The importance of trade in services and environmental amenities to the location of producer service activities in the western United States

The use of business services has had an increasingly important effect on economic performance in many industries, with the ability of firms in a given location to respond to changes in external markets, production techniques and material supplies often determined by the local provision of business information. Consequently, an increasing research effort has focused on the characteristics and role of producer services activities at the regional and urban economies. This paper examines the nature and extent of external linkages of a sample of independent producer service firms in the two regional centers of Denver and Salt Lake City. Preliminary results are presented from a larger survey of local and regional factors important to the location of producer service activity using survey data collected from producer service activities in metropolitan and non-metropolitan places in Colorado and Utah. Findings are presented in three main areas of interest: the importance and geographic sources of subcontracting of business services by producer service establishments, particularly those establishments where scientific and technical occupations are an important location factor; the geographic and sectoral distribution of service sales; and the relative importance of various environmental amenities to the location of producer service activities.