INDUSTRY: The North v. the South

Can a Northern manufacturer cut production costs by moving to the South? Many a manufacturer has answered yes and made the move in the belief that lower wages and taxes would enable him to produce more cheaply. Last week, in the current issue of the Harvard Business Review, Management Consultant John O. Tomb held up a warning finger. Says he: "As a section, the South no longer offers a guarantee of lower costs than the North."

The change is due chiefly to the rapid expansion which has already taken place in the South's economy. Between 1939 and 1951, sales of...

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