Your SlideShare is downloading. ×
Gain site selection process v2 (1)
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Gain site selection process v2 (1)

260
views

Published on

How companies make decisions of where to locate new facilities

How companies make decisions of where to locate new facilities

Published in: Business, Real Estate

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
260
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
5
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. ©2013GAINTARGETED BUSINESS ATTRACTIONThe Site Selection Process
  • 2. ©2013GAIN⠕ Partners - Fred Burkhardt & Greg Fullington⠕ Comprehensive Economic Development Services⠕ Business Retention, Expansion, Recruitment andMarketing⠕ Exclusive GAINtrax Database:⠕ Tracks Domestic Corporations⠕ Covering 40 Specific Business and Industrial Sectors⠕ 35 Major National/International Site Selection Firms
  • 3. ©2013GAINPhase 1 – Project PlanningPhase 2 – Community ScreeningPhase 3 – Site VisitsPhase 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 aSite:⠕ Proximity to Its Customers⠕ Establish a Strategic Presence in a New Market⠕ Better Labor Force⠕ Changes/Limitations in Logistics⠕ Financial Advantages
  • 6. ©2013GAINTypicalPreliminary Pool93%Pool after 1st Cut6%Finalists1%THREE STAGES OF THE TYPICAL SITE SELECTION PROCESS
  • 7. ©2013GAINCorporate CEO5%Corporate CFO35%Corporate COO25%Outside RealEstate Brokers10%Site Selectors25%65% OF ALL SEARCHES ARE CONDUCTED BY CORPORATEEXECUTIVES
  • 8. ©2013GAINDialogue withindustry peersArticles innewspapers &magazinesRankings/Surveys Meetings witheconomicdevelopmentorganizationsBusiness Travel50.4%46.0%35.6%28.0% 27.2%THE FIVE TOP INFLUENCERS OF EXECUTIVE PERCEPTIONS
  • 9. ©2013GAIN0% 10% 20% 30% 40% 50% 60% 70% 80% 90%Wall Street JournalDaily/Local NewspapersThe New York TimesIndustry & Trade MagazinesThe EconomistBloomberg Business WeekForbesUSA TodayFinancial TimesCFO MagazineTime
  • 10. ©2013GAIN⠕ Specific critical factors often limit or eliminatestates & communities⠕ Manufacturing & distribution operations are firstnarrowed by the analysis of⠕ Logistics⠕ Freight Costs⠕ Time to Market
  • 11. ©2013GAIN⠕ Proximity to Customers⠕ Labor Costs⠕ Labor Skill Levels⠕ State & Local BusinessClimate⠕ Minimum or MaximumSize of Community⠕ Access to Internet⠕ Proximity to Highways andCommercial Transportation⠕ Viability of Industrial Buildings⠕ Seismic & Climatic factors⠕ Availability and Reliabilityof Utilities⠕ Security
  • 12. ©2013GAIN⠕ Communities are Cut from the Short List Because:⠕ They Do Not Meet Project Requirements⠕ Have Not Communicated that they Can MeetProject 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 RequiredInformation⠕ Requires Development of a Package Meeting BasicStandards⠕ Individually Customized to Meet the Specific Request
  • 14. ©2013GAIN⠕ Leading employers⠕ Status of unionization⠕ Workforce educational level⠕ Access to continuingeducation & training⠕ Payroll costs⠕ Average Salaries⠕ Utilities(Capacity, Reliability & Cost)⠕ Access to suppliers⠕ Presence of competitors⠕ Quality of life, along the linesimportant to the company⠕ Statutory process⠕ State & local incentives⠕ Real Estate Availability⠕ Relocation Incentives⠕ Other areas TBDDATA POINTS NORMALLY REQUIRED FOREVALUATION
  • 15. ©2013GAIN⠕ Labor⠕ Utilities⠕ Transportation⠕ Taxes⠕ Real Estate⠕ Travel⠕ Communications⠕ Availability of Quality Labor⠕ Quality of Education & Training⠕ Transportation & Utilityservices⠕ Cost of Living⠕ Quality of Life⠕ Leadership Attitudes⠕ Real Estate AvailabilityCOST FACTORS NON-COST FACTORS
  • 16. ©2013GAIN⠕ IF THE PROSPECT IS AT THIS STAGE, YOU’RE ON THESHORT 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 & Qualityof Life⠕ May Meet with Major Employers & Local Elected Leaders⠕ May Request a Preliminary Incentive Package⠕ Very Mindful of the Degree of Cooperation and ProfessionalismDemonstrated 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. ©2013GAINNewspapers& MagazinesInternetSocial MediaConferences& TradeShowsFinancialReportsIndustryTrendsDatabases80%70%60%50%Community Profile &Resource AssessmentCommunityDemographicsAvailable Sites &BuildingsGovernment AttitudeTaxes & IncentivesWorkforceCharacteristicsCompany Profile &Needs AssessmentAccess to MarketAccess to RawMaterialsAccess to LaborSpecial NeedsCost of OperatingDrill Down produces pools of firms thatmatch the target profile. GAIN considers an80% match as a high value target forrecruitment