.  London:  Hutchinson  Wise, M. J . I n d u s t r i a l L o c a t i o n , A G e o g r a p h i c a l Approach. (London S c h o o l o f Economics and P o l i t i c a l S c i e n c e ) London: G. B i l l and Sons, L t d . , 1959. Wood, J . W. A i r p o r t s and A i r T r a f f i c : t h e A i r p o r t Needs o f Your Community. New Y o r k : Coward-McCann, 1949. )  REPORTS AND  BULLETINS  Alameda County P l a n n i n g Department. I s a " P l a n n e d I n d u s t r i a l D i s t r i c t " a F e a s i b l e Development f o r Vhe A r e a South o f t h e Hayward A i r p o r t ? Oakland: Alameda County P l a n n i n g Department, 1958. A t l a n t a M e t r o p o l i t a n P l a n n i n g Commission. A i r p o r t A r e a Survey; Memorandum of Recommendations. A Study o f T r a f f i c Improvement Needs i n the Communities Near \he A t l a n t a M u n i c i p a l A i r p o r t . A t l a n t a : Atlanta M e t r o p o l i t a n P l a n n i n g Commission, 1957. 133  134 B o s t o n C o l l e g e , C o l l e g e of B u s i n e s s A d m i n i s t r a t i o n . The R o l e of A v i a t i o n and A i r p o r t s i n the F u t u r e Development of G r e a t e r B o s t o n . The P r o c e e d i n g s of a C o n f e r e n c e a t the C o l l e g e of B u s i n e s s A d m i n i s t r a t i o n . C h e s t n u t H i l l , Mass.: C o l l e g e of B u s i n e s s A d m i n i s t r a t i o n of B o s t o n C o l l e g e , May, 1958. F r e s n o County and C i t y P l a n n i n g Commission. Land Use and the F r e s n o A i r T e r m i n a l . Fresno: F r e s n o County and C i t y P l a n n i n g Commission, August, 1959. I n t e r n a t i o n a l A i r T r a n s p o r t A s s o c i a t i o n . A i r p o r t B u i l d i n g s and Aprons. M o n t r e a l : T e c h n i c a l S e c r e t a r i a t , LATA, 1956. Lower M a i n l a n d R e g i o n a l P l a n n i n g B o a r d . A i r p o r t s f o r the Lower M a i n l a n d . New Westminster: Lower M a i n l a n d R e g i o n a l P l a n n i n g Board, 1953. . M a n u f a c t u r i n g I n d u s t r y i n the Lower M a i n l a n d of B r i t i s h C o l u m b i a . New Westminster: Lower M a i n l a n d R e g i o n a l P l a n n i n g Board, 1960. v  P a s s a i c County P l a n n i n g B o a r d . A i r p o r t Survey f o r the P a s s a i c County A r e a . New J e r s e y : P a s s a i c County P l a n n i n g Board, J a n u a r y , 1959. P e t e r s o n , J . E. A i r p o r t s f o r J e t s . O f f i c i a l s , 1959.  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