Labour costs seem to be the only factor which is motivating Dan to shift operations to other cities but other factors need to be looked as well like
1. What are the what is the kind of Labour Union in the cities like Tennessee, Georgia etc, if there is strong union movement that means that eventually wage rate may increase in future thus nullifying the motive to shift in the first place.
2. what are the health safety and environmental laws in the cities like Tennessee, exposure to toxic chemicas may no be permitted in high levels in some states as compared to other, further there can be requirement for solvent recovery system which may lead to increased expense in other head.
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