1. TAKING THE MYSTERY OUT OF CORPORATE SITE SELECTION Or Why
the Process Should be the Solution
2. Ponderable Quotes from Peter Drucker My greatest strength as
a consultant is to be ignorant and ask a few questions. Make sure
your back room is their front room. In other words, dont you do
guard services at your plant. Get someone who specializes in guard
services to do them for you. Get rid of in- house printing,
in-house conference services, any business that isnt at the core of
your focus.
3. THIS IS SERIOUS STUFF A wrong move can prove very costly A
substantial investment in time and money If you are going forward,
get professional help
4. BAD MOVE Question: Can a company do site selection on its
own? Answer: Yes, but probably not very well.
5. THIS IS A GOOD IDEA, RIGHT? Whats the justification? Cost
reduction? Consolidation? New product? Market penetration?
6. THERE ARE OPTIONS Expand/modernize existing facility Expand
locally Expand out of region Expand off-shore Move all operations
to new area
7. Oops After operating the newly constructed stainless steel
plant for only three years, ThyssenKrupp AG sold the facility, that
cost $5 billion to build, in late November 2013 to ArcelorMittal
and Nippon Steel and Sumitomo Metal Corp for $1.55 billion.
8. GIVE ME STRUCTURE Standing committee Special project team
Facility planning or real estate department Assigned operations
manager/senior executive
9. THE GOOD CONSULTANT Saves companies time and money Mitigates
risk Understands the many factors involved Keys on main drivers and
identifies pit- falls Negotiates an incentives package Serves as a
community liason
10. A Peek at a Real Project Prephase: Determining the wants
and needs of the company. Phase I: Location Analysis Phase 2:
Shortlist Analysis Phase 3: Finalist Analysis Phase 4: Selection of
Optimal Site
11. PRE-PHRASE: DETERMINING WANTS AND NEEDS Ask questions and
observe Then ask more questions Determine the difference between
wants and needs A Detective Strategy
12. Phase 1: Location Analysis Based on discussions with the
company, we identify regions for further consideration in the
following states: Arizona California Idaho Nevada New Mexico Oregon
Texas Utah
13. TO BE ANALYZED Labor Market 1. Labor Draw Area 2. Labor
Availability for key occupations 3. Labor Cost 4.
Vocational/Postsecondary training programs 5. Workers
Compensation/Unemployment Insurance rates Identification and review
of other large employers within candidate regions Business Climate,
including (right-to-work/union activity) Available Sites meeting
the Companys requirements State and Local Tax Burden
14. TO BE ANALYZED (CONTINUED) Environmental/Regulatory Burden
Estimate of Tax and Financial Incentives Transportation
Infrastructure 1. Interstate highway access 2. Proximity to
commercial airport Utilities availability and cost Others as
needed/identified
15. Phase 2: Shortlist Analysis Identify a shortlist of four to
six regions for further evaluation. Develop a Request for
Information (RFI) to be distributed to the lead economic
development organization within each of the shortlisted regions.
Prepare a Net Present Value (NPV) comparative operating cost
analysis for the four to six shortlisted Regions.
16. Phase 3: Finalist Analysis Select three or four finalist
regions for community/site visits. Coordinate all logistics:
Travel, lodging, ground transportation. Tour available
building/sites that meet the companys requirements Meet with
relevant stakeholders Further discuss incentives offers Upon
conclusion of visits, request real estate proposals and formal
incentives offers, and update the NPV analysis
17. Phase 4: Selection of Optimal Building/Site The Project
Team will present its updated analysis of finalist regions to the
company. Support the Company in its selection of the optimal
building and/or site. Support the Company to complete final real
estate and incentives negotiations. Work with economic development
organizations on timing and content of the project
announcement.
18. But Its Far From Over After the announcement, thats when
the heavy lifting begins as that is when a company needs help with:
Permitting Construction Financing/Banking Hiring and Workforce
Training Regulatory Compliance
19. WELL TAKE YOU THERE We help companies and communities. Well
take you where you need to be. Dean Barber Barber Business
Advisors, LLC Telephone: 972-767-9518 Email:
[email protected]