PRESENTATION TO: KANSAS ECONOMIC DEVELOPMENT ASSOCIATION ANNUAL CONFERENCE Oct. 17, 2013 Presented by: Atlas Insight, LLC
Corporate Challenges 2 Required to find ways to deliver cost savings, even when the operation is running as lean as possible already How do you cut your payroll costs when an employee is already doing – the same job that was being done by two or three individuals just 5 years ago? How can you justify facility movement which in most cases causes short – term capital to be expended, even if that capital spend would result in long term operational savings? You look to gain cost savings by breaking the traditional model of only – considering major cities for your back office processing and smaller manufacturing operations
Selling Your Advantage 3 Rural locations have unique advantages that may be beneficial to the right prospect Costs are cheaper: labor costs averages about 15-20% less, real – estate and construction costs are lower, and tax burdens are smaller Turnover may be lower: Employees tend to be more loyal as other – opportunities are not abundant, worker pride and morale may lead to higher productivity – provided they are treated fairly Access to key decision makers speed the process: faster building – permits, reduced time to make rational decisions, cleaner incentive process, all can lead to considerable advantages Being named the “employer of choice” leads to better staffing options – and numerous partnership opportunities
Disadvantages 4 Learn to address and overcome these items early in the site selection process Perception of a lack of skilled workers – Perception that it would be hard to staff management positions in a – rural location because of “lower quality of life” Transportation can be a logistical nightmare for corporate executives – coming from a home office location It is tough to get your message out there and get noticed –
Getting Noticed 5 One of the most difficult challenges facing a rural community is the ability to get noticed, so how can this be overcome? Spend your marketing dollars wisely by cultivating relationships not – only with consultants and companies, but also with the State Have an economic development specific newsletter that goes out only – as often as you can tell a meaningful story Invest in a regional alliance designed to market multiple locations – connected by a common theme (airport, university, industry cluster, population center, etc.)
Meaningful Incentives 6 Incentives have become increasingly important in the final decision making process Deal closing funds are becoming commonplace – Locals: Understand the incentives that are offered at the State level – Even when traditional funds are not available look for creative ways to – help close the deal such as free recruiting and training space, pad ready sites, academic partnerships, permitting assistance, etc.
Partner Contacts 7 Brian P. Corde Kathy Mussio Managing Partner Managing Partner Atlas Insight, LLC Atlas Insight, LLC 732.410.4568 732.610.1750 bcorde@atlasinsight.com kmussio@atlasinsight.com
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