Transportation costs are obviously a very important part of the manufacturing supply chain. Being located near your customers is very important. I think the location, for instance, of some of the Ontario steel mills makes them well-placed for supplying automotive components. It does certainly factor in. Commodity-based products also have a bit of a different dynamic. That is a little more tricky to understand, and how products come in from various countries.
On November 3rd, 2016. See this statement in context.