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EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
EDABC Data Presentation
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EDABC Data Presentation

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What data should a community keep about itself? Here\'s a primer on what (and why)!

What data should a community keep about itself? Here\'s a primer on what (and why)!

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  • 1. The Numbers and the StoryTop Ten Site Selection Data StandardsEDABC WESTERN ECONOMIC DEVELOPMENT COURSE28-31 October, 2012
  • 2. ABOUT USCWS Consulting Group and Investment Consulting AssociatesComing together as one global team Locations in: • North America • Latin America • Europe • Asia Services: • Corporate Location Selection • Incentives Negotiation • Investment Advisory • Economic DevelopmentReal estate is a strategic asset. Each and every new location decision carries cost, workforce, andother implications. We provide our clients with the insight needed to quickly build solutions whichare flexible enough to evolve with the company’s changing needs. ©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 1
  • 3. INTRODUCTION Why Data Matters Which Pieces of Information are Most Important How do we Make Them Available A New Generation in FDI Advisory©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 2
  • 4. HOW ARE SITE LOCATION DECISIONS MADE Highly rigorous and completely objective process Consultants always have all of the pertinent information on all options The most qualified location is always the one chosen A New Generation in FDI Advisory©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 3
  • 5. HOW ARE LOCATION DECISIONS MADE Understand location “problem” and define success criteria. Examine Context of the location decision Identify communities that meet the basic thresholds (the must-have items on the list above) Evaluate the remaining ones based on the remaining tradeoffs Visit the communities themselves to evaluate remaining factors and begin negotiations A New Generation in FDI Advisory©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 4
  • 6. LOCATION DECISION PROCESS Strategic Location With Access to: Markets, materials and partners Resources/Business Environment: • Operating costs and incentives • Sites/buildings, labor/skills, training, utilities (cost/capacity), etc. • Does the community embrace us? Feasibility (Cost/Risk) Analysis© 2012, CWS Consulting Group LLC
  • 7. LOCATION DECISION PROCESSCompanies balance the relativeimportance of a combination of factors Business Goalswhen making location decisions Intangi- Workforce/ bles/ Talent Values• Combinations are important - No one factor drives the whole decision Internal Business and Location• Importance for one opportunity may External Strategy Environ- ment Partners differ greatly from others Infrastruc- Logistics ture and and Access Utilities All-In Costs ©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 6
  • 8. LOCATION DECISIONS PROCESS Data- and Model-Driven Interactive with Communities Field Validation Final Negotiations Planning and Initial Location and Strategy Screening Screening Location Selection Cost Modeling Def ined Strategy Universe of Short-List of and Evaluation Criteria Location Candidates Location Candidates Pref erred and Alternate Location(s) Consultative Data-Driven Qualitative & Quantitative© 2012, CWS Consulting Group LLC 7
  • 9. HOW DOES A LOCATION MODEL WORK Translates priorities and data into a relative weighting and ranking of options Highly data driven Difficulty comes when comparing data across different systems, or when data is incomplete Lack of data = Unknowns = Risk A New Generation in FDI Advisory ©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 8
  • 10. SAMPLE MODEL A New Generation in FDI Advisory©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 9
  • 11. SAMPLE MODEL Population andPopulation and Demographics 5.0% DemographicsEmployment Levels 10.0% Employment LevelsIndustry-Specific Employment 10.0% Industry-Specific 3.0% 2.5% 7.0% 5.0% EmploymentOccupation-Specific Employment (per 1000) 10.0%Occupation-Specific Salaries (Annual Mean 2.5% Occupation-Specific 10.0%2010) 30.0% Employment (per 1000)Education 10.0% Occupation-Specific Salaries (Annual Mean 10.0% 10.0% 2010)Transportation and Market Access 10.0% EducationTax Regime 2.5% 10.0% 10.0% Transportation and MarketClimate and Natural Hazards 2.5% AccessCrime 3.0% Tax RegimeQuality of Life 7.0% 30.0% Climate and Natural 100.0% Hazards Crime Quality of Life A New Generation in FDI Advisory ©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 10
  • 12. WHAT’S THE MOST IMPORTANT THING IN ALOCATION DECISION? Workforce Infrastructure Access Clusters/Networks Cost Regulatory Framework Tax/Incentives A New Generation in FDI Advisory©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 11
  • 13. SO WHAT INFORMATION SHOULD WE HAVE… …On our website …Ready when we receive a prospect call A New Generation in FDI Advisory© 2012, CWS Consulting Group LLC 12
  • 14. TOP TEN SITE SELECTION QUESTIONS(AND THE DATA BEHIND THEM)1. Is The Talent There2. Can I get There From Here3. Who Else is Like Me, and Who Can I Work With?4. Are My People Going to Want to Be There5. How Much Will It Cost?6. Can I Operate A……7. Is there a Place for My Stuff8. What do Your Finances Look Like?9. Are There Programs to Help Me10. Who Is Going to Help Me A New Generation in FDI Advisory©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 13
  • 15. 1. IS THE TALENT THERE  Specific Labor Availability • Demographic cohorts • Specific job titles • University Programs  Culture  Generally Accepted PracticesDEMOGRAPHICS BY AGE COHORTLABOR FORCE AND EMPLOYMENT TRENDSOCCUPATION AND INDUSTRY SURVEYEDUCATIONAL INSTITUTIONS AND PROGRAMMESREGULATORY ENVIRONMENT, UNIONIZATION A New Generation in FDI Advisory ©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 14
  • 16. IS THE TALENT THERE Talent In Number Currently Employed Talent OutLABOR MARKET Offer Extended Turnover 2nd Interview 1st Interview GREATER Business Unit Screen Productive Employee Base Retirement Growth or Contraction A New Generation in FDI Advisory ©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 15
  • 17. 2. CAN I GET THERE FROM HERE  Ability to Access Key Markets or Customers  Interaction with Transportation NetworkROADWAY CONNECTIONSRAIL NETWORK, FACILITIES, AND CONNECTIONSSEA AND AIRPORTSPASSENGER AND FREIGHT FACILITIES A New Generation in FDI Advisory ©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 16
  • 18. 3. WHO ELSE IS LIKE ME  The presence of peers in the area indicates existing talent, opportunities for teaming, likely suppliers, vendors, etcLIST OF TOP EMPLOYERS BY INDUSTRYRECENT OPENINGS/CLOSINGSCONTACT INFORMATION Source: Cluster Mapping Project, Harvard Business School A New Generation in FDI Advisory ©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 17
  • 19. AND, WHO CAN I WORK WITH?  Likewise, companies need to know that vendor/service support existsEMPLOYMENT BY INDUSTRYLIST OF TOP EMPLOYERS BY INDUSTRYRECENT OPENINGS/CLOSINGSCONTACT INFORMATION A New Generation in FDI Advisory ©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 18
  • 20. 4. ARE MY PEOPLE GOING TO WANT TO BE THERE  Quality of Life means different things to different people  Typically most important when:  Recruiting specialized talent  Relocating an existing staffHOUSING COST (BY TYPE)COST OF LIVING???? A New Generation in FDI Advisory ©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 19
  • 21. 5. HOW MUCH WILL IT COST?  All other tradeoffs will eventually be considered against financial gain/loss NOTE: Change profit on "Tax SUMMARY COMPARISON Assumed profit = $40 Million Costs" tab All $(000) Year 1 2 3 4 5 6 7 8 9 10 Total Costs Base Case $ 172,304 $ 73,322 $ 74,933 $ 76,581 $ 78,265 $ 79,986 $ 81,747 $ 83,546 $ 85,386 $ 87,266 Location A $ 194,618 $ 69,600 $ 71,196 $ 73,101 $ 74,966 $ 76,867 $ 83,337 $ 85,312 $ 87,325 $ 89,578 Location B $ 195,307 $ 76,175 $ 77,811 $ 79,483 $ 80,215 $ 82,921 $ 84,703 $ 86,524 $ 89,359 $ 91,260 Location C $ 191,467 $ 74,982 $ 76,648 $ 78,351 $ 80,092 $ 82,122 $ 83,941 $ 85,801 $ 87,702 $ 89,645 Location D $ 195,870 $ 79,489 $ 81,261 $ 83,072 $ 84,924 $ 87,068 $ 89,004 $ 90,983 $ 93,006 $ 95,074 Location E $ 188,565 $ 70,615 $ 72,214 $ 73,849 $ 75,519 $ 77,825 $ 79,569 $ 84,089 $ 85,910 $ 87,771 Location F $ 188,746 $ 72,745 $ 74,396 $ 76,084 $ 78,660 $ 80,425 $ 82,230 $ 84,076 $ 85,964 $ 87,894 Location G $ 195,770 $ 78,664 $ 80,344 $ 82,061 $ 83,816 $ 84,609 $ 86,441 $ 88,314 $ 90,228 $ 92,184 NPV % of Lowest Rank Base Case $ 702,604 100% 1 Location A $ 714,471 102% 3 Location B $ 744,822 106% 6 Location C $ 734,363 105% 5 Location D $ 771,847 110% 8 Location E $ 706,743 101% 2 Location F $ 718,964 102% 4 Location G $ 759,483 108% 7WAGE AND BENEFITS COSTS BY OCCUPATIONREAL ESTATE COSTSUTILITIES COSTS A New Generation in FDI Advisory ©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 20
  • 22. 6. CAN I OPERATE A…. (UTILITIES AND CAPACITY)  Draw, rate, and resiliency all may come into play depending on specific business needsELECTRIC, GAS, WATER, SEWER RATESTELECOMM CAPACITIESCAPACITY FIGURESNETWORK MAPS A New Generation in FDI Advisory ©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 21
  • 23. 7. MUNICIPAL FINANCES (AKA TAXES)  Typically play a somewhat smaller role, but some can be very important to some forms of business  Examples include inventory, telecomm, sales/use…TAX RATES (AND BASIS) BY TYPEEXPLANATION OF EXEMPT PROPERTY/ACTIVITIES A New Generation in FDI Advisory ©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 22
  • 24. 8. ARE THERE PROGRAMS TO HELP ME• Incentive: Any policy or program which endeavors to modify the behavior of companies making hiring or investment decisions (see also “Inducement”)• Automatic – Granted once thresholds are met• As-of-Right – Granted if applied for and thresholds are met• Discretionary – May be granted if applied for, but agency may decide for or against granting• Negotiable – Typically highly flexible and at the full discretion of the granting agency• Note: Typically does not include a community’s natural or economic advantages GRANT AND CREDIT PROGRAMS TRAINING PROGRAMS REBATE PROGRAMS FINANCING PROGRAMS A New Generation in FDI Advisory ©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 23
  • 25. BC INCENTIVE CATALOG• Scientific Research and Experimental Development (SR&ED) Investment Tax Credits (ITCs)• Incentives for Machinery and Equipment Investment• Film Production Tax Credits• Interactive Digital Media Tax Credit• Eligible Business Corporation and Venture Capital Corporation tax credits• International Business Activity Program• BC Hydro Powersmart / Power Tech ©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 24
  • 26. 9. IS THERE A PLACE FOR MY STUFF Real estate may or may not play a critical role in early stages Basic information on availability and cost is very useful More detailed “site finder” services can occasionally make a differenceAVERAGE RENTAL COST (BY AREA, BY TYPE)AVERAGE PURCHASE COST (BY AREA, BY TYPE)CONSTRUCTION COSTS A New Generation in FDI Advisory ©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 25
  • 27. 10. WHO IS GOING TO HELP ME When the time comes, there is NO substitute for a real person!THE NAME, DIRECT PHONE NUMBER, AND EMAIL ADDRESS OF A RESPONSIBLE PERSON A New Generation in FDI Advisory ©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 26
  • 28. THE COMMUNITY WEBSITE First opportunity (and occasionally only) to engage site selector, and independent companies MUST be easy to find, easy to navigate, and relatively complete Remember, it’s easier to drop a location option than to try to find data that isn’t there A New Generation in FDI Advisory ©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 27
  • 29. THE IEDC STANDARDHave you ever wondered what a site selection consultant looks for in determining what communities to recommend to their client? The answer is accurate information in a format that can provide an apples-to-apples comparison of communities. http://www.iedconline.org/?p=data_standards A New Generation in FDI Advisory ©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 28
  • 30. THE IEDC STANDARD Was developed through significant interplay with real site selectors on questionnaires from actual projects Some of the data is now available through standardized sources – leverage these Do not be daunted by the size – Even having the first five sheets done makes a difference! A New Generation in FDI Advisory©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 29
  • 31. THANK YOUChristopher SteeleChris.Steele@cwsgrp.comChris@ic-associates.comTelephone: 617-314-6527www.cwsgrp.comwww.ic-associates.com ©© 2012, CWS Consulting Group LLC 2012, CWS Consulting Group LLC 30

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