The document discusses how communities can prepare themselves to attract investment and jobs in an increasingly competitive economic development environment. It emphasizes the importance of having leadership, ready sites and infrastructure, strong workforce development programs, competitive tax structures, high quality of life amenities, and effective economic development organizations, marketing, and sales strategies. Being prepared in these areas helps communities stand out among competing locations and improves their chances of winning investment and job creation projects.

1. Prepared Communities Win
2012 Economic Summit
Norman Economic Development Commission
Norman, OK
Tuesday, April 3, 2012
Mark M. Sweeney

2. The Main Thing
Attracting Investment and Jobs is
More Competitive than Ever,
and …
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3. Being Prepared
Creates
Competitive Advantage
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4. Introduction to
McCallum Sweeney Consulting
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5. MSC Clients
SGL Automotive Carbon
Boy Scouts of America Fibers LLC joint venture
Kasle
Steel
American Titanium Works
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7. Understanding the Business of
Economic Development
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8. Business of Economic Development Overview
• Product Development • Organization
– Leadership – Vision & Strategic Plan
– Sites – Organization Design
– • Staffing / HR
Infrastructure
• Programs
– Human Resources
– Funding
• Education
• Training • Sales & Marketing
– Taxes – Market Segmentation
– QOL – Product Knowledge
– Community Assets – Customer Knowledge
– Communication
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9. Being Prepared – Product
Leadership
• Knowledgeable about economic development (trained!)
• Long-term vision and commitment
• Passion for your community
• Persuasive communicator
– Internal and external
• Be prepared – identify and develop community leaders
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10. Leadership
• Dollar General
Marion, IN
• Site and schedule driven
project
• Very competitive
(incentives)
• Mayor took lead
– Site issues (state and fed
agencies)
– Legislation
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11. Being Prepared – Product
Sites and Infrastructure
• Basic need for growing companies
• “Dirt Won’t Do”
– “Property” does NOT equal “Site”
• Location decision demands speed
– Site selection and facility start-up
• Be prepared – maintain a portfolio of ready, available sites
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12. Sites and Infrastructure
• Severcorr Steel
Columbus, MS
• Rural community
• Demanding site specs
• Community proactively
prepared
– Site certification
• $800 million
• 450 jobs
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13. Being Prepared – Product
Human Resources
• Education
– Recognize ties that bind economic development and education
together
• Training
– Critical component (start-up and on-going)
• Be prepared – show improvement in education and continue to
invest in training resources
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14. Human Resources
• Nissan Assembly
Canton, MS
• Large complex project
• Over 4,000 jobs
• Recruit, screen and
training was critical
– Upgrade Employ. offices
– On-site center
– High dollar value
– Train for turnover
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15. Being Prepared – Product
Taxes
• Major Site-Variable Factor
– Bottom line distinction among locations
– Balance need for services and revenue with impact on investment
decision
– Minimize as much as possible
• Be prepared – have creative tools in place to encourage
investment
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16. Tax and Incentives
• Nissan Warehouse
Greenville, SC
• Small project, 3rd party
building investor
• Limited “Nissan”
investment
– DNQ Fee-in-Lieu
• Creative solution
– Utilized two other
programs to create
similar value
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17. Being Prepared – Product
Community Assets
• Quality of community life is a factor in almost every project
• Critical for relocation of key personnel
• Becoming a fundamental factor with growing emphasis on
knowledge-worker opportunities
• Be prepared – never stop investing in the quality of life of your
community
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18. Community and Regionalism
• Trex Manufacturing
Olive Branch, MS
• Dynamic growth co.
• Concern re: south
• Comfort w “Memphis
Region”
• Concern w Small Town
– Rejected small finalist
during windshield tour
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19. Being Prepared - Organization
• Product Development • Organization
– Leadership – Vision & Strategic Plan
– Sites – Organization Design
– Infrastructure • Staffing / HR
– Human Resources • Programs
• Education
• Training • Sales & Marketing
– Market Segmentation
– Taxes
– Sales for Econ. Dev.
– Community Assets
– Customer Knowledge
– Phase II – Field / Community
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20. Organization Design
• Commit to the regional approach
– Aligns with decision making of investors
– Leverages scarce resources
• Commit to staff development
– Adequate staff / professional development
• Align organization with strategy!
• Be prepared – design, direct, and invest in your organization
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21. Funding
• Funding
– Secure
– Reliable
– Adequate
– Long term
– Broad participation / broadly supported
– Flexible and discretionary
• Avoid too much “earmarking”
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22. Being Prepared – Sales and Marketing
• Product Development • Organization
– Leadership – Vision & Strategic Plan
– Sites – Organization Design
– Infrastructure • Staffing / HR
– Human Resources • Programs
• Education
• Training • Sales & Marketing
– Taxes
– Market Segmentation
– Community Assets
– Sales for Econ. Dev.
– Customer Knowledge
– Phase II – Field /
Community
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23. Market Segmentation
• Market segmentation
– Dividing total market into segments that share common properties
– Segments will vary in attractiveness to your organization
– Product development strategies will differ for each segment
– Marketing and communication strategies will differ for each
segment
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24. Market Segmentation
• Investment and Jobs from Outside
– Recruitment
• Addtional Investment and Jobs from Inside
– Expansion / retention
• New Investment and Jobs from Inside
– Entrepreneurial development
• Be prepared – position for all segments
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25. Sales for Economic Development
• Product knowledge
- Know your community
- Strengths and weaknesses
• Customer knowledge
- Know your customer (industry, company)
- Opportunities and threats
• Sales skills
- Communication skills (listening!)
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26. Customer Knowledge: Fundamental Characteristics
• Profit driven
– Investment for purpose of return
• Deadline driven
– Both the site selection and the project
• Competitive
– Multiple location options
• Comprehensive
– Complex decision involving most functional areas
• Risk averse
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27. Competitive Site Selection Screening Process
Define Search Region
- Center-of-Market Analysis
Regional Screening based
on Project Criteria
RFP & Proposal Screening
Property Visits / Comparative
Assessment
Negotiations / Financial Modeling
Risk Analysis
Location Selection
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28. Comprehensive Analysis
q
Work Ethic/Labor Climate Assessments
q
Competitive Wage Surveys
q
Strategic Planning - Growth/Location q
Productivity Assessments
q
Center of Market Analyses q
Qualitative Evaluations
q
Regional Definition q
Training Resources
q
Competition Analysis q
Demographic Survey
q
Legal Environment
q
Pro-Forma Analysis
q
Breakeven Analysis
q
Recurring and Nonrecurring q
Product Distribution Evaluation
Cost Comparisons q
Raw Material Identification
q
Optimization Studies q
Comparative Transportation
q
Sensitivity Analysis Cost Analysis
q
Project Financing q
Multi-Model Scenario Studies
q
Alternatives
q
Risk Analysis
q
Topographic Surveys
q
Environmental Conditions
q
Real Estate Negotiations
q
Boundary Surveys
q
Incentive Negotiations
q
Zoning Status/Modification
q
Site Acquisition
q
Access and Site Planning
q
Purchase Options
q
Permitting
q
Infrastructure Suitability q
Livability, Quality of Life Assessment
q
Project Scheduling Sensitivity q
Factor Weighting and Ranking
q
Support Services Assessment q
Market Assessment
q
Expandability/Flexibility Determinations q
Engineering/Construction/Cost Comparisons
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29. Site Selection Process
Planning Phase Phase I Phase 2 Phase 3 Phase 4
• Conception • Alignment/ • Community Visits • Negotiations • Prepare MOU
• Feasibility Criteria • Property • Evaluation • Real estate
• Investment • Regional Analysis Evaluation • Site Due Diligence transaction
Decision • Areas of Interest • Physical Factors • Location • Public
• Request for • Operating Announcement
Selection
Proposal and/or Factors • Incentive Capture
• Living Factor
web research Support
• Candidate • Comparative
Locations Analysis
• Finalist Locations
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30. Phase II – Field Competition
• Physical Conditions
– Sites, infrastructure
• Operating Conditions
– Labor, education/training, utilities, taxes
• Living Conditions (QOL)
– Housing, medical, education, leadership
– Appearance, congestion, culture & rec.
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31. Phase II – Community Visits
• Industry and Community Leaders
– Existing industry and businesses
• Private interviews
• Most important source of information
– Community leaders
• Elected and private leaders
• Represent community and government
• Subject to “managed access” to prospect
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32. Site Selection Process – Phase III
• Incentives / Real Estate • Public announcement
Negotiations (MSC and Client team)
(MSC and Client team) – Align company and community
– Property objectives
– Site preparation – Press releases, events, etc.
– Infrastructure
– Utilities
• Incentive capture support
– Transportation
– Training
(MSC)
– Taxes – On an as-needed basis
– Permitting
– Low cost financing
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33. Communication
• Public Relations
– Establishing overall image in marketplace
– Long-term effort
– Important given advanced stage of decision making before
you are contacted
• Advertising
– Image building
– Specific targets
• Events
– Trade shows, prospect visits
– “FAM” events
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34. Communication
• Face to Face
– Get prospects to your place
– You go to prospect’s place
• Print Media
– Still viable medium with place in overall communication strategy
• Trade publications
• Target industry publications
• General business publications
• Web
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35. Comments on Rural Economic
Development
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36. Rural Economic Development
• Competitive Environment
– Competing with other rural and probably non-rural locations
• Risk Perspective
– Site selection is a risk mitigation effort
– Rural locations present greater risk
– Key location attribute is diversity
• Diversity of choices
• Especially true with quality of life issues
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37. Rural Economic Development
• Risk Perspective
– Rural locations present greater risk
• Real estate
• Labor availability
• Labor quality
• Recruit and retain concerns
• Sustainable / growth capacity of infrastructure
• Quality of life issues
 Housing, education, medical
 Commercial assets, hotel/meeting space
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38. Rural Economic Development
• Compete!
– Sites
– Infrastructure (planning)
– Labor information / success stories
– Charm as an economic development asset
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39. MSC Contact Information
Mark M. Sweeney
Senior Principal
msweeney@mccallumsweeney.com
McCallum Sweeney Consulting
550 South Main Street, Suite 550
Greenville, SC 29601
864-672-1600 (main)
864-672-1610 (fax)
www.mccallumsweeney.com
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