Highways Galore Kelly Edwards, the recently appointed vice president of development for HOG, Inc., a

Highways Galore

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Kelly Edwards, the recently appointed vice president of
development for HOG, Inc., a highway construction company in central
Pennsylvania, had just returned from meeting with the senior management team of
the company. At the meeting, Harry O. Growbaker, president of HOG, Inc., had
reported on his most recent meetings with the Pennsylvania Department of
Transportation in Harrisburg. The focus of the presentation and discussion was
a new state funding initiative that would support regional highway projects
throughout the state. The highways, bridges, and overall infrastructure
throughout the state needed improvements and expansion. The development of
significant shale gas and oil drilling had strained the existing network but
had provided additional tax funds for needed public projects. Harry O.
Growbaker was convinced that HOG, Inc. was in a unique position to participate,
but that they needed to be proactive to demonstrate the economic benefit and
impact of such stimulus spending in central Pennsylvania. Harry asked Kelly to
provide some discussion points for the next meeting of the senior management

Kelly decided to meet with two of her senior staff members,
Shaun Knight and Barb Collins, to help with this assignment. During the course
of their discussion, Kelly pointed out the lack of efficient and effective
highway connections throughout the center of the state. Interstate 80 was a
major east–west corridor for interstate traffic between the Midwest and major
East Coast cities, but with limited impact overall in much of central
Pennsylvania, particularly for north–south flows. The potential economic growth
in central Pennsylvania was creating a need for a more effective north–south
link and also more efficient local roadways. Barb Collins felt that a proposed
highway link would be attractive to the state and also the federal government.

Shaun, who had participated in many economic impact studies,
pointed out the possible synergism with the University Park campus of Penn
State and perhaps some of their satellite locations throughout the state. He
noted the development of the research park at Penn State’s University Park
Campus and the new University president’s interest in helping the state with
economic development and playing a more active role in encouraging new
companies based upon applied research at the university. Shaun felt that there
was much opportunity to encourage and enhance such development with improved

Kelly Edwards became excited as she listened to this
discussion and was convinced that they could develop a list of discussion
points for the next senior management meeting that could then be developed into
a white paper for the state and Federal Departments of Transportation.

You have recently been hired by HOG, Inc., and Ms. Edwards
has asked you to develop an initial set of discussion points that would
indicate the economic and, perhaps, social benefits from new highway links in
central Pennsylvania.

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