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Gain site selection process v2 (1)
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How companies make decisions of where to locate new facilities
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Gain site selection process v2 (1)
1.
©2013GAIN TARGETED BUSINESS ATTRACTION The
Site Selection Process
2.
©2013GAIN ⠕ Partners -
Fred Burkhardt & Greg Fullington ⠕ Comprehensive Economic Development Services ⠕ Business Retention, Expansion, Recruitment and Marketing ⠕ Exclusive GAINtrax Database: ⠕ Tracks Domestic Corporations ⠕ Covering 40 Specific Business and Industrial Sectors ⠕ 35 Major National/International Site Selection Firms
3.
©2013GAIN Phase 1 –
Project Planning Phase 2 – Community Screening Phase 3 – Site Visits Phase 4 – Final Assessment
4.
©2013GAIN ⠕ Company Needs
Are Aligned with Business Goals ⠕ Needs Drive The Parameters of the Location Search ⠕ Needs Determine Which Communities Are Chosen.
5.
©2013GAIN ⠕ Main Reasons
Why a Business May Decide to Seek a Site: ⠕ Proximity to Its Customers ⠕ Establish a Strategic Presence in a New Market ⠕ Better Labor Force ⠕ Changes/Limitations in Logistics ⠕ Financial Advantages
6.
©2013GAIN Typical Preliminary Pool 93% Pool after
1st Cut 6% Finalists 1% THREE STAGES OF THE TYPICAL SITE SELECTION PROCESS
7.
©2013GAIN Corporate CEO 5% Corporate CFO 35% Corporate
COO 25% Outside Real Estate Brokers 10% Site Selectors 25% 65% OF ALL SEARCHES ARE CONDUCTED BY CORPORATE EXECUTIVES
8.
©2013GAIN Dialogue with industry peers Articles
in newspapers & magazines Rankings/Surveys Meetings with economic development organizations Business Travel 50.4% 46.0% 35.6% 28.0% 27.2% THE FIVE TOP INFLUENCERS OF EXECUTIVE PERCEPTIONS
9.
©2013GAIN 0% 10% 20%
30% 40% 50% 60% 70% 80% 90% Wall Street Journal Daily/Local Newspapers The New York Times Industry & Trade Magazines The Economist Bloomberg Business Week Forbes USA Today Financial Times CFO Magazine Time
10.
©2013GAIN ⠕ Specific critical
factors often limit or eliminate states & communities ⠕ Manufacturing & distribution operations are first narrowed by the analysis of ⠕ Logistics ⠕ Freight Costs ⠕ Time to Market
11.
©2013GAIN ⠕ Proximity to
Customers ⠕ Labor Costs ⠕ Labor Skill Levels ⠕ State & Local Business Climate ⠕ Minimum or Maximum Size of Community ⠕ Access to Internet ⠕ Proximity to Highways and Commercial Transportation ⠕ Viability of Industrial Buildings ⠕ Seismic & Climatic factors ⠕ Availability and Reliability of Utilities ⠕ Security
12.
©2013GAIN ⠕ Communities are
Cut from the Short List Because: ⠕ They Do Not Meet Project Requirements ⠕ Have Not Communicated that they Can Meet Project Requirements ⠕ Substandard State of Readiness
13.
©2013GAIN ⠕ The Requests
for Detailed Information Begins ⠕ Can Be Made Directly and Indirectly ⠕ Through the State or Other Points of Contact. ⠕ Their Decision Process is Now on a Tight Time Frame. ⠕ Little Time Research and Package the Required Information ⠕ Requires Development of a Package Meeting Basic Standards ⠕ Individually Customized to Meet the Specific Request
14.
©2013GAIN ⠕ Leading employers ⠕
Status of unionization ⠕ Workforce educational level ⠕ Access to continuing education & training ⠕ Payroll costs ⠕ Average Salaries ⠕ Utilities (Capacity, Reliability & Cost) ⠕ Access to suppliers ⠕ Presence of competitors ⠕ Quality of life, along the lines important to the company ⠕ Statutory process ⠕ State & local incentives ⠕ Real Estate Availability ⠕ Relocation Incentives ⠕ Other areas TBD DATA POINTS NORMALLY REQUIRED FOR EVALUATION
15.
©2013GAIN ⠕ Labor ⠕ Utilities ⠕
Transportation ⠕ Taxes ⠕ Real Estate ⠕ Travel ⠕ Communications ⠕ Availability of Quality Labor ⠕ Quality of Education & Training ⠕ Transportation & Utility services ⠕ Cost of Living ⠕ Quality of Life ⠕ Leadership Attitudes ⠕ Real Estate Availability COST FACTORS NON-COST FACTORS
16.
©2013GAIN ⠕ IF THE
PROSPECT IS AT THIS STAGE, YOU’RE ON THE SHORT LIST ⠕ Project Teams: Site Consultant, Client Members, State/Local Personnel ⠕ Length of Visit - Usually One Full Day ⠕ May Visit Multiple Area Sites ⠕ Considerations: Community Image, Neighborhoods, Housing & Quality of Life ⠕ May Meet with Major Employers & Local Elected Leaders ⠕ May Request a Preliminary Incentive Package ⠕ Very Mindful of the Degree of Cooperation and Professionalism Demonstrated by the Community
17.
©2013GAIN ⠕ Real Discussions
About Incentives Now Take Place ⠕ A Final Report is Prepared that Includes: ⠕ Refined Operating Cost Pro Forma ⠕ Recommendation of Final Preferred Site
18.
©2013GAIN ⠕ Prospect Review
and Assessment of: ⠕ Incentives ⠕ Real Estate ⠕ Overall Community ⠕ Review of Final Rankings ⠕ Notification of final location
19.
©2013GAIN Newspapers & Magazines Internet Social Media Conferences &
Trade Shows Financial Reports Industry Trends Databases 80 % 70 % 60 % 50 % Community Profile & Resource Assessment Community Demographics Available Sites & Buildings Government Attitude Taxes & Incentives Workforce Characteristics Company Profile & Needs Assessment Access to Market Access to Raw Materials Access to Labor Special Needs Cost of Operating Drill Down produces pools of firms that match the target profile. GAIN considers an 80% match as a high value target for recruitment
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