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AINTARGETED BUSINESS ATTRACTION

The Site Selection Process

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G A I N – A B R I E F O V E RV I E W

⠕ Partners - Fred Burkhardt & Greg Fullington

⠕ Comprehensive Economic Development

Services

⠕ Business Retention, Expansion, Recruitment

and Marketing

⠕ Exclusive GAINtrax Database:

⠕ Tracks Domestic Corporations

⠕ Covering 40 Specific Business and Industrial

Sectors

⠕ 35 Major National/International Site Selection Firms

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Phase 1 – Project Planning

Phase 2 – Community Screening

Phase 3 – Site Visits

Phase 4 – Final Assessment

T H E 4 P H A S E S T O B U S I N E S S S I T E S E L E C T I O N

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P H A S E 1 – P R O J E C T P L A N N I N G

⠕ Company Needs Are Aligned with Business

Goals

⠕ Needs Drive The Parameters of the Location

Search

⠕ Needs Determine Which Communities Are

Chosen.

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PHASE 1 – PROJECT PLANNING (L IST=

320)

⠕ Main Reasons Why a Business May Decide to

Seek a Site:

⠕ Proximity to Its Customers

⠕ Establish a Strategic Presence in a New Market

⠕ Better Labor Force

⠕ Changes/Limitations in Logistics

⠕ Financial Advantages

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PHASE 1 – HOW THE NUMBERS UNFOLD

Typical Preliminary Pool93%

Pool after 1st Cut6%

Finalists1%

THREE STAGES OF THE TYPICAL SITE SELECTION PROCESS

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Corporate CEO5%

Corporate CFO35%

Corporate COO25%

Outside Real Estate Brokers

10%

Site Selectors25%

PHASE 1 – WHO’S DEC IS ION IS I T ?

65% OF ALL SEARCHES ARE CONDUCTED BY CORPORATE EXECUTIVES

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PHASE 1 – HOW DO THEY FORM THEIR OPINIONS?

50.4%46.0%

35.6%28.0% 27.2%

THE FIVE TOP INFLUENCERS OF EXECUTIVE PERCEPTIONS

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WHERE DO EXECUTIVES GET THEIR NEWS?

Wall Street Journal

Daily/Local Newspapers

The New York Times

Industry & Trade Magazines

The Economist

Bloomberg Business Week

Forbes

USA Today

Financial Times

CFO Magazine

Time

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

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PHASE 2 – COMMUNITY SCREENING (LIST=20+/-)

⠕ Specific critical factors often limit or eliminate

states & communities

⠕ Manufacturing & distribution operations are

first

narrowed by the analysis of

⠕ Logistics

⠕ Freight Costs

⠕ Time to Market

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P H A S E 2 – M A I N S C R E E N I N G FA C T O R S

⠕ Proximity to Customers

⠕ Labor Costs

⠕ Labor Skill Levels

⠕ State & Local Business

Climate

⠕ Minimum or Maximum

Size of Community

⠕ Access to Internet

⠕ Proximity to Highways and

Commercial Transportation

⠕ Viability of Industrial

Buildings

⠕ Seismic & Climatic factors

⠕ Availability and Reliability

of Utilities

⠕ Security

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PHASE 2 – WHY ARE SOME ELIMINATED?

⠕ Communities are Cut from the Short List

Because:

⠕ They Do Not Meet Project Requirements

⠕ Have Not Communicated that they Can

Meet

Project Requirements

⠕ Substandard State of Readiness

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PHASE 2 – AT A P IVOTAL POINT

⠕ The Requests for Detailed Information Begins

⠕ Can Be Made Directly and Indirectly

⠕ Through the State or Other Points of Contact.

⠕ Their Decision Process is Now on a Tight Time

Frame.

⠕ Little Time Research and Package the Required

Information

⠕ Requires Development of a Package Meeting Basic

Standards

⠕ Individually Customized to Meet the Specific

Request

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PHASE 2 – THE BASIC PACKAGE

⠕ Leading employers

⠕ Status of unionization

⠕ Workforce educational

level

⠕ Access to continuing

education & training

⠕ Payroll costs

⠕ Average Salaries

⠕ Utilities

(Capacity, Reliability &

Cost)

⠕ Access to suppliers

⠕ Presence of competitors

⠕ Quality of life, along the

lines important to the

company

⠕ Statutory process

⠕ State & local incentives

⠕ Real Estate Availability

⠕ Relocation Incentives

⠕ Other areas TBD

DATA POINTS NORMALLY REQUIRED FOR EVALUATION

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PHASE 2 – RANKING COST & NON-COST FACTORS

⠕ Labor

⠕ Utilities

⠕ Transportation

⠕ Taxes

⠕ Real Estate

⠕ Travel

⠕ Communications

⠕ Availability of Quality Labor

⠕ Quality of Education &

Training

⠕ Transportation & Utility

services

⠕ Cost of Living

⠕ Quality of Life

⠕ Leadership Attitudes

⠕ Real Estate Availability

COST FACTORS NON-COST FACTORS

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PHASE 3 – SITE VISITS ( L IST=3)

⠕ IF THE PROSPECT IS AT THIS STAGE, YOU’RE ON THE

SHORT LIST

⠕ Project Teams: Site Consultant, Client Members, State/Local

Personnel

⠕ Length of Visit - Usually One Full Day

⠕ May Visit Multiple Area Sites

⠕ Considerations: Community Image, Neighborhoods, Housing &

Quality of Life

⠕ May Meet with Major Employers & Local Elected Leaders

⠕ May Request a Preliminary Incentive Package

⠕ Very Mindful of the Degree of Cooperation and Professionalism

Demonstrated by the Community

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P H A S E 3 – A F T E R T H E S I T E V I S I T …

⠕ Real Discussions About Incentives Now Take

Place

⠕ A Final Report is Prepared that Includes:

⠕ Refined Operating Cost Pro Forma

⠕ Recommendation of Final Preferred Site

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P H A S E 4 – F I N A L P R O S P E C T A S S E S S M E N T S

⠕ Prospect Review and Assessment of:

⠕ Incentives

⠕ Real Estate

⠕ Overall Community

⠕ Review of Final Rankings

⠕ Notification of final location

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G A I N ’ S D R I L L D O W N P R O C E S S

Newspapers &

Magazines

Internet Social Media

Conferences & Trade

Shows

Financial Reports

Industry Trends Databases

80%70%60%

50%

Community Profile &

Resource Assessment

Community Demographics

Available Sites & Buildings

Government Attitude

Taxes & Incentives

Workforce Characteristics

Company Profile & Needs Assessment

Access to Market

Access to Raw Materials

Access to Labor

Special Needs

Cost of OperatingDrill Down produces pools of firms that

match the target profile. GAIN considers an 80% match as a high

value target for recruitment