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Strategies in Site Selection. Presented by: James Renzas President Location Management Services, LLC. Introduction . Overview What Are Site Selection Services? Why Are Site Selection Services Needed? The Site Selection Process: Phase I: Area Screening Phase II: Site Selection

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Strategies in Site Selection

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Strategies in Site Selection

Presented by:

James Renzas

President

Location Management Services, LLC


Introduction

  • Overview

  • What Are Site Selection Services?

  • Why Are Site Selection Services Needed?

  • The Site Selection Process:

    • Phase I: Area Screening

    • Phase II: Site Selection

    • Phase III: Incentives Negotiation

  • Key Points to Remember

  • Contact Information


Utilities

Demographics

Labor Market

Sites

Buildings

Transportation

Quality of Life

Incentives

Business Climate

Overview

  • Selecting the Optimal Location for:

    • Office

    • Manufacturing

    • Distribution

  • There is no “Perfect” location for corporate facilities – each location is a trade-off of various location criteria. The goal of Site Selection is to find the best combination of factors to support corporate goals and objectives.


What are “Site Selection Services”?

  • Site Selection services help companies select the best location for a new or relocated facility to achieve corporate goals and objectives

  • Site Selection Services are often needed when:

    • The client is entering new markets and needs to identify the best location

    • When operating costs or operating conditions deteriorate at existing locations

    • When consolidating multiple facilities or operations

    • When business conditions dictate the need for expansion


Why are Site Selection Services Needed:The “Baby Bust”

  • Over this decade we will experience a 9 percent reduction in mid-career workers in the 35 to 44 year old range

  • Open positions in the U.S. will increase from 5 million today to 10 million by 2010

  • The current unemployment rate for college graduates is less than 2 percent

  • Areas all over the world are showing signs of labor market shortages – even in China


The Site Selection Process

Three Phase Process:

  • Phase I: Area Selection

  • Phase II: Site Selection

  • Phase III: Incentives Negotiation


Phase I: Area Selection

  • Starts with the “Standards of Location” Questionnaire

  • Definition of the “Search Zone”

  • Screen Hundreds of Potential Locations

  • Fatal Flaw Analysis Eliminates all but Ten Semi-Finalist Areas

    • Key Criteria =

      • Labor Force Availability

      • Unionization

      • Available Sites/Buildings

      • Utility Availability

      • Transportation Cost

  • Further Analysis Eliminates all but Three Finalist Areas


Phase II: Site Selection

  • Field Investigation of Finalist Locations

    • Interviews with similar employers

    • Labor market experts

    • State and local officials

    • Utilities

    • Educational institutions

    • Quality of life


Operating Cost Matrix


Operating Conditions Matrix


Summary Decision-Matrix


Phase III: Incentives Negotiation

  • Concentrate on Top Two Finalist Locations

  • Identify Key Incentives Negotiations Goals

  • Make No Commitment Until Incentives Documentation

  • Re-Run Decision Matrix with Final Incentives Numbers

  • Abstract Incentives Agreements and Calendar Critical Compliance Due Dates and Information

  • Never make a Location Decision on Incentives Alone


Key Points to Remember

  • Selecting the Best Location for Corporate Facilities is More Important than Ever

  • It is Important to Employ a Structured Methodology to Select the Best Location

  • Utilize the Three Step Process to:

    • Identify the Best Prospect Areas

    • Create a Decision-Matrix for Critical Criteria

    • Negotiate the Best Incentive Package and Collect


Contact Information

For more information go to:

www.locationmgmt.com

Or Call Me Directly at:

James H. Renzas

President

Location Management Services, LLC

949-472-4482

jrenzas@locationmgmt.com


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