CWS Business Attraction For EDAC


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CWS Business Attraction For EDAC

  1. 1. Investor Targeting Bringing Your Strengths to the Location Selection Game EDAC/EDABC 2009 CONFERENCE September 22, 2009
  2. 2. CURRE EVENTS The Reality of Now ENT The current downturn is not a crisis per se, but instead  represents the growing pains of a truly global economy S • Corporate, MNC strategic  realities Innovation Cycle • Changing sector base • The role of policy in shaping the  future • Opportunities for proactive  planning and targeting What can this mean for  you? © 2009, CWS Consulting Group LLC
  3. 3. ISSUES OF ADJUST The New Normal • Maintaining identity in the  g y TMENT face of Global convergence • Embracing shift in trends  rather than onslaught of  “crisis” • Transitioning to competing Transitioning to competing  in a tougher, global market • Requires new and different  q paradigms for true success.  © 2009, CWS Consulting Group LLC
  4. 4. AGENDA Location Strategies and Investor Targeting • The Location Strategy (Site Selection) Process • Investor Targeting – A Proactive Approach • New Priorities in Location Strategy • Innovation • Energy • Protectionism © 2009, CWS Consulting Group LLC
  6. 6. INTRO What is Site Selection? ODUCTION T LOCATION STRATEGY Are we selecting a site,…. TO ….Or a home for a business E How Do Companies (or Consultants)  Make Location Decisions? M k L ti D i i ? © 2009, CWS Consulting Group LLC
  7. 7. LOCAT STRAT What is Site Selection? The following business situations can trigger a need for a new  The follo ing b siness sit ations can trigger a need for a ne TION site: • Real Estate event (Lease Termination) Real Estate event (Lease Termination) TEGY TRIGGERS • Expansion  • Market Entryy • Mergers, and Acquisitions • Consolidation • Realignment  • Business Process Change • Market Change • Cost Reduction © 2009, CWS Consulting Group LLC
  8. 8. LOCAT PRIOR What are Companies Looking For? TION Labor Skills, Talent • All play some role • Specific importance  Labor and Operating Costs p g depends on the use d d th RITIES Partners, Customers and Vendors Transportation and Access Utilities and Other Infrastructure Real Estate and Facilities Business Environment, Taxation, and Incentives Quality of Life © 2009, CWS Consulting Group LLC
  9. 9. WHAT AND WH ?: SCOPE AND TEA Who Makes the Call? Location Decisions range from simple real estate searches up through  L ti D i i f i l l t t h th h T complete strategic reconfigurations  HO Internal I l External E l • Chief Executive Officer • Real Estate Service Provider  • Chief Operating Officer (Broker) • Management Consultant Management Consultant E • Chief Financial Officer h f l ff • Director of Corporate Real Estate • Location Consultant • Director of Human Resources • Engineers, Architects, and  Planners AM • Business Unit Leaders • Legal, Tax, Public Relations © 2009, CWS Consulting Group LLC
  10. 10. THE EVALUATION PROCESS A Business‐Based Process E The Location Process allows companies to define their business needs and  then narrow the list  The Location Process allo s companies to define their b siness needs and then narro the list of candidates based upon best‐fit.  A business‐based methodology matches companies to  locations that will meet their needs for the long‐term.   Field Analysis Final Location  Final Location S Selection and  Business  Location  Incentives  Needs  Screening Negotiations Assessment Financial  Modeling Executed  Solution NOTE:  Community probably not aware of project until Field Analysis! NOTE C it b bl t f j t til Fi ld A l i ! © 2009, CWS Consulting Group LLC
  11. 11. BUSIN NEEDS ASSESSM Understanding the Core Drivers NESS First: Understand and define the need(s) Fi t U d t d d d fi th d( ) • Catalog of operations at each location in the current configuration • Proximity to key partners or clients (internal and external) P i it t k t li t (i t l d t l) S • Key labor requirements and recruitability • Facility requirements MENT • Competitive factors • Market factors Location • Regulatory concerns Regulatory concerns Goals • Infrastructure requirements • Business continuity factors • Transitional or implementation requirements T iti l i l t ti i t • Real or perceived barriers to change • Govt’ assistance required (or issues to be avoided) • Other key location criteria © 2009, CWS Consulting Group LLC
  12. 12. THE EVALUATION PROCESS Front‐Loading the Process E Challenge:  How can Communities enter the process earlier,  and stay in the running longer?   S Field Analysis Final Location  Selection and  Business  Location  Incentives  Needs  Needs Screening Negotiations Assessment Financial  Modeling Executed  Solution S l i © 2009, CWS Consulting Group LLC
  14. 14. INVESTMENT AT Being a Good Host How do we match  How do we match TTRACTION STRATEGY community strengths and  goals to the needs of  business? b i ? Y © 2009, CWS Consulting Group LLC
  15. 15. INVESTMENT AT Reverse Engineering Understand the link between community attributes and business needs Investment  Market Analysis Industry Targeting Final Investment  TTRACTION STRATEGY Strategy  Attraction Plan Assessment • Collect published  • Determine existing  • Complete  and proprietary data  • Determine investor   industry base remediation plan as  on key criteria goals and resources • Understand key  required • Construct weighting  • Determine key  dynamics for  • Develop incentive Develop incentive  and ranking model  and ranking model stakeholders selected industries plan if required to test development  • Catalog site  • Examine availability  • Develop key  candidates under  characteristics of key inputs marketing targets and  prime and  • Determine market  • Look for key vendors  customized message  alternative scenarios and catalog regional  and partners and tactics for each • Combine screening  g attributes tt ib t • Determine existing Determine existing  Y results with CWS  • Develop deal  • Examine existing  reality and  structure(s) Consulting Group  regional and local  perception of  experience to  economic base benefits and  understand market  • Establish initial  obstacles in the site  dynamics strategic parameters strategic parameters and region g • Id if i i i l Identify initial target  industry candidates Investment  Attraction Plan © 2009, CWS Consulting Group LLC
  16. 16. INVESTMENT STRATEGY AS Location Planning for Business Investment Market Industry Final Investment  Strategy  Analysis Targeting Attraction Plan Assessment Investment  Attraction Plan First: Understand and define Goals and Resources • What does the community want to achieve?  What are it’s development  goals SSESSMENT • Which community groups and resources will participate in investor  attraction? • Wh t What resources can the community or region bring to bear on the  th it i bi t b th T process? • How will the plan be implemented?  How will it be made sustainable? © 2009, CWS Consulting Group LLC
  17. 17. MARK ANALYS Screening – Determining Relative Advantages KET Investment Market Industry Final Investment  Strategy  Analysis Targeting Attraction Plan Assessment General Demographics and Labor Force Dynamics Investment  Attraction Plan Economic Base and Regional Partners Economic Base and Regional Partners SIS • An honest, objective and  Availability of Skills and Talent complete assessment of the  community’s strengths,  Education Resources weaknesses, and goals • Provides the assessment of  Transportation and Logistics ingredients in the cupboard • Identifies area for competitive  f f Utility and Infrastructure Advantages improvement Overall Cost Base Real Estate Availability, Suitability and Cost Business Environment, Taxation, and Incentives Quality of Life © 2009, CWS Consulting Group LLC
  18. 18. INDUS AND USE SELECT Identifying the Likely Suspects STRY Investment Market Industry Final Investment  Strategy  Analysis Targeting Attraction Plan Assessment Investment  Attraction Plan U What is the match between Community and Target Investors? • What is the existing regional base for the industry, and what are the dynamics g p pp g • What are the greatest pressures and opportunities facing the industry y TION • What typically forces changes in any of these companies’ real estate and asset  strategies • Which industry players are either facing now or will be facing a key decision  threshold in the near future • What are the roadblocks keeping these companies from changing to meet new  business demands © 2009, CWS Consulting Group LLC
  19. 19. INVESTMENT AT Bringing the Story to the Potential Investor Investment Market Industry Final Investment  Strategy  Analysis Targeting Attraction Plan Assessment Investment  First: Build competitive advantage Attraction Plan TTRACTION PLAN • Develop partnerships between public agencies and private companies • Build training programs for specific skills or a particular labor class • Install key infrastructure Install key infrastructure • Provide environmental remediation for key properties • Address legal, permitting and regulatory challenges at the site level • Address tax, permitting, and regulatory issues at a community or regional level  Address tax permitting and regulatory issues at a community or regional level • Provide funds for base financing • Develop tailored deal structures to meet the needs of specific users and  investors Second:  Spread the word © 2009, CWS Consulting Group LLC
  20. 20. BEST PRACTICES Community First Steps • Understand Your Community • Organize and Prepare S • Engage the Current Corporate Base • Build Regional Strength • Build Relationships Between Government, Business, Education,  and Economic Development • D l Develop a Coherent External Image Supporting Economic  C h tE t lI S ti E i Development • Actively Reach Out Actively Reach Out • Be Creative © 2009, CWS Consulting Group LLC
  22. 22. INNOV The Global Innovation Chain VATION Innovation, not Cost • Manage the stream and flow of  knowledge and research  k l d d h • Bring new products to new  markets • What is your position in that flow  of development? • Strategic, multi‐focused  approach • Interfacing Clusters = Mutual  Innovation  • Develops sub‐sectors for support  or spin‐off • Adding value to industry location Adding value to industry, location  and economy at large © 2009, CWS Consulting Group LLC
  23. 23. INNOV Using Innovation to your Advantage VATION • How do Innovation Cycles work? • Wh i What is your regional innovation  i li i cycle? • Avoid innovation “trends” versus  true “cycles” • Use these as unfolding points of  contribution for economic  contribution for economic development (targeted  investment) • Build on this for business Build on this for business  attraction/Development © 2009, CWS Consulting Group LLC
  24. 24. ENERG The Coming Fuel Crunch GY Relative Increase in Fuel Costs (Indexed to 1996) ? SOURCES:  Energy Information Administration, Bureau of Labor Statistics © 2009, CWS Consulting Group LLC
  25. 25. ENERG AND SUPPLY CHAIN Implication for Business Location? GY I Source: LogicNet Users Symposium 2009, David Simchi Levi © 2009, CWS Consulting Group LLC
  26. 26. NATIO Buy America ONAL PROT • Original language stated that all  “manufactured goods” bought by taxpayers  for the stimulus be produced domestically TECTIONISM • CAFTA and NAFTA impact • In fact, more than 50 nations are covered by  trade treaties with the US and may be exempt  trade treaties with the US and may be exempt M from restrictions. • By the way, when was the Buy American Act By the way, when was the Buy American Act  first tried?  1933. HOWEVER  HOWEVER ‐ • Border state governments have attempted to put some restrictions in place for  public works spending • Impact appears largely restricted to larger public projects p pp g y g p p j FULL IMPACT NOT YET KNOWN  © 2009, CWS Consulting Group LLC
  27. 27. BEST PRACTICES (REVISITED) Community First Steps • Understand Your Community • Organize and Prepare S • Engage the Current Corporate Base • Build Regional Strength • Build Relationships Between Government, Business, Education,  and Economic Development • D l Develop a Coherent External Image Supporting Economic  C h tE t lI S ti E i Development • Actively Reach Out Actively Reach Out • Be Creative © 2009, CWS Consulting Group LLC
  28. 28. GETTING AHEAD OF THE BUSINESS ATTRACTION CURVE How do we excel in Attracting Investment in the “New Normal”? • Need to be nimble • Need to innovate D • Need to think globally N d t thi k l b ll • Need to partner B A N “Rules are for the interpretation of wise men and the obedience of fools.” – Colin Chapman © 2009, CWS Consulting Group LLC
  29. 29. Chris Steele Phone: (617) 314-6527 Email: THANK YOU VERY MUCH