The Boyd Company, Inc Pooler report

8/20/2019 The Boyd Company, Inc Pooler report

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Princeton, NJPrepared by: The Boyd Company, Inc.

Bohemian Hotel Savannah Summary August 6, 2015

Pooler Named Top Small Market City in the Eastfor High Advanced Manufacturing

COST OF ADVANCED MANUFACTURING INPOOLER DETAILED IN NEW BOYD STUDY

A recently completed site selection study compares the cost of operating an advanced

manufacturing plant in a series of 40 top small market cities in the U.S ., including

Pooler, GA. The study was conducted by The Boyd Company, Inc., Location

Consultants of Princeton, NJ. The report focused on up-and- coming small market cities

increasingly on the firm’s radar screen for new industry.

Annual operating costs in the Boyd study were projected solely for comparative

purposes, with only major geographically-variable factors being considered. Those

costs not varying significantly with geography, including relocation and start-upexpenses, were not considered. The independent Boyd analysis focuses on those key

cost elements most pivotal within the corporate site selection process, including labor,

real estate, power, taxes and others. Overall costs in the analysis were scaled to a

hypothetical 225,000 sq. ft. plant employing 325 workers.

Annual operating costs in the study range from a high of $29.8 million in Mountain View,

CA, to a low of $20.0 million in Santa Teresa, NM. Costs in Pooler total $21.2 million

per year, 8th lowest among the 40 surveyed cities.


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metalworking, engineered plastics, composites, energy, aerospace, med tech and other

advanced manufacturing fields. These are sectors that increasingly integrate new

innovative technologies in both products and processes. The rate of technology

adoption and the ability to use that technology to remain competitive and add value are

defining measures of the advanced manufacturing sector.

Reshoring Trends

Today, American manufacturing is making a strong comeback. Thanks to cheap and

abundant energy supplies in the U.S., productive U.S. workers and demands for higher

wages in developing markets, more businesses are choosing to produce here in the

States. Both manufacturing employment and industrial production have grown steadily

over the past 18 months. Even major global manufacturers headquartered in Korea and

China are locating operations in the U.S. As these manufacturing jobs wash back on

U.S. shores, Boyd sees a trend to smaller, less costly and more manageable cities.

Presented in the following table is a cost ranking of Boyd’s Top 40 small market

advanced manufacturing locations.


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TOTAL GEOGRAPHICALLY-VARIABLEOPERATING COST RANKING

LocationTotal Annual

Operating Costs

Mountain View, CA $29,891,687West Kingston, RI $26,894,767

Marlborough, MA $26,863,880

Folsom, CA $26,610,767

Poway, CA $26,211,729

Apple Valley, CA $26,026,226

Redlands, CA $25,916,968Yuba City, CA $25,875,338

Chaska, MN $25,435,390

Sterling, VA $25,143,950

Littleton, CO $24,868,347

York, PA $24,069,311

Dublin, OH $23,860,421Liberty, MO $23,788,766

Tualatin, OR $23,758,770

Cecil Township, PA $23,237,984

Ankeny, IA $23,042,866

Gardnerville, NV $23,042,592

Plattsburgh, NY $22,647,408

Pleasant Prairie, WI $22,628,863

Greer, SC $22,426,102

Hutto, TX $22,424,744

Green Cove Springs, FL $22,395,202

C t OK $22 364 297


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Smyrna, TN $22,009,420

Alachua, FL $21,907,450

Casa Grande, AZ $21,727,162

Georgetown, KY $21,641,306

Mebane, NC $21,537,136

Pooler, GA $21,199,964

Monroe, LA $20,890,773

Parsons, KS $20,870,630

Cordele, GA $20,717,814 Albertville, AL $20,262,701

Starkville, MS $20,141,369

Lynn Haven, FL $20,076,877

Santa Teresa, NM $20,045,388

About Boyd

The Boyd Company, Inc., of Princeton, NJ, provides independent location

recommendations to leading U.S. and overseas corporations. Founded in 1975, Boyd

clients in the advanced manufacturing sector include the likes of Pratt & Whitney;

Philips; Dell, Altera; Hewlett-Packard and others.

Costs: The White Hot Issue in Corporate Boardrooms

In today’s uncertain economy, comparative economics are still overriding considerations

in the relocation process, both for domestic as well reshoring projects. For manycompanies, improving the bottom line on the cost side of the ledger is far easier than on

the revenue side. Comparative costs the white hot issue in today’s corporate

boardrooms. As a result, location decisions at every level of the corporate

i ti l t t f ff h d ll t d t b h l t i ht


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Cost differentials between an acceptable city and an optimum plant site can be very

substantial even within a given U.S. region. Itemized annual operating costs for Pooler

and other surveyed advanced manufacturing sites are detailed in the following table.


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The Boyd Company, Inc. Lo ca ti on Co ns ul ta nt s

Princeton, NJ

6

What it Costs to Operate a High Tech Mfg. Plant in Pooler:

Gardne rvi ll e Moun tain View L ittl eton Casa Grande Lafayette Pooler

NV CA CO AZ IN GA

Nonexempt Labor (2)

Weighted Average Hourly Earnings $21.64 $25.89 $22.23 $19.53 $19.71 $19.64

Annual Base Payroll Costs $13,390,832 $16,020,732 $13,755,924 $12,085,164 $12,196,548 $12,153,232

Fringe Benefits $4,954,608 $5,927,671 $5,089,692 $4,471,511 $4,512,723 $4,496,696

Total Annual Labor Costs $18,345,440 $21,948,403 $18,845,616 $16,556,675 $16,709,271 $16,649,928

Electric Power Costs (3) $613,944 $958,368 $568,476 $581,892 $578,820 $624,792

Natural Gas Power Costs (4) $797,400 $671,400 $778,500 $673,200 $675,000 $496,800

Amortization Costs (5) $2,253,481 $4,730,713 $2,673,569 $2,262,427 $2,336,983 $2,198,836

Property and Sales Tax Costs (6) $957,027 $1,488,267 $1,904,686 $1,579,168 $1,627,111 $1,154,908

Travel Costs (7) $75,300 $94,536 $97,500 $73,800 $83,400 $74,700

Total Annual Geographically-Variable Operating Costs $23,042,592 $29,891,687 $24,868,347 $21,727,162 $22,010,585 $21,199,964

NOTES:

(1) Includes all major geographically-variable operating costs.

Source: The Boyd Company, Inc., Princeton, NJ

Top Ranked

Western City

Top Ranked

Central City

Top Ranked

Eastern City


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TOP-RANKED SMALL CITIES BY REGION


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TOP-RANKED SMALL CITIES BY REGION

Pooler, GA: Best in the EastWith a population, 19,350, Pooler’s superior

infrastructure and logistics distinguish it as a top

small market city for advanced manufacturing.

In 2014, Georgia was recognized by Site

Selection Magazine as having the top-ranked

state business climate in the country. Georgia’s

highly regarded Quick Start labor training

program has become a model for many other states actively courting advanced

manufacturing operations. JCB, a world leader in backhoe loader and telescopichandler manufacturing, is one of several manufacturers with plants in Pooler.

The Port of Savannah, located within a short drive of Pooler, is the fastest-growing and

fourth-largest port in the nation. Market access shows well for advanced manufacturers

in Pooler as more than 80 percent of the U.S. population is reachable within a two-day

drive by ground, water or air.

Tybee Island, also known as Savannah Beach, is an

easily accessible barrier island located just 20 miles

away from Pooler and popular Hilton Head, SC, is about

an hour’s drive north. Historic Savannah is anestablished and popular tourist destination known

worldwide.


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Industrially-zoned land around the intersection of Interstate 95 and Pooler Parkway just

west of Savannah is some of the hottest real estate markets in the Southeast. Pooler is

now one of Georgia's fastest-growing cities.

Lafayette, IN: Best in the Central

With a population of 67,140, Lafayette is

already home to advanced manufacturers

Caterpillar, Subaru, Wabash National and

other top industries--some locally based,

others based off-shore.

Amazing things happen in places where the education and business communities joinforces. The global economy has been propelled by areas like Silicon Valley, where

radically new concepts are transformed into practical everyday uses.

That’s what you’ll find in Indiana’s Technology Corridor. Centered upon the advanced

technology being created in labs at Purdue University and Indiana University, powered

by highly skilled training from Ivy Tech Community College, and inspired by a long

tradition of individual initiative, this region is shaping the nation’s future.

The combination of leading-edge research, well-educated residents, business-friendly

officials, and a friendly commercial community makes Indiana’s Technology Corridor the

natural choice for companies interested in moving their industries ahead.


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Owing to the research resources of neighboring

Purdue University in West Lafayette, including

the famed Purdue Research Park, an ideal

environment for advanced manufacturing

companies exists in the community. Led by the

efforts of former governor Mitch Daniels (now

president of Purdue University), Indiana is now a

right-to-work state and offers a number of incentive programs targeting the attraction of

new advanced manufacturing operations to the state.

Advanced manufacturing in Lafayette is also fostered by a strong employer-focused

training program offered through local Ivy Tech Community College. Through Ivy Tech’s

Advancing Manufacturing program, full scholarships are available for its CertifiedProduction Technician Program.

Gardnerville, NV: Best in the West

Gardnerville is the elder of two sibling towns

(Gardnerville and Minden) located in the

southern portion of the Reno/Sparks/Lake

Tahoe metro area within Nevada’s scenic

Carson Valley, one of the earliest settled

regions of the state. Gardnerville’s population

of approximately 6,000 since is expected to

spike dramatically over the next several years

given the recent decision by electric carmaker Tesla Motors to locate its mammoth $5

billion “gigafactory” in the Reno area. The historic 10 million sq. ft. battery storage plant


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Boyd consistently ranks Nevada’s as one of the top 10 most business-friendly states

with superior tax advantages such as:

No corporate income tax

No personal income tax

No inventory tax

No franchise tax

No unitary tax

No special intangible tax

Logistics, labor training and market access all show well for Gardnerville. Advanced

manufacturers enjoy close-in access to the huge California consumer and industrial

markets and one and two-day truckload service to all major cities in the 11 Western

States, including Seattle, Denver, Phoenix and Salt Lake City. STEM (Science,

Technology, Engineering and Math) training programs are expanding at the nearby

Douglas Campus of Western Nevada College in Minden.

Nevada’s governor Brian Sandoval has implemented a strategic development plan

aimed at diversifying Nevada’s economy, including fostering the growth of advanced

manufacturing in the state. The 2014 announcement by Tesla is the capstone of this

diversification plan which is expected to have a wide-ranging impact on future business

growth in Gardnerville. Current manufacturing activity in the Gardnerville area is led by

General Electric’s Measurement and Control Division and Starbucks’ West Coast

production plant.


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Attracting top technical and management talent

from high cost, high tax California is enhanced by

the lifestyle attractions and lower cost of living

associated with the Gardnerville area.

Nearby Lake Tahoe is home to world-class ski

resorts, beautiful sandy beaches and the region’s newest hotel casino resort. The

rugged and picturesque elevations of the nearby Sierra Nevada provide hikers andbikers of all ability levels countless trails to explore.


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SUMMARY COST EXHIBITS FOR ALL

TOP SMALL MARKET CITIES


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Princeton, NJ

14

Alber tv ille Casa Grande Apple Valley Folsom Mountain View Poway Redlands Yuba Cit y

AL AZ CA CA CA CA CA CA

Nonexempt Labor

Weighted Average Hourly Earnings $18.85 $19.53 $23.62 $24.07 $25.89 $23.62 $23.43 $23.38

Annual Base Payroll Costs $11,664,380 $12,085,164 $14,616,056 $14,894,516 $16,020,732 $14,616,056 $14,498,484 $14,467,544

Fringe Benefits $4,315,821 $4,471,511 $5,407,941 $5,510,971 $5,927,671 $5,407,941 $5,364,439 $5,352,991

Total Annual Labor Costs $15,980,201 $16,556,675 $20,023,997 $20,405,487 $21,948,403 $20,023,997 $19,862,923 $19,820,535

Electric Power Costs $624,780 $581,892 $837,888 $814,613 $958,368 $974,652 $837,888 $958,368

Natural Gas Power Costs $422,100 $673,200 $671,400 $671,400 $671,400 $671,400 $671,400 $671,400

Amortization Costs $2,072,929 $2,262,427 $3,105,674 $3,328,195 $4,730,713 $3,210,107 $3,148,438 $3,094,855

Property and Sales Tax Costs $1,090,391 $1,579,168 $1,302,286 $1,304,072 $1,488,267 $1,240,673 $1,311,824 $1,245,934

Travel Costs $72,300 $73,800 $84,981 $87,000 $94,536 $90,900 $84,495 $84,246

Total Annual Geographically-Variable

Operating Costs $20,262,701 $21,727,162 $26,026,226 $26,610,767 $29,891,687 $26,211,729 $25,916,968 $25,875,338

NOTES:

(1) Includes all major geographically-variable operating costs for a 225,000 sq.ft. advanced manufacturing plant employing 325 workers.


COMPARATIVE ANNUAL OPERATING COST SIMULATION SUMMARY(1)


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The Boyd Company, Inc. Lo ca ti on Co ns ul ta nt sPrinceton, NJ

15

Lit tlet on Alachua Gr een Cov e Spr ings Ly nn Haven Cor dele Pooler Ankeny Laf ayet te

CO FL FL FL GA GA IA IN

Nonexempt Labor



Fringe Benefits $5,089,692 $4,581,410 $4,711,914 $4,148,683 $4,368,480 $4,496,696 $4,830,972 $4,512,723





Property and Sales Tax Costs $1,904,686 $1,179,071 $1,156,378 $1,018,468 $1,160,527 $1,154,908 $1,726,630 $1,627,111

Travel Costs $97,500 $81,300 $79,200 $72,900 $73,200 $74,700 $80,700 $83,400


Operating Costs $24,868,347 $21,907,450 $22,395,202 $20,076,877 $20,717,814 $21,199,964 $23,042,866 $22,010,585

NOTES: (1) Includes all major geographically-variable operating costs for a 225,000 sq.ft. advanced manufacturing plant employing 325 workers.




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Princeton, NJ

16

Parsons Georgetown Monroe Marlborough Holland Chaska Liberty Starkville

KS KY LA MA MI MN MO MS

Nonexempt Labor



Fringe Benefits $4,290,635 $4,741,679 $4,450,905 $5,314,069 $4,647,807 $5,272,857 $4,961,477 $4,295,215


Electric Power Costs $484,452 $415,308 $501,096 $1,186,032 $635,580 $530,724 $477,096 $558,372



Property and Sales Tax Costs $1,761,195 $836,256 $1,374,785 $2,286,969 $1,068,714 $2,089,438 $1,554,979 $1,059,710

Travel Costs $72,000 $74,100 $68,865 $109,500 $90,000 $95,100 $84,600 $72,900


Operating Costs $20,870,630 $21,641,306 $20,890,773 $26,863,880 $22,089,656 $25,435,390 $23,788,766 $20,141,369





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Princeton, NJ

17

Kannapolis Mebane Santa Teresa Gardnerville Plattsburgh Dublin Catoosa Tualatin

NC NC NM NV NY OH OK OR

Nonexempt Labor



Fringe Benefits $4,851,578 $4,627,201 $4,237,976 $4,954,608 $4,695,888 $4,950,029 $4,794,339 $5,199,591



Natural Gas Power Costs $666,000 $666,000 $562,500 $797,400 $617,400 $1,014,300 $909,900 $579,600


Property and Sales Tax Costs $963,581 $997,283 $923,666 $957,027 $1,538,321 $1,267,150 $1,182,547 $459,808

Travel Costs $76,500 $79,800 $77,700 $75,300 $81,000 $85,800 $74,700 $95,100


Operating Costs $22,343,073 $21,537,136 $20,045,388 $23,042,592 $22,647,408 $23,860,421 $22,364,297 $23,758,770





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Princeton, NJ

18

Cecil Township York West Kingston Greer Smyrna Hutto St erling Pleasant Prairie

PA PA RI SC TN TX VA WI

Nonexempt Labor



Fringe Benefits $4,846,999 $5,073,665 $5,403,362 $4,876,763 $4,757,706 $4,851,578 $5,563,631 $4,769,153


Electric Power Costs $609,648 $745,452 $1,891,500 $493,032 $522,084 $455,304 $426,888 $647,616



Property and Sales Tax Costs $1,355,079 $1,289,287 $1,842,342 $1,240,228 $1,039,236 $1,402,474 $937,560 $1,187,625

Travel Costs $86,400 $79,500 $84,900 $90,300 $76,200 $90,900 $111,000 $83,700


Operating Costs $23,237,984 $24,069,311 $26,894,767 $22,426,102 $22,009,420 $22,424,744 $25,143,950 $22,628,863





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Princeton, NJ

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