overcoming the odds: how site selection in small towns is ......development boot camp august 28,...
TRANSCRIPT
Overcoming the Odds:
How Site Selection
in Small Towns is Like
the Hunger Games
Ron Starner
Florida Rural Economic
Development Boot Camp
August 28, 2014
How is the practice
of site selection like
the Hunger Games?
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 selection:
A process of
elimination.
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.
Most Important Site Criteria
1. Existing work-force skills.
2. Transportation infrastructure.
3. State and local tax scheme.
4. Utility infrastructure.
5. Land/building prices and supply.
6. Ease of permitting and regulatory procedures.
7. Flexibility of incentive programs.
8. Availability of incentives.
9. Union activity.
10. Access to higher education resources.
Source: Site Selection survey of corporate site selectors, October 2013
Site selection:
A highly
competitive activity.
Top 10 States: Site Selection
Governor’s Cup for 2013
1. Texas 657 projects
2. Ohio 480
3. Illinois 383
4. Pennsylvania 348
5. Michigan 312
6. Georgia 299
7. North Carolina 223
8. Virginia 208
9. Florida 193
10.Tennessee 187
Source: Site Selection, March 2014
Top 10 in Projects Per Capita: 2013
1. Nebraska 109 projects
2. Ohio 480
3. Louisiana 180
4. Kentucky 163
5. Kansas 106
6. Iowa 104
7. Alabama 159
8. Michigan 312
9. Georgia 299
10.Illinois 383
Source: Site Selection, March 2014
Top 10 Large Metro Areas: 2013
1. Chicago 373 projects
2. Houston 255
3. Dallas-Fort Worth 178
4. Atlanta 164
5. Detroit 129
6. Cincinnati, OH 122
7. Kansas City 111
8. Columbus, OH 102
9. Philadelphia 97
10.New York City 91
Source: Site Selection, March 2014
Top 10 Micropolitan Areas: 2013 1. Wooster, OH 27 projects
2. Tupelo, MS 19
3. Cullman, AL 18
4. Findlay, OH 15
5. Morgan City, LA 11
T6. Alexandria, MN 9
T6. Natchez, MS-LA 9
T6. Danville, VA 9
9. Clarksburg, WVA 8
T10. Batavia, NY 7
T10. Lumberton, NC 7
T10. Fremont, OH 7
T10. Tiffin, OH 7
T10. Wilmington, OH 7
T10. Dyersburg, TN 7 Source: Site Selection, March 2014
States With Most Top Micros: 2013
1. Ohio 15 micro areas
T2. Georgia 9
T2. Michigan 9
T4. North Carolina 8
T4. Tennessee 8
T6. Iowa 7
T6. Kentucky 7
T6. Nebraska 7
9. Minnesota 6
T10. Alabama 5
T10. Mississippi 5
T10. New York 5
T10. Wisconsin 5
Source: Site Selection, March 2014
Winning helps your people.
Top 10 Cities in Income Growth:
2007-2011
1. Chico, Calif. 32.0%
2. Greeley, Colo. 24.6%
3. Bellingham, Wash. 21.1%
4. Yorba Linda, Calif. 20.4%
5. Norman, Okla. 19.0%
6. Gainesville, Fla. 18.7%
7. Brownsville, Texas 17.8%
8. Syracuse, N.Y. 17.5%
9. New Orleans, La. 15.6%
10.Tyler, Texas 14.5%
Source: U.S. Census Bureau; Personal Median Income Growth
Economic Strength Ranking:
Metro Areas, 2004-2014
Metro Area 2004 2014
Miami-FL-WPB 82 114
Tampa-SP-Clear. 32 116
Orlando 21 117
Jacksonville 74 143
Crestview-FWB-Des. 113 163
Panama City 196 213
Naples 63 222
Tallahassee 98 237
Gainesville 197 267
Pensacola 255 272
Source: POLICOM.com Ranking of 381 US Metros, 2014
Economic Strength Ranking:
Micro Areas, 2004-2014
Micro Area 2004 2014
Key West 79 123
Lake City 83 223
Okeechobee 453 383
Palatka 514 498
Arcadia 485 525
Wauchula 505 531
Clewiston 497 533
Source: POLICOM.com Ranking of 576 US Micros, 2014
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.
Source: William Fruth, “The Flow of Money,” POLICOM.com
The race for No. 1:
Only the best survive
Top 10 Business Climates:
2013
1. Georgia
2. North Carolina
3. Texas
4. Ohio
5. Tennessee
6. Louisiana
7. South Carolina
8. Virginia
9. Kentucky
10.Indiana
13.Florida
Source: Site Selection Magazine, November 2013
Top 10 Characteristics
of High-Performing Communities
1. Support for workforce development & training
2. Flexible, customized incentives programs
3. Pro-business government
4. Competitive transportation infrastructure
5. Available buildings & sites
6. Expedited permit approval process
7. Proactive marketing program
8. Access to quality higher-education assets
9. Support for innovation & entrepreneurship
10. Proven track record of corporate plant investment
Advice From No. 1 Micropolitan
Area in the US: Wooster, Ohio
1. Build a strong connection to regional & state groups.
2. Know your product: assets, costs, workforce, quality-of-life attributes, etc.
3. Communicate with the outside world constantly. Social media makes this cheap and easy.
4. Connect economic development efforts with planning efforts.
5. Know your rural businesses and support them. In most cases, this will include the agricultural community.
6. Adopt a formal business retention program.
7. Identify your industry clusters. Go big with one or two.
Source: Rod Crider, President of Wayne County EDC, Ohio
Sleight of hand:
Who can you trust?
Marketing 101
A lot of what passes for marketing today are communities fooling
themselves. – Ed Burghard, former chief product marketer,
Procter & Gamble, and former executive director, OBDC
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).
Marketing Case Study:
Lake Charles, La.
Southwest Louisiana Economic Development Alliance:
1) Committed 7 years ago to long-term branding campaign.
2) Executed this through a series of in-depth profiles.
3) Achieved consistent, measurable results.
4) By 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 2014, Lake Charles led the nation with $64 billion in
ongoing and planned industrial expansion projects.
Closing Observations
1) It is always up to the local organization to build
relationships. Be proactive.
2) You must know and be able to articulate your
unique differentiator from other locations.
3) You can’t wait for your audience to come to you;
you must go to them.
4) Consider participating in the US Cluster Mapping
Project.
5) Grow your own strategy to support innovation and
entrepreneurial activity.
And may the odds be
ever in your favor.
Ron Starner
Executive Vice President
Conway Data Inc.
770-325-3425
www.siteselection.com