A Sta te on F ire : How Corpora te Site Se le c tion in T e xa - - PowerPoint PPT Presentation

A Sta te on F ire : How Corpora te Site Se le c tion in T e xa s is L ike the Hung e r Ga me s Gre a te r Da lla s Pla nning Counc il April 30, 2015 Ron Sta rne r E VP Conwa y, Inc .

Co nwa y PR & Ma rke ting (fo rme rly Ne w Yo rk-b a se d T

he PONT Gr

• up) spe c ia lize s in

c o mmunic a tio ns a nd ma rke ting fo r e c o no mic de ve lo pme nt a g e nc ie s. Co nwa y Adviso ry (fo rme rly Be rlin-b ase d T

e r r ain Global), is a le a ding c o nsulting firm fo c use d

e xc lusive ly o n fo re ig n dire c t inve stme nt. T he divisio n a ssists inve stme nt pro mo tio n a g e nc ie s to ide ntify a nd a ttra c t inve sto rs a nd stre ng the n the ir c a pa b ilitie s fo r inve stme nt a ttra c tio n a nd re te ntio n. We a lso he lp c o mpa nie s de c ide whe re to lo c a te ne w o pe ra tio ns a ro und the wo rld a nd imple me nt g re e nfie ld inve stme nt. Co nwa y E ve nts (fo rme rly L

• ndo n-ba se d Re d Hot L
• c ations) is the le a ding pro vide r o f

ne two rking e ve nts to e xe c utive s fro m a ll fie lds o f c o rpo rate a nd c ro ss-b o rde r inve stme nt. Our e ve nts inc lude the Glo b al F

• re ig n Dire c t Inve stme nt Asso c ia tio n Summit, whic h will b e he ld

Oc to b e r 26-28, 2015, in L

• ndo n, Unite d K

ing do m. Pro vide wo rld c la ss F DI tra ining Site Se le c tio n is re c o g nize d a s the le a ding pub lic a tio n in c o rpo ra te re a l e sta te , fa c ility pla nning , lo c a tio n a na lysis a nd fo re ig n dire c t inve stme nt. T he Industria l Asse t Ma na g e me nt Co unc il is the le a ding a sso c ia tio n o f industria l a sse t ma nag e me nt a nd c o rpo rate re a l e sta te e xe c utive s, the ir supplie rs a nd se rvic e pro vide rs, a nd e c o no mic de ve lo pe rs. T he Glo bal F

• re ig n Dire c t Inve stme nt Asso c ia tio n (GF

DI Asso c ia tio n) is the first-e ve r g lo b a l a sso c ia tio n de vo te d e ntire ly to pro mo ting c ro ss-b o rde r inve stme nt a nd c o rpo ra te e xpa nsio n. Co nwa y T ra ining ha s a n e sta b lishe d re puta tio n a s the le a ding pro vide r o f tra ining in the c ro ss-b o rde r inve stme nt fie ld a nd a re b a se d o n g lo b a l b e st pra c tic e s. Our tra ining is fully c usto miza ble a nd is de live re d b y o ur in-ho use e xpe rts fro m a c ro ss o ur va rio us divisio ns

Capabilitie s

How i

• w is

s the he pra practice

• f
• f si

site se sele lection li like the he Hunger Ga Game mes? s?

Five Similarities

• Many are chosen to participate, but in the

end all but one participant is eliminated.

• Both are at times cut-throat, perilous and

highly competitive activities.

• The incentive to win is the future health and

well-being of your people.

• In order to win, it takes relentless practice,

because only the best survive.

• Participants learn to question the

information coming out of enemy camps.

Site s select ctio ion: n: A A proce cess o

• f

elimina inatio ion.

How Sites Are Eliminated

• It is easier to eliminate a site than to

choose one.

• A faulty business climate is the first

eliminator.

• Excessive costs are the second

eliminator.

• Lack of support is the third eliminator.
• The goal: make the short list.

• 1. T

r anspor tation infr astr uc tur e

• 2. E

ase of pe r mitting and r e gulator y pr

• c e dur

e s

• 3. E

xisting wor kfor c e skills

• 4. L

and/ building pr ic e s and supply

• 5. Utility infr

astr uc tur e

• 6. State and loc al tax sc he me
• 7. F

le xibility of inc e ntive pr

• gr

ams

• 8. Availability of inc e ntive s
• 9. Ac c e ss to highe r

e duc ation r e sour c e s

• 10. L

e gal c limate (tor t r e for m)

So ur c e : Site Se le c tio n sur ve y o f c o r po r ate r e al e state e xe c utive s, Oc to be r 2014

T

• p 10 Site Cr

ite r ia

Site s select ctio ion: n: A hi highly hly competit itiv ive a activ ivit ity.

Site se le c tor s ar e looking for r e asons to e liminate site s fr

• m c onside r

ation – the fir st c ut. It is har de r to make the shor t list than it is to win the ac tual pr

• je c t.

Most site s ar e e liminate d due to lac k of suffic ie nt infor mation (inc omple te pr

• posal, missing data).

95 pe r c e nt of all site r e se ar c h is c onduc te d online . If a site se le c tor c alls you, you have made the shor t list.

How the Pr

• c e ss Wor

ks

It is impor tant to show we ll; don’t bungle the site visit. Cr itic al to have all ke y stake holde r s on the same page . Make sur e your data is up to date . Site se le c tor s will know and will disqualify your site if you use old data. Wor k c ollabor ative ly as a r e gion, not inde pe nde ntly as se par ate c itie s and c ountie s. Know whe n to pass on a le ad to anothe r c ommunity.

How the Pr

• c e ss Wor

ks

• 1. T

e xa s 689 fa c ility proje c ts

• 2. Ohio

582

• 3. Illinois

394

• 4. North Ca rolina

313

• 5. Ge org ia

311

• 6. Ke ntuc ky

258

• 7. Mic hig a n

230

• 8. Pe nnsylva nia

227

• 9. L
• uisia na

200

• 10. T

e nne sse e 195

So ur c e : Co nway Ne w Plant Database ; Pr

• je c t c r

ite r ia: must be $1 millio n o r gr e ate r

• r

c r e ate 50 ne w jo bs o r c r e ate 20,000SF

• r

mo r e o f ne w spac e ; must be c o r po r ate spac e .

T

• p State s: 2014

• 1. Chic ago, IL

385 fac ility pr

• je c ts
• 2. Houston, T

X 265

• 3. Cinc innati, OH

196

• 4. Atlanta, GA

186

• 5. Dallas- F
• r

t Wor th, T X 153

• 6. Ne w Yor

k, NY 120

• 7. Columbus, OH

117

• 8. De tr
• it, MI

112

• 9. L
• uisville , KY

86

• 10. Kansas City, MO

85

So ur c e : Co nway Ne w Plant Database

T

• p Me tr
• s: 2014

Ove ra ll E c onomic Stre ng th Ra nking s: 2015

• 1. Wa shing ton- Arling ton- Ale xa ndria , VA- DC- MD- WVA
• 2. Se a ttle - T

a c oma - Be lle vue , WA

• 3. Austin- Round Roc k, T

X

• 4. De s Moine s- We st De s Moine s, IA
• 5. Oma ha - Counc il Bluffs, NE
• IA
• 6. Sa n Antonio- Ne w Bra unfe ls, T

X

• 7. Na shville - Da vidson- Murfre e sboro- F

ra nklin, T N

• 8. Sioux F

a lls, SD

• 9. Sa lt L

a ke City, UT

• 10. Houston- T

he Woodla nds- Sug a r L a nd, T X

• 13. Da lla s- F
• rt Worth- Arling ton, T

X

So ur c e : POL ICOM.c o m

T

• p Me tr
• s: 2015

1. Shr e ve por t, L A 2. T ulsa, OK 3. Spr ingfie ld, MO 4. Chattanooga, T N 5. Jac kson, MS 6. Sioux F alls, SD 7. Me mphis, T N 8. Augusta, GA 9. Gr e e nsbor

• , NC

10. Columbus, GA

So ur c e : Walle tHub, 2015

Be st Citie s to Star t a Busine ss

12. Amar illo, T X 18. L ar e do, T X 22. Br

• wnsville , T

X 23. L ubboc k, T X 24. E l Paso, T X 33. Cor pus Chr istie , T X 41. Houston, T X 49. Dallas, T X 59. San Antonio, T X 60. Ar lington, T X 63. F

• r

t Wor th, T X

So ur c e : Walle tHub, 2015

Be st Citie s to Star t a Busine ss

1. Ne war k, NJ 2. Je r se y City, NJ 3. Gar de n Gr

• ve , CA

4. Yonke r s, NY 5. F r e mont, CA 6. Ontar io, CA 7. Oakland, CA 8. Santa Ana, CA 9. San Jose , CA 10. Anahe im, CA

So ur c e : Walle tHub, 2015

Wor st Citie s to Star t a Busine ss

1. T e xas 2. Ge or gia 3. South Car

• lina

4. Nor th Car

• lina

5. Vir ginia 6. L

• uisiana

7. T e nne sse e 8. F lor ida 9. Ohio 10. Alabama

So ur c e : Site Se le c tio n sur ve y o f c o r po r ate r e al e state e xe c utive s, Oc to be r 2014

Be st Busine ss Climate s

Wi Winning he helps lps y you

• ur pe

r peopl

• ple.

What Helps Your People Most: Primary Industries

The annual economic impact of a manufacturer which employs 1,000 workers and pays an average annual wage of $45,000:

• - Creates another 1,700 jobs.
• - Generates more than $86 million in community payrolls.
• - Raises income to support 2,100 households.
• - Generates $8.5 million in local government taxes.
• - Creates more than $130 million in taxable retail sales.
• - Causes more than $550 million in economic transactions within

the community.

• - Creates 180 retail jobs, 180 health care jobs, 250 wholesale &

transportation jobs, 150 finance & professional jobs, 170 restaurant & hotel jobs, 400 other factory jobs, and 300 jobs in construction & other sectors.

The he race f for N

• No. 1:

1: Only ly the he be best st su survi rvive

Be proa c tive ly e ng a g e d with your sta te E DO. Work c olla bora tive ly with your re g iona l pa rtne rs. Build re la tionships with influe ntia l site se le c tors. F ind out whe re c orpora te re a l e sta te e xe c utive s a nd site se le c tion c onsulta nts a re me e ting , a nd g o the re . Build a c ompre he nsive da ta ba se of your a re a ’s a va ila ble building s a nd site s. De ve lop a stra te g ic ma rke ting pla n a nd inve st in it.

How to Influe nc e the Pr

• c e ss

A lot of what passes for marketing today are communities fooling

• themselves. – Ed Burghard, former chief product marketer,

Procter & Gamble; former marketing director, JobsOhio Follow the Five Rules: 1) Have a compelling story to tell; and be authentic. 2) Craft your story in a way that interests the audience. 3) Research and identify your target audience. 4) Commit the resources necessary to move the needle positively in your direction. 5) Measure your results (ROI).

Mar ke ting 101

Southwest Louisiana Economic Development Alliance: 1) Committed 8 years ago to long-term branding campaign. 2) Executed this through a series of in-depth profiles. 3) Achieved consistent, measurable results. 4) By year-end 2010, Lake Charles was the No. 1 MSA in U.S. in corporate project activity for metro areas under 200,000 in total population. 5) By February 2015, Lake Charles had more industrial projects under construction or planned ($85 billion) than any other metro area in the country.

Mar ke ting Case Study

The starting point for Lake Charles, La.: Hurricane Rita in October 2005 virtually wiped out the coast of Southwest Louisiana. Lesson: Don’t wait for disaster to motivate your community to engage in a strategic, long-term approach to economic development.

Mar ke ting Case Study

Sle leight ht of

• f ha

hand: Who can y you tr trust? t?

The Case for Texas

Consider Your Advantages: 1) Texas has the nation’s No. 1 business climate, according to Chief Executive magazine and Site Selection readers. 2) Texas produces more corporate facility expansion projects than any other state annually, and it’s not even close. 3) Texas employs a workforce of more than 13 million people, second largest in the U.S. 4) Texas has ranked as the top exporting state in the country since 2002. 5) More than 4.1 million Texans aged 25 or older hold a bachelor’s degree or higher. 6) Austin, Dallas and Houston rank 1, 2 and 4 among the fastest- growing cities in the U.S. 7) Texas leads all states in annual job growth. Since 2007, Texas has added 1.2 million net new jobs, most in the nation.

Closing Observations

Understand the Macro-Economic Trends Driving Site Selection: 1) For the most part, jobs continue a southward and westward migration across the country. 2) Restructuring of the Texas Enterprise Fund could have a dramatic effect on the movement of large-scale projects. 3) Speed to market is more crucial than ever, highlighting the importance of having available inventory. 4) As Walmart and other large retailers adopt a Buy American strategy, reshoring of manufacturing operations will continue. 5) States and regions capable of reproducing the highest volume

• f STEM workers will win the bulk of new economy jobs.

6) The greatest threat to Texas’ sustained prosperity would be a sudden shift in policy curtailing support of economic development. 7) States to watch: Utah, Georgia and Tennessee.

And ma may the he od

• dds be

s be ever in in y your f fav avor.

Contact Information: Ron Starner EVP, Conway Inc., Atlanta, GA Phone: 770-325-3425 Email: ron.starner@conway.com Web: www.siteselection.com Twitter: @RonStarner

T hank You