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Gain site selection process v2 (1)


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How companies make decisions of where to locate new facilities

Published in: Business, Real Estate
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Gain site selection process v2 (1)

  1. 1. ©2013GAINTARGETED BUSINESS ATTRACTIONThe Site Selection Process
  2. 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. 3. ©2013GAINPhase 1 – Project PlanningPhase 2 – Community ScreeningPhase 3 – Site VisitsPhase 4 – Final Assessment
  4. 4. ©2013GAIN⠕ Company Needs Are Aligned with Business Goals⠕ Needs Drive The Parameters of the Location Search⠕ Needs Determine Which Communities Are Chosen.
  5. 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. 6. ©2013GAINTypicalPreliminary Pool93%Pool after 1st Cut6%Finalists1%THREE STAGES OF THE TYPICAL SITE SELECTION PROCESS
  7. 7. ©2013GAINCorporate CEO5%Corporate CFO35%Corporate COO25%Outside RealEstate Brokers10%Site Selectors25%65% OF ALL SEARCHES ARE CONDUCTED BY CORPORATEEXECUTIVES
  8. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 18. ©2013GAIN⠕ Prospect Review and Assessment of:⠕ Incentives⠕ Real Estate⠕ Overall Community⠕ Review of Final Rankings⠕ Notification of final location
  19. 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