economic development study - scottsbluff · 2. understand the strengths and weaknesses of the...

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ECONOMIC DEVELOPMENT STUDY TARGET INDUSTRY UPDATE

PREPARED FOR THE:

Scottsbluff/Gering (NE) Area

PREPARED BY:

September 2014

TABLE OF CONTENTS

Page #

Introduction 4

Phase I: Preliminary Target Industry Analysis 4

Phase II: Target Match (Strengths and Weaknesses) Analysis 8

Location Needs of the Preliminary Targets 9

Scottsbluff/Gering Area’s Strengths & Weaknesses 22

Phase III: Updated “Best Fit” Target Industries 41

Phase IV: Economic Development Recommendations 43

Appendix: Trade Shows and Certified Sites Intake Form Analysis 45

INTRODUCTION

The Scottsbluff City Council contracted with Thomas B. Miller and Foote Consulting

Group, LLC (FCG), global site selection and economic development firms, to complete

this economic development study for the Scottsbluff/Gering, Nebraska Area. One

objective of this multi-phased approach is to update the best target industry fits for the

Scottsbluff/Gering Area and to develop a strategy to help these targets locate and expand

here.

The analysis was carried out in a multi-phased approach, including:

1. Preliminary Target Industry Assessment

2. Target Match (Strengths And Weaknesses) Analysis

3. Selection of “Updated Best Fit” Targets and Why

4. Economic Development Recommendations

PHASE I: PRELIMINARY TARGET INDUSTRY ANALYSIS

Introduction

Targeting is well recognized as the best method of attracting economic development.

Scottsbluff/Gering have been utilizing State of Nebraska and Nebraska Public Power

District (NPPD) targets recently.

In 2010, Battelle Technology Partnership Practice recognized a number of targets for

Western Nebraska. Those that covered Scotts Bluff County included:

Ag Machinery

Business Management & Administrative Services

Financial Services

Health Services

Hospitality/Tourism

R&D Engineering Services

Software & Computer Services

These are generally fine, but are out of date and do not dig deep enough into what else is

possible. Our objective here is to refine and update the target industries.

We utilize a unique methodology designed to identify the best target industries. We

maintain a database of actual, major private sector site locations/expansions1. For this

analysis we looked at activity that occurred in 2013.

1 We use Conway Data information, which tracts major locations and expansions (At least $1 million in

capital investment, 50 new jobs or 20,000 square feet).

This database assists us in predicting growth trends and we utilize this data for selecting

the best initial communities for our site location clients. The methodology is sound and

proven for the following reasons:

Locations/expansions are driven by recent market conditions and these conditions

will generally continue into the near future.

Companies (and site selection consultants) select regions first and then communities

within these regions with the best business climates. This may mean, for example, a

good labor climate, good market proximity, good transportation, and the availability

of incentives; all positive business conditions. This will result in clustering, a

concentration of like companies due to favorable business conditions.

Clustering is a “green light” for other similar companies to take a look. But they will

only locate if the good business conditions remain. For example, they may find that

the labor market for select skills depleted due to too much location/expansion

activity. This is why we conduct careful fieldwork interviews with local companies

for our site location clients, in order to help them to thoroughly understand the local

business conditions.

This methodology is sound for economic development targeting. We will review and

analyze both regional growth cluster and sector projections in order to help you to

understand which existing (and future) businesses will grow. It will also set the stage for

the next portion of this assignment: understanding the needs of the most active, fastest

growing company types. Cluster data is excellent for target planning because:

It represents actual physical building activity (size and type of building).

It represents actual economic development (both capital investment and jobs).

Multi-State Regional Location/Expansion Activity (“Growth” Clusters)

FCG explored location/expansion trends in the Scottsbluff/Gering Area’s four-state

region (Nebraska,Colorado, South Dakota, and Wyoming).

We first screened location/expansion data in order to identify which industries (by

NAICS Code2) located/expanded the most facilities in a multi-state region during 2013.

We define these as “growth clusters”.

The following two graphs (on the following page) depict this information. The first one

shows general industry categories and the second shows individual industry sectors.

2 The North American Industry Classification System (NAICS) was formerly the Standard Industrial

Classification (SIC) system.

There were a dominate number of manufacturing projects.

Office/call centers/data centers had a good number of projects.

Warehouse/distribution (DC) project numbers were quite low.

The most active sector was Call/Data Centers/Software/IT, which includes many

technology, IT, data center, and office uses.

Warehouse/Distribution (DC) was the second most active overall, but numbers

were low due to slow retail sales and smaller regional populations. Interstate

access and rail service is critical to attract this sector.

Industrial Machinery and Transportation Equipment were prominent with strong

influence from agriculture and oil/gas/mining activity.

Food/Beverage was dominant and focused on the meat, dairy, and grain sectors.

Other active regional targets include: plastics, metals, chemicals, and

computer/electronics.

The trend will be toward more locations/expansions in these general categories and

industry sectors into the near term. They all, therefore, represent potential targets for the

Scottsbluff/Gering Area.

Major New Locations/Expansions in the Scottsbluff/Gering Multi-State Region” – 2013

Prominent sectors include: office (financial and data centers), food, machinery,

and metals.

Scottsbluff/Gering State Region – 2013 Major Locations/Expansions

State City Company Product Jobs SqFt Type

CO Fort Collins Woodward, Inc. Control products 600 944,000 Mfg

CO Aurora FedEx Package delivery 200,000 DC

CO Greenwood Village Fidelity Financial services 500 100,000 Office

NE Scottsbluff Future Food Energy Food 555 Mfg

NE Columbus Fab metals 150 Mfg

NE Grand Island JBS USA Meat processing 172 Mfg

CO Denver Ardent Mills Food 250 HQ

NE Grand Island CNH America Machinery 150 Mfg

CO Greenwood Village Cool Planet Energy Gas equipment 393 HQ

NE Omaha Nelnet, Inc. Lending 300 Office

NE Lincoln Perot Systems Lending 150 Office

CO Centennial Time Warner Data center 75 170,000 Office

NE Dakota City Tyson Foods Meat processing 200 Mfg

The Preliminary Targets

Based on the previous analysis where we looked at regional location/expansion activity,

we feel that the best preliminary targets for the Scottsbluff/Gering Area include (not by

priority):

• Food Processing/Agricultural Products/Crushing Plants

• Data Centers

• Oils/Gas/Mining Industrial Equipment

• Warehouse/Distribution (rail-related DCs)

• Industrial Machinery/Fab Metal Products/Metals recycling (especially ag and

oil/gas related)

• Plastics Products

• Electronics Assembly (includes solar fabrication—ingots to wafers)

• Call Centers (Higher-end tech support inbound call center).

Secondary Targets

• Medical

Retail (i.e. restaurants/hotels) should not be considered a primary target industry. Retail

will naturally follow the attraction of targets over time.

PHASE II: TARGET MATCH (Strengths and Weaknesses) ANALYSIS

Introduction

In corporate site selection, we analyze communities in order to determine if they possess

the attributes most important for our clients. Our objective in this phase of work is to:

1. Understand the general location needs of preliminary targets

2. Understand the strengths and weaknesses of the Scottsbluff/Gering Area

3. Match these strengths with the needs of the preliminary targets

4. Recognize the weaknesses of the community

Following this, we will:

5. Determine the “best fit” targets based on these factors and offer target profiles

(Phase III)

6. Develop the economic development recommendations designed to help

attract/expand the “best fit” targets (Phase IV).

The Location Needs of the Preliminary Targets

Introduction

First, we will provide pertinent background information on each preliminary target. This

includes a brief description and important trends. Next, based on our site selection

experience, we have listed the top site selection criteria for each target.

Trends & Criteria

Food Processing/Agricultural Products/Crushing Plants – NAICS: 311 & 312

Understanding the Sector

Food processing is a dominant sector in the west due to the direct access to an abundance

of raw food materials, (including corn; beef; beans; wheat; barley; chicken; and rapidly

growing organic products), and access to western consumer markets.

Companies in this industry manufacture and process a wide variety of foods, including

meat; seafood; dairy products; fruits and vegetables; milled grains and oilseeds; baked

goods; and candy. Major companies include U.S.-based Archer-Daniels-Midland (ADM);

ConAgra Foods; Frito-Lay; Kellogg; Kraft Foods; Mondelez International; and Tyson

Foods. International companies include, Grupo Bimbo (Mexico); Groupe Danone

(France); JBS (Brazil); Maruha Nichiro Holdings (Japan); Nestlé (Switzerland); and

Unilever (The Netherlands).

Trends include:

The consumer price index for food, an indicator of food product values, rose 1.9

percent in April 2014 compared to the same month in 2013.

U.S. nondurable goods manufacturers' shipments of food products, an indicator of

demand for food manufacturing, rose 4.9 percent year-to-date in March 2014

compared to the same period in 2013.

U.S. retail sales for food and beverage stores, a potential measure of food

demand, increased 2.8 percent in the first four months of 2014 compared to the

same period in 2013.

Total U.S. wholesale sales of nondurable goods, a potential measure of food

demand, rose 7.4 percent in March 2014 compared to the same month in 2013.

NAICS Codes

311224 Soybean and Other Oilseed Processing

311225 Fats and Oils Refining and Blending

311230 Breakfast Cereal Manufacturing

311313 Beet Sugar Manufacturing

Key Site Selection Needs for Food Processing (by priority)

1. Available labor skills

Key positions: machine operators (cutting, blending & PLC3); food

technicians; maintenance mechanics; and warehouse workers)

2. Labor costs

3. Access to markets & raw materials/transportation costs

4. Good water and sanitary sewer capacities

5. Electric power costs/reliability

6. Fully improved industrial sites/specialized FDA certified buildings (may require

rail service)

7. Incentives

Equipment tax exemptions (large capital investment)

Infrastructure

Training

8. Good highway access

9. Good labor/management relations.

Call/Data Centers/Software/IT – NAICS: 513, 514, 518, 522, 523, 534, 531, 541, and

561.


The call/data centers/software/IT is the largest regional sector comprised of a number of

office and technology functions. This sector encompasses a number of NAICS codes,

including: 513- broadcasting/telecommunications; 514-data services; 518-data centers;

522-credit services; 523-financial services; 534-insurance; 531-general office; 541-

professional services/software; and 561-call centers.

Call Centers

The sector continues to grow and has held up better than many other sectors during the

last recession because:

1. The sector crosses virtually all industry types (every business has administrative,

IT, and support components).

2. Companies continue to seek ways to reduce costs. They therefore either outsource

administrative functions to a third party provider, or find lower cost locations.

3 PLC – Programmable Logic Control

3. Software and related IT products continue good growth due to opportunities in

mobile devices, netbooks, and “wearable” technology.

4. Defense security systems such as cyber communications, UAV, and border-

related systems are growing.

However, as in the manufacturing sector, more and more of this sector’s jobs are moving

off-shore. Companies site lower costs, competitive pressures, and access to greater

numbers of qualified personnel as reasons for off-shoring. But, many off-shore

experiments have failed primarily due to poor customer service and some functions are

being returned to the U.S. (i.e. Dell has returned some functions from India).

The largest and fastest growing administrative back-office segment is call centers. There

has been rapid volume growth in this industry. Inbound minutes are increasing faster than

outbound minutes, even though outbound represents 60% of all calls.

Companies in this industry operate telephone call centers that provide telemarketing,

customer care, and other outsourced business services on a contract basis. Major

companies include Convergys, Sitel, and West (all based in the U.S.), as well as Infosys

(India) and Teleperformance (France).

NAICS Codes

Telephone Answering Services: 561421

Telemarketing Bureaus and Other Contact Centers: 561422

Trends include:

Total U.S. consumer spending, a driver of telemarketing sales, rose 1.1 percent,

primarily from services expenditures, in March 2014 compared to the same month

in 2013.

U.S. personal income, a measure of consumer ability to purchase goods and

services through telemarketing, rose 3.4 percent in March 2014 compared to the

same month in 2013.

Total U.S. revenue for other administrative and support services, which includes

telemarketing services, rose 0.5 percent in the fourth quarter of 2013 compared to

the previous year.

Because telemarketing is primarily tied to the sale of consumer products, demand

for services is sharply affected by economic cycles. Although employee levels can

easily be adjusted to demand, the high fixed costs of call centers are a problem if

demand declines. To maintain flexibility, companies may operate a larger number

of smaller call centers, or may share call center space with other users.

Generally, the call center industry is broken into three primary groups:

Outbound telemarketing centers consisting of outbound sales; insurance; fundraising;

polling; credit card acquisition; and related functions

Inbound call centers consisting of customer service; order fulfillment; insurance;

health care; credit card authorization; and the like

Technical support centers at the high end of the industry, and often called technical

help desks, offering computer software/hardware or financial support.

Key Site Selection Needs for Call Centers (by priority)

1. Labor availability

Key positions: customer service representatives (CSR), help desk reps,

telemarketers, and industry experts

2. Labor quality (turnover, absenteeism, etc.)

3. Labor costs

4. Telecommunications

5. Education/Training (and incentives)

6. Existing leased Class A/B buildings with ample parking and/or improved

commercial sites

7. IT tech support

8. Commercial air service

Good access to corporate headquarters/related

9. Corporate income tax

10. Electric power (reliability & cost).

Data Centers (and “Cloud” computing)

Data centers are one of the largest growing sub-segments of this sector due the huge data

demands for software, medical, and other industry providers. The development of data

centers is a growth area in the United States and globally. Most state-of-the-art data

centers are operating at capacity while demand is steadily growing. Data centers are not

large job producers, but the capital investment is substantial.

Demand is projected to outpace supply for the next 3-5 years and this in turn will cause

significant price increases in wholesale data center and co-location rates. Use of the

Internet is up 50 percent over the last five years.

A data center is a facility used to house computer systems and associated components,

such as telecommunications and storage systems. It generally includes redundant or

backup power supplies, redundant data communications connections, environmental

http://en.wikipedia.org/wiki/Computer

http://en.wikipedia.org/wiki/Telecommunication

http://en.wikipedia.org/wiki/Computer_data_storage

http://en.wikipedia.org/wiki/Power_supply

controls (e.g., air conditioning, fire suppression), and various security devices. Large data

centers are industrial scale operations using as much electricity as a small town and

sometimes are a significant source of air pollution in the form of diesel exhaust.

Data centers follow "Mission-Critical" criteria which means they are never “out.” The

data center term "Six 9's,” meaning power availability 99.9999% of the time, applies.

Cloud computing uses server virtualization to provide large, scalable, low-cost data

center solutions. Pricing is typically done on an as-needed basis which allows small firms

to utilize the service and provides an alternative for large firms that choose to outsource

their data.

U.S. operations consume a large percentage of the world's data center power. According

to Site Selection Magazine: “In 2005, total electricity consumption by American data

centers, including servers, cooling and auxiliary equipment, was approximately 45-billion

kilowatt hours – about 1.2 percent of all U.S. energy consumption. All told, American

data centers used about $2.7 billion worth of electricity in 2005. That was about 37

percent of all of the energy that the world's data centers used that year.”

Data center servers have grown from 2.6 million to 11.6 million over the past decade due

to increasing storage and security needs. Revenue has risen from $1.5 billion in 2006 to a

projected $3.2 billion in 2010. New construction for large data centers is currently

estimated at $5-$6 billion in 2010 and expected to double to $10-$12 billion by 2015.

NAICS Codes

Data centers: 518

Key Site Selection Needs for Data Centers (by priority)

Geographic diversity & disaster avoidance

a. Spreading risk from a multiple location standpoint and voiding natural

disasters

Electric power cost

State corporate income tax rates

State and local sales taxes

a. Could be levied on millions of dollars worth of servers purchased that are

replaced every three to five years

b. Low rates and/or abatement or rebate on sales taxes are important

Personal property taxes on equipment

Utility infrastructure

a. Electric power grid

http://en.wikipedia.org/wiki/Diesel_exhaust

b. Transmission fed power

c. Onsite substation

d. Fiber availability & bandwidth

e. Water for cooling

“Ready to go” sites

a. Acreage varies widely but a 25-acre minimum could allow proper security

buffer

b. Very large secure sites (100-acre plus) could accommodate mega centers

c. Mobile “black-boxes” have altered site requirements

Speed to occupancy and state/community readiness.

Oil/Gas/Mining Related (NAICS: 211, 332, 333, and related metals, equipment, product

distribution (i.e. coal and fracking sand)


Natural oil/gas mining through fracking technologies is booming in many parts of the

U.S., including planned increases in Colorado; Montana; New Mexico; North Dakota;

Oklahoma; Utah; and Wyoming, as well as in Canada. So much new supply of gas is

coming from shale formations that futures prices, which soared to almost $13 per

thousand cubic feet in 2008, dropped to little more than $2 in 2012 before rebounding to

about $3.50. Inexpensive gas/oil has given U.S. manufacturers a competitive edge over

foreign factories, helping to revive U.S. industry.

The average U.S. retail price for diesel and regular gas, which influences oil and gas

companies' ability to invest in new equipment, rose 1.9 percent and 1.8 percent,

respectively, in the week ending May 12, 2014—compared to the same week in 2013.

The spot price of crude oil, which affects investment activity in oil and gas drilling, rose

4.6 percent in the week ending May 9, 2014, compared to the same week in 2013.

U.S. oil production is expected to rise from 7.3 million barrels a day in 2010 to 10.3

million barrels a day in 2020. That should be enough to slash imports about two-thirds by

2035, making America less dependent on oil from the volatile Middle East.

Companies in this industry manufacture machinery and equipment used in oil and gas

exploration and production, as well as water well drilling machinery. Major companies

include Baker Hughes; Cameron International; National Oilwell Varco; Schlumberger;

and Weatherford International.

NAICS Codes

Oil and Gas Field Machinery and Equipment Manufacturing: 333132

http://www.eia.gov/dnav/ng/hist/rngc1M.htm

http://www.eia.gov/dnav/ng/hist/rngc1M.htm

Key Site Selection Needs (by priority) – Oil/Gas Pipe Supplier

1. Available labor – machining skills & quality

Key positions: machinist; maintenance mechanic; machine operators

(CNC); welders; and warehouse workers

2. Labor costs

3. Access to Western markets/transportation costs

4. Interstate highway access

5. Electric power (reliability & costs)

6. Improved sites and/or existing buildings

7. Rail access

8. Available training (and incentives)

9. Good access to suppliers

10. Good labor/management relations

Many projects also need intermodal sites (with rail). The best sites require:

1) Access to regional market commodities

2) Access to a railroad mainline or shortline connecting to a mainline

3) Physical ability/permission to spur off of the mainline with loop tracks

4) Good Interstate or 4-lane highway connections

5) Transloading equipment/infrastructure

6) Fully improved with utilities

7) Worst-case accidents or spills locations identified

8) “Certified,” if possible.

Warehouse/Distribution (DC)


The warehouse/distribution (“DC” for distribution center) sector has historically been one

of the fastest growing and largest in regards to new locations/expansions of any industry

sector nationally. The sector suffered during the recent recession as locations/expansions

where slowed by lower consumer demand for retail products. However, growth in online

or e-commerce retailing (i.e. Amazon) has spurred new activity for DCs over the last few

years.

The DC sector comprises a number of NAICS codes, including: 421 & 422-wholesale

distribution; 484-truck transportation; 488-transportation support; 492-couriers; and 493-

warehouse/distribution.

The following are some key points regarding the state of logistics industry which affect

DC projects today:

• Fuel prices, impacted from the demand-supply imbalance, will continue to drive

rates northward.

• On the international side, port congestion is a major problem, particularly the

West Coast ports of Long Beach and LA.

• There are dire predictions about:

Drastic driver shortages

Continued worry about the overall transportation infrastructure

Likely increase in security requirements, etc.

• With these challenging issues, there’s a growing desire to optimize the network of

distribution centers.

With these in mind, the following national DC trends are significant:

• Freight costs drive site selection decisions

Along with labor costs they are either first or second in importance.

Access to customers; very specific and detailed freight modeling is done

in order to optimize shipping costs and time.

Access to Interstate highways is often critically important.

• Projects are very fuel cost sensitive – optimizing shipping distance

• Regionalization is occurring – meaning the development of smaller boxes

serving regional markets versus massive boxes serving larger national market area

(speed to market, lower shipping costs).

• Many companies are rethinking of integrating rail – it will provide a cheaper

shipping alternative in the future; if all else is equal, the prospect will choose the

rail site over the non-rail site.

• Direct highway access is often important – “5 to 55” (5 minutes to reach 55

miles per hour for trucks) means immediate access to limited access Interstate and

major highways.

• Large flat sites are best – many searches will start with available buildings, but

most will end up with a build-to-suit since the buildings may not meet needed

specifications.

• DCs are attracted to port sites (i.e. Long Beach, Houston, and Charleston)

East Coast ports, with expansions to serve “Post Panamax” ships that can

pass through the expanded Panama Canal starting in 2014, will likely

grow faster in order to serve the larger population base in the East.

Competition between East Coast ports to capture this new traffic has been

intense, but in our opinion, the Port of Charleston has the inside tract as

the port of choice.

• DCs are attracted to intermodal (rail, truck, barge and/or air freight) sites (i.e.

Joliet, IL; Kansas City; and Alliance, TX)

• Retail tax issues are driving many siting decisions for online retail DCs.

• Every manufacturing project also has a warehousing component.

• There is a general lack of understanding of freight modeling in the economic

development community.

NAICS Codes

421; 422; 484; 488; 492; and 493

Key Site Selection Needs (by priority)

1. Access to market/transportation/freight costs

Access to intermodal freight terminals and ports growing in importance

2. Labor costs/availability

Key positions: material handlers, forklift drivers, and truck drivers

3. Electric power (costs/reliability)

4. Access to Interstate highways (“5 to 55” – ability to reach 55 miles per hour

within 5 minutes)

5. Large sites (50 to 250 acres) or large buildings (40,000-square-foot plus)

6. Rail service for select operations

7. Incentives

Infrastructure

Training

8. Good labor/management relations.

Electronics Assembly (including Solar Fabrication)


This is the industry involved with the development and application of electronic devices,

circuits and programmable machines that perform high-speed processing. This industry

has mushroomed out of the recession with the growth of solar; smart phones; tablets;

related “apps;” and defense-related cyber security.

Companies in this industry manufacture semiconductors and other electronic

components. Products include diodes; transistors; integrated circuits; silicon wafers; and

other solid-state and semiconductor components. Companies that make capacitors,

resistors, and transformers, as well as electron tubes (cathode ray tubes and vacuum

tubes), printed circuit assemblies, and connectors are also included in this industry.

NAICS Codes

Bare Printed Circuit Board Manufacturing: 334412

Semiconductor and Related Device Manufacturing: 334413

Capacitor, Resistor, Coil, Transformer, and Other Inductor Manufacturing:

334416

Related Industries:

Computer Peripheral Equipment Manufacturing

Contract Electronics Manufacturing

Electrical Products Manufacturing

Semiconductor Manufacturing

Key Site Selection Needs for Electronics Assembly (by priority)

Labor skill availability and

quality

Key positions:

assemblers; electronic

technicians; winders;

testers; maintenance

mechanics

High level security

clearances are a plus

Labor costs

Education/training with

incentives

Electric power

Supplier network

Overnight carriers (FedEx; UPS)

Proximity to markets/good

highway access

Fully improved industrial parks

Building costs

Corporate taxes.

Industrial Machinery/Fabricated Metals Products/ Metals Recycling


Industrial machinery is a diverse sector covering the manufacturing and assembly of

equipment used to aid and service other industrial sectors. Fab metals and metals

recycling equipment is often closely connected. Examples of active regional segments

include farm equipment; machinery; oil/gas equipment; wind power equipment; conveyor

equipment; guns; and sheet metal.

Companies in this industry transform purchased metals into intermediate or end-use

products by forging; stamping; bending; forming; welding; machining; and assembly.

Major companies include Ball Corporation; Flowserve; Mueller Industries; Snap-On; and

The Timken Company (all headquartered in the U.S.); as well as Jiangsu Guotai

International (China), Schaeffler Technologies (Germany), and Toyo Seikan Kaisha

(Japan). Because of the special manufacturing processes involved for individual parts,

most companies make a limited range of products.

Trends include:

U.S. durable goods manufacturers' shipments of fabricated metal parts, an

indicator of fabricated metal parts production, rose 1.6 percent year-to-date in

March 2014 compared to the same period in 2013.

U.S. steel mill product prices, an indicator of commodity steel costs for fabricated

metal products manufacturers, rose 2.2 percent in April 2014 compared to the

same month in 2013.

NAICS Codes

Iron and Steel Forging: 332111

Nonferrous Forging: 332112

Custom Roll Forming: 332114

Key Site Selection Needs (by priority)

Available labor – machining

skills & quality

o Key positions: machinist,

maintenance mechanic,

machine operator (CNC),

and warehouse workers

Labor costs

Access to Midwest

markets/transportation costs

Interstate highway access

Electric power (reliability &

costs)

Improved sites/existing buildings

(min. of 20,000 square feet)

Rail access

Available training (and

incentives)

Good access to suppliers

Good labor/management

relations

Recycling Materials and Metals


Companies in this industry engage in wholesale distribution of automotive scrap,

industrial scrap, and other recyclable materials. Major scrap metal wholesalers include

America Chung Nam, Commercial Metals Company, and The David J Joseph Company

(all based in the US), as well as ELG Haniel (Germany), European Metal Recycling (the

UK), and Sims Metal Management (Australia).

Scrap metals are the largest portion, but some companies handle paper, plastics, glass,

and other materials. The North American steel industry annually recycles millions of tons

of steel scrap from recycled cans, cars, appliances, construction materials, and other steel

products, according to Steel Recycling Institute (SRI).

Trends include:

Total U.S. durable goods manufacturers' shipments, a driver of scrap metal supply

from manufacturing waste, rose 3.4 percent year-to-date in March 2014 compared

to the same period in 2013.

Total U.S. revenue for waste management and remediation services, which

includes scrap metals and recycling services, rose 3.3 percent in the fourth quarter

of 2013 compared to the previous year.

U.S. steel mill product prices, an indicator for demand of scrap metal, rose 2.2

percent in April 2014 compared to the same month in 2013.

Total U.S. wholesale sales of durable goods, a potential measure of scrap metals

demand, rose 4.8 percent in March 2014 compared to the same month in 2013.

Trend: Electronic Scrap Grows Worldwide – Global electronic waste, or e-waste,

continues to grow with most of the increase in emerging markets, according to a United

Nations-sponsored report by the Solving the E-Waste Problem (Step) Initiative. The

current volume of e-waste is about 49 million tons. About half comes from the U.S., the

EU, Japan, and Australia. By 2017, global volume is expected to reach about 65 million

tons, with about 37 million tons coming from emerging markets. Volume is increasing in

economies with growing middle classes and increasing electronics consumption.

However, e-waste from developed nations is also shipped to less-developed regions for

recycling, often in unregulated and unsafe conditions, according to the Step report.

NAICS Codes

Recyclable Material Merchant Wholesalers: 423930

Plastics Related


Companies in this industry manufacture plastic bags and bottles; plastic film and sheets;

plastic pipe and foams; rubber hoses; and tires. Major companies include U.S.-based

Berry Plastics; Cooper Tire & Rubber; Goodyear; and Newell Rubbermaid, as well as

Amcor (Australia); Bridgestone (Japan); Michelin (France); Pirelli (Italy); and Reynolds

Group Holdings (New Zealand).

U.S. nondurable goods manufacturers' shipments of plastics and rubber products, an

indicator of plastic and rubber products production, rose 3 percent year-to-date in March

2014 compared to the same period in 2013.

The spot price of crude oil, a key raw material in plastic and rubber manufacturing, rose

4.6 percent in the week ending May 9, 2014, compared to the same week in 2013.

NAICS Codes

Plastics Bag and Pouch Manufacturing: 326111

Plastics Packaging Film and Sheet (including Laminated) Manufacturing: 326112

Un-laminated Plastics Film and Sheet (except Packaging) Manufacturing: 326113

Key Site Selection Needs for Plastics Products (by priority)

Labor costs and unskilled/semiskilled availability

Key positions: machine operators, maintenance mechanics, and warehouse

workers

Electric power (reliability and costs)

Fully improved sites and/or existing buildings (30,000-square-foot minimum)

Access to market/transportation costs

Customers often require JIT delivery

Rail service

Pellets are often brought in via hopper car

Incentives (training and offsets for large capital equipment costs)

Good labor/management relations.

Scottsbluff/Gering Area’s Key Economic Development Strengths & Weaknesses

Introduction

FCG examined key site selection criteria prevalent in all the preliminary targets as they

relate to Scottsbluff/Gering Area. Each is rated from poor to excellent. Criteria include:

Transportation/Logistics

Labor Costs

Labor Availability & Quality

Industrial Sites

Key Services (i.e. utilities, education/training, medical, etc)

Quality of Life/Cost of Living

The analysis included fieldwork interviews with company, training/education, and

development officials. We benchmarked Scottsbluff/Gering Area against several

competitor and source4 cities for select criteria:

Denver, CO

Cheyenne, WY

Sidney, NE

Hays, KS

Transportation/Logistics___________________________ Below Average

The ability of a company to receive and deliver goods economically is often a

determining site selection factor. Scottsbluff/Gering Area fails to deliver on key factors

from a transportation/logistics standpoint:

50 miles from I-80 Interstate highway access

Limited industrial sites and none “certified”

Dual rail potential with BNSF and UP Class 1 mainline railroads, but few “ready to

go” sites

Adequate air carrier service (i.e. UPS/FedEx)

Very poor commercial air service

Key Conclusion: Scottsbluff/Gering Area has limited potential from a

transportation/logistics viewpoint to serve western regional markets because of the

distance to I-80.

4 Large metro areas where target company headquarters may be located.

Labor Costs________________________________________________Excellent

Wage rates and salaries are the single most important labor factor both affecting the

availability of good quality workers in a marketplace and affecting a company’s

competitive position. Up to 80% of the annual operating costs of a project can be labor.

Select salaries follow utilizing salary data from our Economics Research Institute (ERI)

database, 1st Quarter 2014. Wages are for workers with one-year experience, median

without benefits.

Scottsbluff/Gering Area manufacturing salaries are lower than those in all other

comparison communities, with one exception. CNC Operator in Sydney is slightly

less.

Scottsbluff/Gering Area call center/tech support salaries are lower than those in

all other comparison communities, with one exception. Customer Service

Representative (CSR) in Sydney is slightly less.

Scottsbluff/Gering Area salaries are lower than those in all other comparison

communities, with two exceptions. Warehouse Laborer in Sydney and Hays are

slightly less.

Key Conclusions: Scottsbluff/Gering Area is the overall low cost wage/salary area. By

locating here target employers would save:

0.4% over Sidney

7.7% over Cheyenne

24.8% over Denver

0.7% over Hays

Labor Availability_______________________________ ___Below Average-Excellent

The ability to attract the right skills is critical to the success of a project. We use the FCG

Availability Index, which measures labor availability on a one to ten point scale (1 = very

poor; 5 = average; and 10 = excellent). We use the same index in all of our labor market

analysis nation-wide and this gives a true “apples-to-apples” comparison of different

communities. Generally, scores of 0 to 3 are “poor;” 3 to 4 are “below average;” 4 to 6

are “average;” 6 to 7 are “above average;” 7 to 8 are “good;” 8 to 9 are “very good;” and

9 to 10 are “excellent.”

Based on 17 company interviews, the following chart depicts labor availability:

The availability of skilled workers is rated “below average,” especially those with

experience, such as:

o nurses

o welders

o machine operators (CNC)

o truck drivers (CDLs)

o lenders

o IT workers

o maintenance mechanics

o truck mechanics

o sanitation/wastewater

o electricians

o public accountants

o ultrasound technician

(hospital)

o rehab technician

(hospital)

Semiskilled, unskilled, and clerical availability is “above average to “very good.”

o Customer Service Representations are rated “very good.”

o There is some need for more agricultural workers.

Management availability is rated slightly “above average.”

Quotes

“Can’t find 20 machine operators now.”

“Don’t want more large employers here…pushes up wages.”

“Older workers have more mechanical skills…there is a generation gap…the

young folks don’t have it.”

“Outsiders not welcome, tough to recruit new talent…”

“We are having a very tough time filling management jobs.”

“We need 15-20 skilled folks right now…poor availability.”

“Young professionals will be very hard to find and recruit; reaching out for

marketing and logistics managers.”

Key Conclusions: Based on the recent fieldwork, in the Scottsbluff/Gering Area:

Overall labor availability is rated above average (6.42).

There is “below average” availability of manufacturing skilled positions, such as

CNC machinists, welders, truck drivers and maintenance workers.

There is “good” availability of unskilled and clerical workers across the board.

Customer Service Representative (CSR) availability is “excellent.”

Recruitment of some management talent will be a challenge.

26

Labor Quality_______________________________________Above Average-Excellent

The ability to find quality workers will be critical to the success of any target company

project. Through interviews with the local employers we were able to determine current

labor quality in the Scottsbluff/Gering Area market.

We use the FCG Quality Index, which measures labor quality the same way we measure

labor availability, as described on Page 25.

Characteristics include:

Turnover

Absenteeism

Attitudes – on-the-job

Trainability – employees response to training

Basic skills – math, English, grammar, blue print reading, etc. of applicants

Communications – Employer/employee and employee/employee on-the-job

Alcohol/drugs – Perceived situation

Productivity – Employer’s measure.

The following are the labor quality ratings:

27

Quotes

“Do your homework and the number and kind of people you need.”

“Know your employee needs; study to see that skills are here.”

“Might be white collar here…not production folks.”

“Our productivity is “spotty”…need smarter work, not harder work.”

“Understand culture and people before you come in and learn about the

community.”

“We offer 3X redundancy for telecommunications…one of only 2% of cities in

the U.S. that offers fiber to all homes.”

“Workers will fight for overtime pay (OT) pay…they won’t work weekends;

want to fish and drink beer.”

“You will pay less here.”

“Young workers are too dependent on computers and not as motivated by

money.”

Key Conclusions: Companies will be pleased with the labor quality in the

Scottsbluff/Gering Area.

Overall labor quality is rated good (7.40).

All sectors, including basic skills which in many markets is average or below, are

rated above average to very good.

Industrial Sites Poor-Average

Good products (sites and buildings) must be available in order to attract economic

development. Two, out of three, site searches begins with a building search. However, the

majority of lookers still end up constructing a building since it turns out that the existing

spaces don’t work.

The Scottsbluff/Gering Region has a number of existing and potential industrial sites

available and most need some improvements. We toured potential sites during our first

visit and did a detailed inspection/analysis on another visit.

One of the hottest trends in site selection today is the identification of “certified or shovel

ready” sites and buildings. Certified or shovel ready means that the site/building has

passed a rigorous professional site selector inspection and analysis and is deemed “ready

to go.” Certified sites” are the best available or the “cream of the crop” and often are the

first products requested/shown in a site selection. Criteria for certified sites include:

Acreage (10 acres; minimum levels)

All utilities at the site or a formal plan to extend to the site

Asking price from a willing seller

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Certification by a professional site selection firm

Minimized risk factors for development

No environmental liabilities

Outside known flood-prone areas

Permitting process, timeline, and fees

Property boundary survey and topographic maps completed

Report of comprehensive site information from a site selector’s viewpoint

Truck quality road access

Zoning in place or an expedited rezoning plan.

FCG has identified the seven top sites (three in Scottsbluff and four in Gering), and

carried out an initial “certified-site-type” review from a site selector’s viewpoint (see

details in the Appendix). During this analysis we carried out an “intake form”

assessment, determining the best sites that should next be “certified.” This assessment

only briefly looks at each site, but does not look in detail at such areas as flood plain

review. This will come later in the “certified” analysis.

Speculative (“Spec”) buildings may be a good fit for your community. Remember that

existing buildings will draw more prospects to town since about 80% of all site selection

searches begin with building searches. But less than half find the building that they want,

and they end up buying a site.

The best sites are (maps and Intake Forms are available in the Appendix):

Scottsbluff

1. Scottsbluff City Site (43 acres; city-owned)*

2. 42nd Street Data Center Site (200-300 acres)

3. Nationstar East Site (40-50 acres)*

Gering

4. Gering Hill East Site (land fill site; 225 acres; city-optioned)

5. Sugar Factory Sites (80-200 acres)

6. Shane Site (13 acres)*

7. Expressway Site (140 acres)

Closest to Certified Site Status (“ready to develop”)*

Scottsbluff/Gering is in need of developable sites with rail access. Many industrial and

warehouse/distribution companies will require rail for inbound and some outbound

service, including potential targets: food/agriculture; oil/gas/mining equipment; industrial

machinery/fab metals and plastics.

29

Key Conclusions: Scottsbluff/Gering has a number of attractive industrial sites that, with

some work, will attract new industrial development. The key will be to get them improved

and one good step is to put them through a Certified Sites Analysis.

Incentives_____________________________________ _____________ Good

Economic development incentives are the deal closers when all other key factors are

equal. Incentives are usually not a top location criteria; however, they are critical when a

company is down to a few finalist communities and everything else is equal. They are

often the “hidden” criteria, or the tie breaker.

Each state/community has a number of attractive programs used regularly for new

locations/expansions:

Nebraska

The Nebraska Advantage Package includes Nebraska’s comprehensive economic

development incentives that meet the needs of your expanding or relocating business. It is

Nebraska’s comprehensive economic development incentives that meet the needs of your

expanding or relocating business. During the 2012 Legislative session, additional

legislation was passed which further enhanced this competitive incentives package. The

Nebraska Advantage Act, multi-tiered benefits, have a six-tier program including:

Tier 4 – $12 million new investment and 100 new jobs: In addition to the sales tax

refund, jobs credit, and the investment credit; qualifying businesses under this tier

receive a personal property tax exemption on turbine-powered aircraft, personal

computer systems, agricultural product processing machinery, and personal

property used in a distribution facility for up to 10 years.

LB840 and TIF are great incentives; since 1995, $2.5 million was released

($5,000 per employee), funded by city sales tax (55 communities in Nebraska).

Incentive laws designed to benefit companies that decide to build large data

centers in the state. One provides tax incentives for data center projects

companies invest at least $200 million. These are sales- and use-tax refunds,

property tax exemptions, and refunds on IT hardware and software purchases.

Additional incentives are discussed in the following section focused on taxes.

Kansas

Promoting Employment Across Kansas (PEAK) Program: returns 95% of

withholding tax to the company as a credit if company meets the median wage of

the county for 5-10 years

Training: give $400 per new employee

Property Tax Credit: 10% of capital investment

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Sales Tax Rebate

Personnel Property Tax Exemption

No Corporate Income Tax: for corporate headquarters moving to KS

Hays offers tax abatements, TIFs, and IRBs (which allows a sales tax exemption).

Colorado

The State offers very few cash incentives before a location is announced. The most used

include:

Customized Job Training: $800 per job

Strategic Fund Program: for high tech jobs; $2000-$5000 per job

Advanced Manufacturing Fund: $3-$4 million grant fund for expanding

manufacturers

Enterprise Zone (EZ): Covers most of the state and offers property tax abatement

and up to 10 tax credits

Aviation Development Zone Tax Credit: special tax credits on products brought

back into Colorado for assembly.

Some local communities offer special incentives, such as the Loveland cash fund (up to

$250,000 per project).

Wyoming

Due to the existing corporate tax structure, Wyoming offers fewer incentives than other

states.

Business Community Ready Community Program: The BRC funds seven types of

projects

WyoRECs Renewable Energy Credit Discount Program

Community Development Block Grant (CDBG) Program

Wyoming Partnership Challenge Loan Program.

Incentives Conclusion

We feel today the most important incentives are (in order of priority):

1. Training related – with flexibility

2. Tax credits tied to job creation

3. Site infrastructure assistance

4. Property tax relief

5. Building/site financing

6. Project financing

31

Key Conclusions: The Scottsbluff/Gering Area should be able to compete effectively with

the state and local incentives available.

Taxes _________________________________________________ _____Excellent

Even though taxes are generally a relatively minor portion of the annual operating costs

for a project (generally 10% to 15%), they are typically compared in a site selection

project. The report from the Tax Foundation and KPMG, Location Matters, was released

in 2012.

The report’s study accounts for all business taxes: corporate income taxes; property taxes;

sales taxes; unemployment insurance taxes; capital stock taxes; inventory taxes; and

gross receipts taxes by state. It compares overall taxes for select new and mature project

types: Headquarters; Research & Development (R&D); Call Center; Distribution Center;

Capital-Intensive Manufacturing (such as a steel plant); and Labor-Intensive

Manufacturing (such as a truck plant).

The results allow site selection experts to screen states more accurately and quickly for

consideration by their clients. We used this for making tax comparisons for a new

location (as opposed to a mature expansion) in Nebraska, Colorado, Kansas, and

Wyoming.

Overall Rank of all 50 States for New Firms

Nebraska – 1

Colorado – 47

Kansas – 48

Wyoming – 9

New Corporate Headquarters

Nebraska – 1

Colorado – 34

Kansas – 42

Wyoming – 11

New Research & Development (R&D)

Operation

Nebraska – 2

Colorado – 40

Kansas – 49

Wyoming – 16

New Call Center

Nebraska – 1

Colorado – 34

Kansas – 47

Wyoming – 15

New Distribution Center

Nebraska – 22

Colorado – 40

Kansas – 50

Wyoming – 5

New Capital-Intensive Manufacturer

(Steel)

Nebraska – 2

Colorado – 45

Kansas – 37

Wyoming – 23

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New Labor-Intensive Manufacturer

(Trucks)

Nebraska – 2

Colorado – 47

Kansas – 33

Wyoming – 12

According to the study, Nebraska ranks first for both new corporate headquarters and for

new call centers. The state also ranks second for both new capital-intensive and new

labor-intensive manufacturing. Tax incentives are the major contributing factor to the

strong showing for all of these firm types. For example, the corporate headquarters and

the call center benefit from some of the most generous investment tax credits and job tax

credits in the nation. Similarly, only three states offer a more generous investment tax

credit for capital-intensive manufacturers. The property tax abatement for manufacturers

is also very generous.

Key Conclusions: Nebraska rated first or second in all explored categories, except for a

new distribution center. Colorado rated poorly (below 34) for all categories. Kansas was

also poor (below 33 and one at 50). Wyoming rated in the top 20 for all categories except

for a new capital-intensive manufacturer.

Electric Power_____________________________________________ ___Excellent

Electric power costs and reliability are critical site selection factors in almost all projects.

Nebraska Public Power District (NPPD) serving Scottsbluff now offers one of the

lowest costs in the country. Approved new rate for qualified businesses: $.0029-

$.0036 per KwH; threshold is one megawatt with a 60% load factor.

Power is redundant, plentiful, reliable and affordable. Recourse mix is diverse

and includes renewable and green energy options.

The cities of Gering and Sidney have municipal power systems (“munies”) and

have slightly higher rates.

33

Telecommunications____________________________ _____ ________Excellent

The 100% fiber optic network ranks Scottsbluff/Gering Area in the top 5% of the ”most

wired” areas of the country, and includes a 750-mile cable connecting to Denver and

national research networks. This superior infrastructure means that businesses will not be

limited by reduced connectivity options.

Education_______________________ _______ Average-Good (Needs Improvements)

Today’s students are tomorrow’s workforce. Prospects are therefore most concerned

about higher education and the flow of skills into the work place. Longer term, they are

concerned with the quality of the secondary schools. We interviewed (and in some cases

toured) several educational officials.

Secondary Schools

The local secondary school system has connections with Western Nebraska Community

College (WNCC). Here are the strengths and weaknesses that we uncovered:

Strengths

Highly committed staff to career academy programs

Nebraska is known for its excellent school programs, commitment, and leadership

in education

Drop out levels are low; commitment to graduation high. 80% graduation rate in

Scottsbluff and approximately 90% in Gering

Lots of energy and participation for dual credit programs

Career Advisory Council soft skills certificate is the right idea

Weaknesses

Hardly any connection or communication with major private sector leaders and

economic development (no business education consortium or roundtable)

No deep understanding of private sector needs except in a few cases

Lack of infrastructure, old buildings at high school, difficult to implement career

academy programs

Scottsbluff ACT scores for composites averaged 18.9 for the district; Gering 18.8

and 21.5 for the state

Lack of commitment to IT careers and training (may be an early age problem);

low computer: student ratio

Scottsbluff’s agriculture program limited and handcuffed with space; does some

welding but machining and metal fabrication is almost non-existent

34

Cultural support for education and careers, especially blue collar, is traditionally

low.

Higher Education

Western Nebraska Community College (WNCC) offers programs to assist businesses.

Here are the strengths and weaknesses that we uncovered:

Strengths:

Good organization in strong Midwest Community College system

Apparently strong customized job training programs with the private sector on a

contract basis

Strong dual credit programs with area high schools

The Business and Community Education (BCE) division was established to

develop skills for the workplace, individuals, and employers through education

with no boundaries in response to community and economic needs.

The Corporate Academy Associate of Occupational Studies (AOS) degree is

customized to meet the needs of a specified corporation wishing to pursue higher

education and professional development for its employees.

The John N. Harms Advanced Technology Center of Nebraska (HATC) was

established to develop skills for the workplace, individuals, and employers

through education with no boundaries in response to community and economic

needs.

Weaknesses:

No collaboration between target industries and career development and

curriculum

No metal fabrication/machining programs

Little emphasis on information technology programs, CISCO Academies,

Microsoft certification, etc.

Key Conclusions: The secondary schools and community college programs appear good,

but there is a need for better education/business connections in the training of skilled

positions needed by target industries and related careers, such as metal

fabrication/machining, etc.

35

Quality of Life/Cost of Living/Community Services____ ________ Poor to Excellent

Quality of life aspects of a community (cost of living5, medical services, recreation,

shopping, culture and community services) are all important in hiring, relocating, and

retaining employees. If managers refuse to take the move, the new project could be in

jeopardy.

From our cost of living data base we learned:

The Scottsbluff/Gering cost of living is below the national average and the second

lowest of all comparison areas.

Scottsbluff/Gering executive home prices are the second lowest of all comparison

locations.

5 All data comes from our ERI Relocation Assessor database. Cost of living items include: consumables,

transportation, health services, housing/utilities/property taxes and miscellaneous items.

36

Based on community interviews, we learned the following:

All items were rated “good” to “excellent”

Telecommunications were also rated “excellent” due to high concentration of

fiber in the community

37

Only air service was rated “poor,” since the Great Lakes local service is limited

and the service is poor.

All other items were listed as “above average” to “very good.”

Quotes

“Friendliness and patience here…marvelous people!”

“Getting permits was easy…2 weeks…little bureaucracy.”

“Good broad band.”

“Good electric power…low cost!”

“Happy to live here!”

“Need consolidated schools.”

“Need to consolidate police and fire.”

“Region has good family values, low crime rate, and good work ethic.”

“Understand culture and people before you come in and learn about the

community.”

Key Conclusions: Many aspects of quality of life generally rate well due to

Scottsbluff/Gering Area’s low cost of living and community services. However, the area

falls short in a few areas, including commercial air service.

38

Scottsbluff/Gering Area’s Strengths & Weaknesses Vs. Preliminary Target Needs

We next assessed Scottsbluff/Gering Area’s strengths and weaknesses against the

preliminary target location needs.

Scottsbluff/Gering Area Strengths Scottsbluff/Gering Area Weaknesses

Oil/Gas/Mining Equipment & Service

Market access to shale plays in ND, CO, & WY

Labor availability for unskilled

Labor costs & quality

Electric power

Incentives

Taxes

Access to suppliers

Labor/management relations

Regional locations

Skilled labor

Certified sites with rail

Specialized training programs

Electronics Assembly

Labor availability - unskilled

Labor quality

Labor costs

Existing building/ office sites

Incentives

Taxes

Electric power

Overnight carriers (FedEx; UPS)

Proximity to markets

Regional locations

Data Centers

Geographic diversity & disaster avoidance

Electric power cost

State corporate income tax rates (with incentives)

Sales taxes (with incentives)

Personal property taxes (with incentives)

Utility infrastructure including good fiber

Regional locations

Some skilled/management availability

Certified sites


Supplier network

Certified sites

Poor State assistance

39


Plastics Products

Access to market/transportation costs

Labor costs

Unskilled/semiskilled availability

Electric power

Future container transload capability

Incentives (training and offsets for large capital

equipment costs)

Taxes


Regional locations

Industrial Machinery/Fab Metals/Recycling

Market access

Unskilled labor availability

Labor quality

Labor costs

Electric power

Incentives

Taxes

Access to suppliers


Regional locations

Warehouse/Distribution (DC)

Market access to West

Labor costs

Unskilled labor availability

Electric power cost & reliability

Labor quality

Incentives (training)

No inventory tax


Regional locations

Food Processing/Agricultural/Crushing Plants

Market access

Labor costs & quality

Unskilled labor

Electric power cost/reliability

Excess water/sewer capacities

Regional locations

Incentives

Taxes

Skilled labor


Existing buildings

No direct I-80 access

Skilled labor



No direct access (50 miles) to I-80


Freight costs to large consumer markets


Skilled labor

40


High End Tech Support Call Centers

CSR labor – base labor that can move up

Labor quality

Labor costs

Telecommunications

Class A office building

Incentives/training

Taxes

IT tech support

Electric power costs/reliability

Regional locations

PHASE III: UPDATED “BEST FIT” TARGET INDUSTRIES

We identified the “best fit” targets for the Scottsbluff/Gering Area (by priority) based on

the Phase II analysis:

Data Centers (NAICS: 518, including 518210)

Food/Agricultural/Crushing Plants (NAICS: 311, including 311991; 311422;

311612; 311999; & 312)

Oil/Gas/Mining Equipment (NAICS: 211& 332, including 332911; 333,

including 333132; 333249; 333999; and related metals, equipment, product

distribution—i.e. coal and fracking sand)

Industrial Machinery/Fab Metals/Recycling Plants (NAICS: 332, including

332111, 332112, & 332114; 333, including 333111, 333249, & 333514)

Plastics Products (NAICS 326, including 326111; 326112; 326113; 326122; &

326119)

Call Centers – Higher-end tech support inbound (NAICS: 561, including

561421 & 561422; 519, including 519130; 522, including 522291; & 541,

including 541191)

Why the “Best Fit” Targets Work

Data Centers

Outstanding and improved electric power costs push this to the top of the list

Good potential site in the future

Good specialized state incentives promote this target

o Potentially poor administration service from State officials

Commercial air service

41

Lower tax potential

Outstanding fiber availability & bandwidth.

Food/Agricultural/Crushing Plants

Manufacturing at future rail sites

Good labor availability, but some skilled labor concerns

Need for low cost and reliable electric power

Water and wastewater excess capacities available

A need for more specialized technical training.

Oil/Gas/Mining Equipment & Services

An opportunity to serve the shale gas/oil play and mining regions of Colorado ,

Montana, North Dakota, and Wyoming and could provide transportation savings

for serving more than one region

Strong potential subsectors:

o Pipe

o Frack sand

o Mining/industrial equipment

o Chemicals

o Trucking/hauling



Good sites with rail possible in the future


Industrial Machinery/Metal Fabrication/Recycling

Good potential for many types of manufacturing operations, particularly tied to

agriculture, mining/drilling, and possibly renewable wind energy related

manufacturing (nacelle units: gearbox, generator, and transformer components &

blade assembly)

Recycling needs are growing


Good sites with rail possible in the future



42

Plastics Products

Good availability of unskilled workers


Potential sites with rail for transport of plastic pellets, but no I-80 direct access.

Call Centers

Class A Nationstar Mortgage building is excellent and has an outstanding skilled

worker base

40-50 acres next door offers unique expansion opportunities

A specialized real estate and marketing plan would get tenants in place.

PHASE IV: ECONOMIC DEVELOPMENT RECOMMENDATIONS

The following are designed as general guidelines to approach target marketing.

Marketing Related

Aggressively pursue the top “best fit” targets – This will include tools and

programs found here.

Work now to market the Nationstar Building – This Class A office facility

offers an outstanding opportunity for a customer service operation, especially

mortgage services. Good skilled labor is currently available and you don’t want to

lose them to relocation or other companies.

Develop research materials on the targets - Obtain consultant assistance where

needed here.

o Lead Lists

o Cost Comparison Reports – provide detailed cost comparisons of

Scottsbluff/Gering versus select competitors for each target industry based on

a hypothetical target project

o Freight/logistics modeling – to help determine your competitive position in

regards to manufacturing freight costs and to provide good marketing

materials

o Conduct more in-depth workforce analysis

Resident survey to pin-point education levels, skills and commuting

patterns

More extensive employer interviews to determine availability quality

and costs

Work to analyze and improve target technical training needs.

43

Conduct Prospecting Missions – Obtain consultant assistance here.

o Denver (minimum of twice a year)

o Cheyenne (minimum of twice a year)

o Dallas

o Chicago

o Des Moines

Attend Select Trade Shows – possible opportunities are listed in the Appendix

Partner with the Nebraska Department of Economic Development and

Nebraska Public Power District (NPPD) on trip opportunities. Also regularly

attend International Asset Management Council (IAMC) and CORENET

Certify seven industrial sites (3 in Scottsbluff and 4 in Gering). A professional

site selector led certified sites process will assure improved industrial site

availability. Prospects and site selectors seek certified sites to ensure availability,

ready status (all permits in place), and speed to market; all which save time and

money. In a future contract, we will take these “intake form” assessed best sites

and officially certify them for you.

Conduct a “Spec” building analysis/plan. This analysis will be tied to the

site/building needs of your targets and will focus on their need for “spec”

buildings. Generally, we recommend an industrial building with:

40,000 to 60,000 square feet

10% office

28’ to 32’ ceiling heights

1-2 dock doors; one overhead door

Fully sprinkled

In an industrial park setting

Our Team is available to assist with these recommendations.

44

APPENDIX

Potential Target Industry Trade Shows (In Cooperation with NPPD)

IPPE 2015 – International Production & Processing Expo

The IPPE 2015 – International Production & Processing Expo will be held in United

States in January 2015 (Not Final). The show consists of 3 co-located events:

Feed Expo

Poultry Expo

Meat Expo

The Expo is dedicated to the entire poultry market and is a source for funding the U.S.

Poultry & Egg Association. The event covers topics, products and services relevant to the

processors and producers of turkeys, broilers, eggs, ducks, breeding stock, and allied

companies.

The Expo is dedicated to the legislative, business, and regulatory interests of the animal

feed industry, including nutrition, food safety, and the environment and contributes

through the American Feed Industry Association to the production of healthy, wholesome

milk, meat, eggs, and fish.

The Expo is sponsored by the American Meat Institute and dedicated to the equipment

and supplies for processing and packaging red meat products.

The Expo brings together poultry, meat, and feed industry purchasing decision makers

http://www.ippexpo.org/

International Plastics Showcase: March 23-27th Orlando, FL

The world’s largest plastics trade show and conference of the year—brings together all

sectors of the supply chain to include end markets and brand owners. Featuring industry-

focused education, showcasing equipment and material suppliers, emerging technologies,

and running equipment for every phase of plastics processing.

Every sector of the industry is represented with 2,000 suppliers, and the full range of

technology solutions for every phase of plastics processing: machinery, chemicals and

additives; resins and compounds, design engineering systems; software; molds and dies;

tools; and more.

http://www.ippexpo.org/

http://www.npe.org/general-information/education

http://www.npe.org/general-information/education

http://npe15.mapyourshow.com/5_0/exhibitor_results.cfm?type=alpha&alpha=@

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FAB Tech November 11-13, 2014 Atlanta

FABTECH is in Atlanta, GA November 11-13, 2014 bringing together an anticipated

27,000 attendees and 1,400 exhibiting companies all under one roof. North America’s

largest metal forming, fabricating, welding and finishing event will be held at the Georgia

World Congress Center.

Featured Technologies:

Arc Welding, Assembly, Bending & Forming, Brazing & Soldering, Business Services,

Coil Processing Cutting, Fastening & Joining, Finishing/Paint & Powder Coating,

Finishing/Plating, Gases & Gas Equipment, Hydroforming, Inspection & Testing, Job

Shop/Contract Mfg., Lasers, Lubrication Maintenance & Repair, Material Handling,

Metal Suppliers, Plate & Structural Fabricating, Press Brakes Punching, Resistance

Welding, Robotics, Roll Forming, Safety & Environmental, Saws, Software, Machine

Controls, Stamping, Thermal Spraying, Tool & Die, Tooling, Tube & Pipe Fabricating or

Welding, Tube & Pipe Producing, Waterjet, Welding Consumables, Welding Machines.

AFCOM (for Data Center Professionals)

The data center environment is constantly changing, making it difficult to stay abreast

with the latest information and technology. AFCOM offers data center and facilities

management professionals the best practices, insights, tools and resources to successfully

manage today’s data center infrastructure.

According to the 2014 State of the Industry Survey, the demand for ongoing education

and networking among data center and facilities managers is greater than ever before. In

response to the community, AFCOM is launching 6 regional Symposium in 2014 to

provide ongoing, vendor-neutral education, networking, and access to the latest

technology and service providers. These that are in the Fall:

http://www.afcom.com/events/afcomsymposium-denver-2014/

http://www.afcom.com/events/afcomsymposium-columbus-2014/

Contact Center Expo & Conference May 4-7, 2015 | Orlando, FL

Formerly referred to as ACCE, this event has a reputation as being THE annual global

gathering for the contact center industry. Contact Center Expo and Conference includes

four full days of workshops, site tours, case studies, panels, and discussions on a

comprehensive selection of contact center-specific topics, all taught by leading industry

experts. You’ll also find valuable networking opportunities, inspiring keynote speakers,

and the latest technologies and services from top industry vendors in the expo hall.

http://www.afcom.com/events/afcomsymposium-denver-2014/

http://www.afcom.com/events/afcomsymposium-columbus-2014/

46

Certified Sites Analysis

“Intake Forms”

Introduction

Providing a completed intake form is the first step in qualifying for site certification.

Attached are the forms and all of the sites below appear to be in good shape for

certification.

Site Name: Scottsbluff City Site

Location (City): Scottsbluff, NE (US Highway 26 & County Road (CR) 92 Expressway)

Please mark the appropriate boxes.

10 or more developable acres? Yes X No _

43 acres

47

Willing seller with set asking price? Yes X No _

$20,000 per acre

Proven alignment with a local city, town, or county? Yes X No _

City-owned

Dedicated access? Yes X No _

Adjacent to 4 lane Expressway

US 26 with access road; SR 92; County Road (CR) 24

BNSF rail spur; must secure right to utilize; good potential of rail extension onto

site

All utilities at site (water, sewer, electric power, telecommunication)? Yes X No _

If all utilities are not at site, can a "Will Serve” letter to extend utilities to the site be

provided? Yes _ No _

Letter of commitment from local government, county, or economic development group?

Yes X No _

Do any environmental issues exist? Yes _ No X

Are you in the process of documenting/remediating environmental factors with proper

organizations? (e.g. Phase I ESA; Clean Water Act; 100-year assured water supply;

endangered species reviews; geotechnical report; air quality designation) Yes X No _

Have topography maps on site.

Has been used for farming, so no previous industry has been located on the site

Is site outside known flood-prone areas? Yes X No _

Building site will have to be raised out of floodplain - 0 to 18” (varies)

Industrial/office (no retail) zoning or expedited rezoning plan in place? Yes X No _

Authorized Representative Contact Information

Name: Rawnda Pierce

Title/Organization: Executive Director, Twin-Cities Development Assoc.

Address: 1620 Broadway, Scottsbluff, NE 69361

Phone: 308-632-2833

Email: [email protected]

48

Site Name: 42nd Street Data Center Site

Location (City): Scottsbluff, NE (by the cemetery off 5th Street and 42nd Street)



200-300 acres

Willing seller with set asking price? Yes __ No X



On County Road H (4th Ave); near County Road 21


Sizable power near site; sewer and dark fiber near; City water tower and water

service on west side; City sewer and water run along 42nd Street, but not on the

site.

49


provided? Yes X No _


Yes X No _




endangered species reviews; geotechnical report; air quality designation) Yes _ No X


Industrial/office (no retail) zoning or expedited rezoning plan in place? Yes __ No X


Name: Rawnda Pierce



Phone: 308-632-2833


Site Name: Nationstar East Site

Location (City): Scottsbluff, NE (Highway 26; 27th street and 21st street.)

50



30 acres below ditch

30 acres above ditch

Willing seller with set asking price? Yes __ No X

Family will discuss price and what they want to sell.

Willie Quindt is family representative: 308-631-8937



Hwy 26

51





Yes _ No _








Name: Rawnda Pierce



Phone: 308-632-2833


Site Name: Gering Hill East Site

52

Location (City): Gering, NE (US 92 Scenic, CR 25 & CR 24)



225 acres

Union Pacific rail on south side; no agreement on spurs; no engineering


City of Gering maintains an option

Price is unknown




53

US 92 (scenic) on south; CR 24 on west

Union Pacific (UP) rail line to the south

All utilities at site (water, sewer, electric power, telecommunication)? Yes _ No X

Electric power

All others must be extended




Yes X No _









Name: Rawnda Pierce



Phone: 308-632-2833


Site Name: Sugar Factory Site

54

Location (City): Gering, NE (Off Hwy 92 near Lockwood Rd.)



60-80 acres


Price unknown



Lockwood Road west of US 92 4-lane

Union Pacific (UP) rail is to the south and west and would have to be extended;

no engineering

55

All utilities at site (water, sewer, electric power, telecommunication)? Yes _ No X

Sanitary sewer – City treatment plant is nearby to the west

Water and gas is just to west

Telecommunication at adjacent properties




Yes X No _

Do any environmental issues exist? Yes_ No X

Just need to be mindful that treatment plant is in close proximity.







Name: Rawnda Pierce



Phone: 308-632-2833


56

Site Name: Shane Site

Location (City): Scottsbluff, NE (Broadway, Ave B & W.12th St.)



13 acres


$1.5 million for entire 13 acres, but owner is willing to entertain offers.

Property qualifies for TIF funding.

Owner contact is Shane Aulick 308-641-2345.

57



Direct access to W 12th St., Broadway Ave., W. 8th St, and Ave B

All utilities at site (water, sewer, electric power, telecommunication)? Yes X No __




Yes X No _

Do any environmental issues exist? Yes X No _

Former cement foundations, etc. on site must be removed.

Was an EPA cleanup site from former refinery.





Part of the property is in 100 year flood plain.



Name: Rawnda Pierce



Phone: 308-632-2833


58

Site Name: Expressway Site

Location (City): Gering, NE (US 92, CR 23 & CR 22)



Two sites: 80 acres (south side) and 60 acres (north side)


Bob Unzicker owns parcel to East

Max Miller owns parcel to West

Price unknown



Access to US 92

Potential access to the Union Pacific rail spur to the northwest

59


Gas, sanitary sewer and water service are on west side (within 500 ft. at

residential site)

Electric power in place

Telecommunications properties adjacent to site




Yes X No _

Do any environmental issues exist? Yes X No _

The two sites are divided by a drainage way which may flood.




Is site outside known flood-prone areas? Yes _ No X

Above 500 year flood plain levels



Name: Rawnda Pierce



Phone: 308-632-2833


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