EDABC Data Presentation

The Numbers and the Story
Top Ten Site Selection Data Standards

EDABC WESTERN ECONOMIC DEVELOPMENT COURSE

28-31 October, 2012

ABOUT US
CWS Consulting Group and Investment Consulting Associates
Coming together as one global team
Locations in:
• North America
• Latin America
• Europe
• Asia

Services:
• Corporate Location Selection
• Incentives Negotiation
• Investment Advisory
• Economic Development

Real estate is a strategic asset. Each and every new location decision carries cost, workforce, and
other implications. We provide our clients with the insight needed to quickly build solutions which
are flexible enough to evolve with the company’s changing needs.

©© 2012, CWS Consulting Group LLC
2012, CWS Consulting Group LLC 1

INTRODUCTION

 Why Data Matters
 Which Pieces of Information are Most Important
 How do we Make Them Available

A New Generation in FDI Advisory

HOW ARE SITE LOCATION DECISIONS MADE

 Highly rigorous and
completely objective
process
 Consultants always have all
of the pertinent information
on all options
 The most qualified location
is always the one chosen


HOW ARE LOCATION DECISIONS MADE

 Understand location “problem” and
define success criteria. Examine
Context of the location decision
 Identify communities that meet the
basic thresholds (the must-have items
on the list above)
 Evaluate the remaining ones based on
the remaining tradeoffs
 Visit the communities themselves to
evaluate remaining factors and begin
negotiations


LOCATION DECISION PROCESS

Strategic Location With Access to:
Markets, materials and partners

Resources/Business Environment:
• Operating costs and incentives
• Sites/buildings, labor/skills, training,
utilities (cost/capacity), etc.
• Does the community embrace us?

Feasibility (Cost/Risk) Analysis

© 2012, CWS Consulting Group LLC

LOCATION DECISION PROCESS

Companies balance the relative
importance of a combination of factors Business
Goals
when making location decisions Intangi-
Workforce/
bles/
Talent
Values

• Combinations are important - No one
factor drives the whole decision Internal
Business
and Location
• Importance for one opportunity may External Strategy
Environ-
ment
Partners
differ greatly from others

Infrastruc-
Logistics
ture and
and Access
Utilities
All-In
Costs


LOCATION DECISIONS PROCESS
Data- and Model-Driven Interactive with Communities

Field Validation

Final
Negotiations
Planning and Initial Location
and
Strategy Screening Screening
Location
Selection

Cost
Modeling
Def ined Strategy Universe of Short-List of
and Evaluation Criteria Location Candidates Location Candidates

Pref erred and Alternate
Location(s)

Consultative Data-Driven Qualitative & Quantitative

© 2012, CWS Consulting Group LLC 7

HOW DOES A LOCATION MODEL WORK

 Translates priorities and data
into a relative weighting and
ranking of options
 Highly data driven
 Difficulty comes when
comparing data across
different systems, or when
data is incomplete

Lack of data = Unknowns = Risk


SAMPLE MODEL


SAMPLE MODEL

Population and
Population and Demographics 5.0% Demographics

Employment Levels 10.0% Employment Levels

Industry-Specific Employment 10.0% Industry-Specific
3.0%
2.5% 7.0% 5.0% Employment
Occupation-Specific Employment (per 1000) 10.0%
Occupation-Specific Salaries (Annual Mean 2.5% Occupation-Specific
10.0%
2010) 30.0% Employment (per 1000)

Education 10.0% Occupation-Specific
Salaries (Annual Mean
10.0% 10.0% 2010)
Transportation and Market Access 10.0% Education
Tax Regime 2.5%
10.0% 10.0% Transportation and Market
Climate and Natural Hazards 2.5% Access
Crime 3.0% Tax Regime

Quality of Life 7.0%
30.0% Climate and Natural
100.0% Hazards
Crime

Quality of Life


WHAT’S THE MOST IMPORTANT THING IN A
LOCATION DECISION?

 Workforce
 Infrastructure
 Access
 Clusters/Networks
 Cost
 Regulatory Framework
 Tax/Incentives


SO WHAT INFORMATION SHOULD WE
HAVE…

…On our website
…Ready when we receive a prospect call

© 2012, CWS Consulting Group LLC 12

TOP TEN SITE SELECTION QUESTIONS
(AND THE DATA BEHIND THEM)
1. Is The Talent There
2. Can I get There From Here
3. Who Else is Like Me, and Who Can I Work With?
4. Are My People Going to Want to Be There
5. How Much Will It Cost?
6. Can I Operate A……
7. Is there a Place for My Stuff
8. What do Your Finances Look Like?
9. Are There Programs to Help Me
10. Who Is Going to Help Me


1. IS THE TALENT THERE

 Specific Labor Availability
• Demographic cohorts
• Specific job titles
• University Programs
 Culture
 Generally Accepted Practices
DEMOGRAPHICS BY AGE COHORT
LABOR FORCE AND EMPLOYMENT TRENDS
OCCUPATION AND INDUSTRY SURVEY
EDUCATIONAL INSTITUTIONS AND PROGRAMMES
REGULATORY ENVIRONMENT, UNIONIZATION


IS THE TALENT THERE

Talent In Number Currently Employed Talent Out
LABOR MARKET

Offer Extended

Turnover
2nd Interview
1st Interview
GREATER

Business Unit
Screen

Productive Employee Base
Retirement

Growth or Contraction


2. CAN I GET THERE FROM HERE

 Ability to Access Key Markets
or Customers
 Interaction with
Transportation Network

ROADWAY CONNECTIONS
RAIL NETWORK, FACILITIES, AND CONNECTIONS
SEA AND AIRPORTS
PASSENGER AND FREIGHT FACILITIES


3. WHO ELSE IS LIKE ME

 The presence of peers in
the area indicates existing
talent, opportunities for
teaming, likely suppliers,
vendors, etc

LIST OF TOP EMPLOYERS BY INDUSTRY
RECENT OPENINGS/CLOSINGS
CONTACT INFORMATION
Source: Cluster Mapping Project, Harvard Business School


AND, WHO CAN I WORK WITH?
 Likewise, companies need to know that vendor/service support
exists

EMPLOYMENT BY INDUSTRY
LIST OF TOP EMPLOYERS BY INDUSTRY
RECENT OPENINGS/CLOSINGS
CONTACT INFORMATION


4. ARE MY PEOPLE GOING TO WANT TO BE
THERE
 Quality of Life means different things to different people
 Typically most important when:
 Recruiting specialized talent
 Relocating an existing staff

HOUSING COST (BY TYPE)
COST OF LIVING
????


5. HOW MUCH WILL IT COST?

 All other tradeoffs will eventually be considered against
financial gain/loss
NOTE: Change
profit on "Tax
SUMMARY COMPARISON Assumed profit = $40 Million Costs" tab
All $(000) Year
1 2 3 4 5 6 7 8 9 10
Total Costs
Base Case $ 172,304 $ 73,322 $ 74,933 $ 76,581 $ 78,265 $ 79,986 $ 81,747 $ 83,546 $ 85,386 $ 87,266

Location A $ 194,618 $ 69,600 $ 71,196 $ 73,101 $ 74,966 $ 76,867 $ 83,337 $ 85,312 $ 87,325 $ 89,578
Location B $ 195,307 $ 76,175 $ 77,811 $ 79,483 $ 80,215 $ 82,921 $ 84,703 $ 86,524 $ 89,359 $ 91,260
Location C $ 191,467 $ 74,982 $ 76,648 $ 78,351 $ 80,092 $ 82,122 $ 83,941 $ 85,801 $ 87,702 $ 89,645
Location D $ 195,870 $ 79,489 $ 81,261 $ 83,072 $ 84,924 $ 87,068 $ 89,004 $ 90,983 $ 93,006 $ 95,074
Location E $ 188,565 $ 70,615 $ 72,214 $ 73,849 $ 75,519 $ 77,825 $ 79,569 $ 84,089 $ 85,910 $ 87,771
Location F $ 188,746 $ 72,745 $ 74,396 $ 76,084 $ 78,660 $ 80,425 $ 82,230 $ 84,076 $ 85,964 $ 87,894
Location G $ 195,770 $ 78,664 $ 80,344 $ 82,061 $ 83,816 $ 84,609 $ 86,441 $ 88,314 $ 90,228 $ 92,184

NPV % of Lowest Rank
Base Case $ 702,604 100% 1

Location A $ 714,471 102% 3
Location B $ 744,822 106% 6
Location C $ 734,363 105% 5
Location D $ 771,847 110% 8
Location E $ 706,743 101% 2
Location F $ 718,964 102% 4
Location G $ 759,483 108% 7

WAGE AND BENEFITS COSTS BY OCCUPATION
REAL ESTATE COSTS
UTILITIES COSTS


6. CAN I OPERATE A….
(UTILITIES AND CAPACITY)
 Draw, rate, and resiliency all
may come into play
depending on specific
business needs

ELECTRIC, GAS, WATER, SEWER RATES
TELECOMM CAPACITIES
CAPACITY FIGURES
NETWORK MAPS


7. MUNICIPAL FINANCES (AKA TAXES)
 Typically play a somewhat
smaller role, but some can be
very important to some
forms of business
 Examples include inventory,
telecomm, sales/use…

TAX RATES (AND BASIS) BY TYPE
EXPLANATION OF EXEMPT PROPERTY/ACTIVITIES


8. ARE THERE PROGRAMS TO HELP ME
• Incentive: Any policy or program which endeavors to modify the
behavior of companies making hiring or investment decisions (see also
“Inducement”)
• Automatic – Granted once thresholds are met
• As-of-Right – Granted if applied for and thresholds are met
• Discretionary – May be granted if applied for, but agency may
decide for or against granting
• Negotiable – Typically highly flexible and at the full discretion of
the granting agency
• Note: Typically does not include a community’s natural or
economic advantages
GRANT AND CREDIT PROGRAMS
TRAINING PROGRAMS
REBATE PROGRAMS
FINANCING PROGRAMS


BC INCENTIVE CATALOG

• Scientific Research and Experimental Development
(SR&ED) Investment Tax Credits (ITCs)
• Incentives for Machinery and Equipment
Investment
• Film Production Tax Credits
• Interactive Digital Media Tax Credit
• Eligible Business Corporation and Venture Capital
Corporation tax credits
• International Business Activity Program
• BC Hydro Powersmart / Power Tech


9. IS THERE A PLACE FOR MY STUFF
 Real estate may or may not play
a critical role in early stages
 Basic information on availability
and cost is very useful
 More detailed “site finder”
services can occasionally make
a difference

AVERAGE RENTAL COST (BY AREA, BY TYPE)
AVERAGE PURCHASE COST (BY AREA, BY TYPE)
CONSTRUCTION COSTS


10. WHO IS GOING TO HELP ME

 When the time comes, there is NO substitute for a real
person!

THE NAME, DIRECT PHONE NUMBER, AND EMAIL ADDRESS OF A RESPONSIBLE PERSON


THE COMMUNITY WEBSITE
 First opportunity (and
occasionally only) to
engage site selector, and
independent companies
 MUST be easy to find,
easy to navigate, and
relatively complete
 Remember, it’s easier to
drop a location option
than to try to find data
that isn’t there


THE IEDC STANDARD
Have you ever wondered what a site selection consultant looks for in determining what
communities to recommend to their client?
The answer is accurate information in a format that can provide an apples-to-apples
comparison of communities.
http://www.iedconline.org/?p=data_standards


THE IEDC STANDARD

 Was developed through significant interplay with real site
selectors on questionnaires from actual projects
 Some of the data is now available through standardized
sources – leverage these
 Do not be daunted by the size – Even having the first five
sheets done makes a difference!


THANK YOU

Christopher Steele
Chris.Steele@cwsgrp.com
Chris@ic-associates.com

Telephone: 617-314-6527

www.cwsgrp.com

www.ic-associates.com


EDABC Data Presentation

Empfohlen

Empfohlen

Weitere ähnliche Inhalte

Was ist angesagt?

Was ist angesagt? (20)

Andere mochten auch

Andere mochten auch (6)

Ähnlich wie EDABC Data Presentation

Ähnlich wie EDABC Data Presentation (20)

EDABC Data Presentation