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IEDC Marketing & Attraction: Marketing

Specific Sites

22

Outline

1. What Atlas Research Says about Marketing Sites

2. How a Site Selector Specializing in Manufacturing and Office Gathers Information Today

3. How Economic Developers Can Take Advantage of These Trends

4. Q+A

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What Atlas Research Says

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The Corporate Location Process

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Please rate the following in terms of their importance as a source of information:

Information Source %

Important, 2011

% Important,

2006 Site visits (including familiarization tours) 100% 100%

Existing relationships with ED officials 95%  88%

Community websites 90% 63%Third party national data sources 90% n/a

Past experience with other deals 81% 71%Word of mouth from peers 57% 43%Calls from local officials 48% 29%Existing relationships with local real estate community

38% 29%

National conferences 29% 0%Trade magazines 29% 14%Social Media/Social Networks 24% n/a

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Most Important and “Fastest Growing” Location Factors

2011 2006%

differenceAccess to customers (large markets) 95% 69% 26%

Financial incentives from communities 95% 69% 26%

Proximity to a research university 67% 43% 24%Access to technical/scientific workers 90% 70% 20%

Quality or fit of specific real estate 90% 75% 15%Access to transportation infrastructure 90% 76% 14%

Pro-business tax-regulatory climate 95% 83% 12%Access to senior management talent 76% 64% 12%

Quality of life for employees 62% 60% 2%Ability to recruit workforce 95% 96% -1%A rapidly growing region 57% 60% -3%Access to cultural amenities 43% 49% -6%Access to outdoor recreation 10% 38% -28%Climate (weather) 29% 58% -29%

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Top Pages Used on Atlas Websites That Include a Link to An Outside GIS System/Property Database

Page Views Per 100 Site Visits

About Us 11Site Selection Services 11Data Center 10Contact Us 7Visits to Property Search or GIS 5

Source: Study of Analytics of Atlas websites with a link to an external GIS, May 2011

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Top Pages Used on Atlas Websites That Include Integrated GIS

Page Views Per 100 Site Visits

Property Searches 38Business Searches 23Visits to GIS Landing Page 19About Us 14Data Center 12Contact Us 10Site Selection 7

Source: Study of Analytics of Atlas InSite websites with integrated GIS, May 2011

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Question:What is the information you most frequently get asked to provide for Site Selectors?

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How a Site Selector Specializing in Manufacturing Gathers Information Today

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Keith Gendreau

• Based in New York, NY

• Senior Consultant with Cushman & Wakefield. Formerly with Wadley Donovan Gutshaw Consulting.

• Geographer by Trade. Master’s Degree in Economic Development.

• Specializes in Location Strategy and Labor Analytics.

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Strategic Analysis Framework

Access

Geographic

Real Estate

Operational

Financial Opportunity

Proximity or accessibility to other operations and/or customers Management often prefers quick and easy access to operations via nonstop or one-stop flights. Additionally, depending upon the nature of the business, potential customers may be invited to tour the facility.

Human Resources

Industry Concentration

Workforce recruiting and retention Accessibility to the right workforce is a primary concern for nearly all location decision-makers. A location can improve a company’s ability to hire employees with “target” skills and attributes.Access to an experienced workforceOrganizations vary greatly regarding their desire to locate in areas with high levels or limited competition for labor. Organizations that require specialized skills are often drawn to areas with high industry concentration.Lowering operating costs In order to remain competitive, organizations are constantly seeking ways to lower costs. Costs of labor, real estate, tax and other business costs are highly correlated with location.Creating efficiencies Depending on a company’s work process requirements and strategic positioning (quality-oriented, cost-driven, or a mix of both), co-location or bifurcation of operations may better support objectives or strategies.Existing facility vs. build-to-suit Organizations often must react quickly to the customers they serve. Readily available real estate is critical when decision time frames are tight.

Operational constraints and/or risk mitigation Typical drivers of geographic criteria include contractual obligations, alignment with customers, and continuity of business concerns.

Location decisions are among the more complex issues that companies face. They often involve long-term allocation of capital and human resources, and a major commitment of company resources in a short timeframe. Specific issues most important to each organization vary based on business objectives and strategies, resulting in different “top” locations for organizations. Issues considered during a location decision typically include:

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The Location Evaluation Process Evolution

The location strategy process has remained largely unchanged over the past decade. What has changed are the timeframe and tools for which to deliver results and recommendations. Today, more so than ever, clients are:

– Making decisions quickly and efficiently

– Seeking available buildings meeting specific requirements

– Cost sensitive (labor, utilities, freight, occupancy, incentives offset)

– Interested in the ‘bottomline’ operating cost vs. non-cost environment classic tradeoff

1 Business & Workforce

Assessment

2Market

Screening & Evaluation

3 Short-list

Comparison

Establish business drivers, non-

economic location criteria and target demographic and

skill profiles

Screen and evaluate

alternative markets on select

criteria and workforce factors

to determine short-list markets

for comparison

Field-validate and compare markets

based on economic and non-economic

performance to determine location recommendations

4Incentives

Negotiations

Develop strategy for competition

across communities and

negotiate economic incentives

GIS Applications

GIS Applications

GIS Applications

GIS Applications

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Decision Support Data Sources and Tools

Geographic Information Systems (GIS) Mapping

Location specific wage database

C&W Team, 150+ years of specific relevant experience

Comprehensive demographic and segmentation database

ACCRA cost of living index; State incentives database

Comprehensive Industry employment forecast , population mobility data

MapInfoMapInfo

Cushman & Wakefield Global Business Consulting maintains the most up to date demographic databases and spatial analysis tools to execute projects of this type.

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• Situation: – HQ relocation from Midwest– Includes a new showcase manufacturing facility– Critical international air service requirement

• Once 2 priority metros were identified, a sub-market location screen was conducted:– Headquarters

• “Cluster” analysis focused on satisfying executive lifestyles including, quality-of-life, commute times, and airport access.

– Manufacturing Facility• Facility must reside within 45-60 minutes of the new HQ. Human resources

driven, other key considerations include sites/buildings and incentives.• Results support:

• Site recommendations for due-diligence field study (define top two HQ and three MFG in order of preference)

• Viability of least preferred markets• Likelihood and magnitude of incentive benefits

Case Study 1: Workforce Analysis

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Case Study 1: Workforce Analysis

• To identify best HQ submarkets, the analysis focused on resident characteristics aligned with relocatee demographics and quality-of-life indicators.

• Plotting of “executive lifestyle clusters” (green shading) within a 60-minute drivetime of Dulles airport.

• Both identified submarkets are optimally positioned for maximum exposure to regional commutable executive housing options.

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Case Study 1: Workforce Analysis

• Manufacturing Plant Location Screen.

• Objective: Identify study sectors meeting minimum labor thresholds in production occupations, and specifically machine operators & assembler occupations (red hatch marks).

• Results: Rank order study sectors for field study validation on key non-cost (i.e., demographic, labor supply/demand, etc.) and cost variables.

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Intelligence Gathering1

Findings2

Translation into Workforce Profile

3

Application4

Results5

• Recent merger provided a new service region in Houston and created high call volume/turnover and required greater customer service capacity

• Client was geographically constrained within the inherited service footprint but chose to stay at least 15 miles from the current site

• We requested HR data from both Houston and an established center elsewhere

• Set up a “Push – Pull” argument to be near positive factors (target households, education institutions) and away from negative factors (Natural Disaster, Competitors)

• Identified two leading candidates for Due Diligence• Spring – North

• Mapped densities of both target groups

• Primary Group reflected the “core” demographic drawn to these jobs in Houston

• Secondary Group identified an older population segment, more like Benchmark, where a more mature, “stable” worker might be found

• Although the tenure and gender percentage was nearly identical, Houston’s workforce was nearly 5 years younger on average

• Also, Houston hired twice as many candidates under age 25 than did the benchmark city

• Used dot density map to identify proxy areas of Target Profile concentration which are within the service footprint, but outside of the 15 mile buffer from the current site

Pull Factors

Push Factors

1

2

3

45

6

• Pasadena - Southeast

Case Study 2: Workforce Analysis

i.e., Target Households, Educational Institutions

i.e., Natural Disaster RiskLabor Market Competitors

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Question:What Information Do You Believe is Accessed Most Frequently about your Sites and Buildings Today?

2020

Site Overlays Natural Disaster Risk Assessment

Additional GIS Use Examples

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Labor Competitors Employment Plots

Additional GIS Use Examples

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Commutation Analysis

Additional GIS Use Examples

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GIS Content on Economic Development Websites

Existing Building Critical Search Fields

City

County

Minimum Square Feet

Maximum Square Feet

Minimum Clear Height

Minimum Column Spacing

Sale, Lease, Both

Building Type (i.e., Industrial, R&D, Commercial, etc.)

Specialty Feature (i.e., Call Center, Clean Room, Cold Storage, Data Center, etc.)

Zoning

Cranes

Docks

Rail (preferred/required)

Max Distance to:- Interstate

- 4-Laned Highway- Commercial Airport

Previous Use

LandCritical Search Fields

City

County

Minimum Acres

Maximum Acres

Site Zoning

Rail Proximity

Max Distance to:- Interstate

- 4-Laned Highway- Commercial Airport

Brownfield or Greenfield

• Many websites of economic development entities fall short of providing the information that site selectors need for discriminating among areas in the previously defined location screening process.

• Concerning GIS content, critical applications include:– Interactive Property Search Maps– Interactive Demographics & Major Employer Plots– Interactive Base Layer, Land Use and Zoning Maps– Downloadable Shapefiles (.shp) for use in mapping

software• To provide better service to the corporate site seeker, the

following guidelines are suggested for economic development organization websites:

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GIS Content on Economic Development Websites

Base Layer Menu

County Boundary

Streets

Airport Runways , Noise Contours, Property Lines

Subdivisions

Zoning Boundaries

Parcels

Zip Codes

Rivers

Forest / Preserved Areas

Flood Plains

Elevation (10 ft and 2 ft contours)

Future Land Use

Color Aerials

City/Municipal Boundaries

Schools (including colleges)

Rail (yards, spurs, main lines)

Utilities (to the extent available)

Future Land UseSubmenu

Business Park

Commercial

Developmentally Sensitive

Hydrology

High Suburban Density

Industrial

Public / Institutional

Recreation

Rural Density

Rural Land

Suburban Residential

Transportation

Urban Density

• Baseline content that would facilitate an interactive GIS platform should include the following “activateable” menus:

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How Economic Developers Can Take Advantage of These Trends

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Top-Notch Websites that Market Sites & Buildings Northern Kentucky:• Cincinnati Airport runway flight noise• http://arcims.boonecountygis.com/Airpor

tBase/

Greater Wichita Economic Development Coalition

• “Location Scout” section• www.gwedc.org/index.php

Ohio Business Development Coalition• www.ohiomeansbusiness.com

Charlotte Regional Partnership• charlotteusa.com • Mecklenburg County GIS:

maps.co.mecklenburg.nc.us/edgis

Kansas City Area Development Council• www.thinkkc.com/

Indy Partnership• www.indypartnership.com

Oklahoma Department of Commerce• stateok.zoomprospector.com

Pennsylvania• pasitesearch.com

Source: Boone County GIS

Alabama Power• www.amazingalabama.com

Commerce Lexington Economic Development

• www.locateinlexington.com

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Question:Based on This Presentation, What Are the One or Two Things You Would Change About How You Marketing Your Sites and Buildings?

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Q+A

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Continue the dialogue with Atlas

• Continue the Conversation: – Follow us on Twitter: www.twitter.com/AtlasAd

• Join the community of innovative economic development marketers– Join our Next Gen Economic Development

Marketers LinkedIn Group

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Contact Atlas

Contact information:

2601 Blake Street, Suite 301Denver, CO 80205

Contact: Ben Wrightt: 303.292.3300 x 210

benw@Atlas-Advertising.comwww.Atlas-Advertising.com

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