Chapter 240: Attracting Investment for Road Construction

"This problem is easy to solve. Once the road is built, the economy will recover eventually. When there are more factories, people will naturally come, and we won't need to worry as much as we do now!"

"No, no, no, this approach won't work. We can't base our business decisions on uncertain future prospects. However, you mentioned earlier that Argyle is giving away land for free, hoping to attract big companies to build factories. I am somewhat interested in this, but unfortunately, I can't think of any suitable projects at the moment. If you have any good suggestions, I might be able to help."

Good suggestions? Good business?

If Patterson had such great business ideas, he wouldn't be working at the FDIC!

Ignoring Carter's dismissive words, Patterson tried to keep persuading him to take over the failing bank. Realizing that he couldn't deceive Carter with usual rhetoric, Patterson's eyes began to scan the surroundings, seeking a new angle.

"I may not have great business ideas, but how about this—what do you think of the Japanese?"

"Not much," Carter replied instinctively, expressing his dislike for the Japanese without really understanding the context of the question.

"No, I mean, what about attracting some Japanese companies to build factories here? A lot of Japanese companies are interested in our land. Now, if we offer them free land to build factories, along with cheap labor, and considering our proximity to consumer markets and Savannah's port by the Atlantic, wouldn't it be appealing to them?"

"If the Japanese are interested, we could build an east-west highway directly connecting to Savannah's port. This would facilitate the import of raw materials and the export of products to Europe, making it a strategic hub!"

Hmm?

Carter was momentarily taken aback but quickly summoned a hotel server to bring him a map. After examining it, Carter realized that if a cargo ship set sail from Savannah's port to Morocco, Spain, France, or the UK, the distance was around six to seven thousand kilometers. In contrast, a ship from Japan would travel south, pass through the Strait of Malacca, cross the Bay of Bengal, traverse the Red Sea, enter the Mediterranean, and finally reach countries like Greece, Italy, and France—a total distance of at least seventeen thousand kilometers, almost three times longer!

Rubbing his chin, Carter suddenly sensed a glimmer of feasibility. A threefold reduction in transport distance would not only cut costs but also significantly improve efficiency!

Products could reach the market faster, reducing capital turnover time. The shortened distance would also mean fewer ships needed to complete the same transportation tasks, enhancing shipping efficiency and lowering the entry barrier for foreign trade.

Additionally, the United States itself is a major consumer of Japanese products. Building factories directly in the consumer market, producing and selling locally...

The more Carter thought about it, the more feasible it seemed. He habitually reached for a cigarette, only to find none in his pocket.

"Here, have one of mine!"

Seeing Carter's interest, Patterson quickly offered his cigarette and lit it for him.

"Thank you. You mentioned cheap labor earlier. Isn't the yen weak? Are Japanese workers' wages really higher than ours?"

Labor costs are a crucial factor in deciding where to build factories. Carter found it hard to believe that wages in Georgia, USA, were lower than in Japan.

"Absolutely, their wages are higher. Last year, their per capita disposable income reached 3.2 million yen. With the current exchange rate of about 250 yen to 1 dollar, that's around 12,800 dollars per year, which is higher than ours!"

Patterson nodded confidently, affirming that American wages were indeed lower than Japanese wages.

An average annual disposable income of 12,800 dollars implied that most Japanese workers earned about that much annually. Considering that disposable income doesn't equate to total income, Carter estimated that even the average Japanese worker earned at least 10,000 dollars a year.

Ignoring the meager 6,000-dollar annual income his workers currently received—which Carter knew was ridiculously low in the current inflationary environment—he understood that by next year, his workers' minimum annual income would need to rise to at least 8,600 dollars to break even. And even that figure paled in comparison to the Japanese workers' wages...

"Jim! Could you come over here for a moment?"

Realizing the growing feasibility of the idea, Carter knew he needed more than just Patterson's input. Conveniently, he had a top market analyst right there with him.

"Jim, what do you think of this plan's feasibility?"

After explaining Patterson's suggestion and his own thoughts, Carter asked the crucial question.

"It's feasible! However, I'd suggest extending the road further—from Columbus through Albany to Douglas, and finally linking to Savannah. Connecting this entire line makes more sense."

Jim examined the map and quickly provided his analysis.

"Columbus is the third-largest city in Georgia, with a population of around 300,000 and many factories and businesses. They definitely have trade needs. Even if they don't, Fort Benning certainly does!"

"Fort Benning is the largest infantry training base in the world, and Albany has a Marine Corps logistics base. Japan's defense procurement heavily relies on us. Building this route, in my opinion..."

"From Columbus to Albany, this route would enhance connectivity between these two cities, especially for military movements and exchanges. Additionally, all cities along this route could more quickly transport goods to Savannah. This would be the only east-west route parallel to Savannah."

"Selecting Japanese companies should focus on those producing dual-use (military and civilian) products or targeting European markets. Factories near Douglas could quickly send their products to Fort Benning for assembly, and the procured materials could be shipped back to Japan via the Panama Canal."

"Compared to shipping from California, this route shortens the distance by about 7,000 kilometers. So, military goods procurement and production can't be the core focus, but it might be an additional selling point. Sometimes, convincing them requires just a bit of added advantage. Honestly, I see more potential in this route for shipping military goods to Europe. If supplies from Fort Benning can be quickly transported to Savannah and then shipped to Europe, the entire route is under 7,000 kilometers."