41
Virginia Economic Developers Association Spring Conference – Charlottesville, VA March 31, 2017 Powering a Dynamic Region Through Strength of Local Assets
Virginia Economic Developers AssociationSpring Conference – Charlottesville, VA
March 31, 2017
Powering a Dynamic Region Through Strength of Local Assets
2
About McCallum Sweeney
Role of regions
Region in the site selection process
Regions powered by local assets
Role of the local developer
MSC Clients
3
KasleSteel
Boy Scouts of America SGL Automotive CarbonFibers LLC joint venture
American Titanium Works
Role of Regions
5
Role of Regions
6
economic
Regions are defined by connections
transportation
topography
culture
Role of Regions
7
Regional connections must be identified, nurtured,
and maintained
by local economic developers
8Joel Kotkin (Forbes, 2013). Map created for New York Times, 2016
Economic
Mega-Regions
Dash Nelson G, Rae A (2016) An Economic Geography of the United States:
From Commutes to Megaregions.
Economic
Mega Commute Areas
Transportation
10Regional High Speed Rail Corridor; Regional Transportation Alliance
11
Topography
12New York Times; 10-3-2014
Culture
NCAA Football Allegiance
Region in the Site Selection Process
13
Region vs. Regionalism
14
Regionalism brings together economically related
but asset-diverse areas to provide a stronger
organization, message, and competitor than going
alone as a local.
Region in the Site Selection Process
17
Define Search Region /
Center-of-Market Analysis
Negotiations /
Financial Modeling
Regional Screening based
on Project Criteria
Risk Analysis
Property Visits /
Comparative Assessment
Location Selection
RFP & Proposal Screening
REGIONAL
LOCAL
Region in the Site Selection Process
18
Planning Phase Phase 1 Phase 2 Phase 3 Phase 4
• Conception
• Feasibility
• Investment Decision
• Alignment/ Criteria
• Regional Analysis
• Areas of Interest
• Request for Proposal and Desktop Research
• Candidate Locations
• Community Visits
• Location Evaluation
• Comparative Analysis
• Finalist Locations
• Negotiations
• Evaluation
• Site Due Diligence
• Internal Selection of Preferred Location
• Prepare MOU
• Real Estate Transaction
• Public Announcement
• Incentive Capture Support
Region in the Site Selection Process
18
Planning Phase Phase 1 Phase 2 Phase 3 Phase 4
• Conception
• Feasibility
• Investment Decision
• Alignment/ Criteria
• Regional Analysis
• Areas of Interest
• Request for Proposal and/or Web Research
• Candidate Locations
• Community Visits
• Location Evaluation
• Comparative Analysis
• Finalist Locations
• Negotiations
• Evaluation
• Site Due Diligence
• Internal Selection of Preferred Location
• Prepare MOU
• Real Estate Transaction
• Public Announcement
• Incentive Capture Support
Regions Powered by Local Assets
20
Regions Powered by Local Assets
21
PEOPLE Workforce Demographics/Diversity
INFRASTRUCTURE Transportation Land/Building
CULTURE / IDENTITY Research/Education Arts/Entertainment
ENVIRONMENTAL Recreation
Utilities (Electric, Gas, Water, Sewer, Telecomm)
ECONOMIC Industry Mix
Protection/Conservation
Operating Environment
Top 10 Site Selection Factors
• PEOPLE1. Availability of skilled labor
• INFRASTRUCTURE2. Highway accessibility
• PEOPLE / CULTURE / IDENTITY / ENVIRONMENTAL3. Quality of life
• ECONOMIC4. Occupancy or construction costs
• INFRASTRUCTURE5. Available buildings
• ECONOMIC6. Labor costs
• ECONOMIC7. Corporate tax rate
• ECONOMIC8. Proximity to major markets
• ECONOMIC9. State and local incentives
• INFRASTRUCTURE10. Energy availability and cost
22
Area Development Magazine Corporate Survey 2015
Role of the Local Developer
7
Regional connections must be identified, nurtured,
and maintained
by local economic developers
24
Role of the Local Developer
• Product Development
– Leadership
– Sites
– Infrastructure
– Human Resources
• Education
• Training
– Taxes
– QOL
– Community Assets
• Organization
– Vision & Strategic Plan
– Organization Design
• Staffing / HR
• Programs
– Funding
• Sales & Marketing
– Market Segmentation
– Product Knowledge
– Customer Knowledge
– Communication
25
Product Development:Sites and Infrastructure
• Basic Need for Growing Companies
• “Dirt Won’t Do”
– “Property” does NOT equal “Site”
• Location Decision Demands Speed
– Site selection and facility start-up
• Be Prepared – maintain a portfolio of ready, available sites
9
Sites and Infrastructure
• Severcorr Steel
Columbus, MS
• Rural community
• Demanding site specs
• Community proactively
prepared
– Site certification
• $800 million
• 450 jobs
27
Sites and Infrastructure
• Sierra Nevada Brewing
Mills River
Henderson County, NC
• Small mountain community
• Community preparedness:– Duke Site Readiness Program
• $ 107.5 million
• 90 to 100 full time jobs
28
Sites and Infrastructure
• Giti Tire
Richburg, Chester County, SC
• Rural community
• Community preparedness:– Duke Site Readiness Program
– McCallum Sweeney Certification
• $560 million
• 1,700 jobs
29
OrganizationFunding
• Funding
– Secure
– Reliable
– Adequate
– Long term
– Broad participation / broadly supported
– Flexible and discretionary
• Avoid too much “earmarking”
13
Sales and MarketingCustomer Knowledge: Fundamental Characteristics
• Profit Driven
– Investment for purpose of return
• Deadline Driven
– Both the site selection and the project
• Competitive
– Multiple location options
• Comprehensive
– Complex decision involving most functional areas
• Risk Averse
31
Sales and MarketingMarket Segmentation
• Investment and Jobs from Outside
– Recruitment
• Additional Jobs and Investment from Inside
– Expansion / retention
• New Investment and Jobs from Inside
– Entrepreneurial development
• Be Prepared – Position for All Segments
15
New River Valley Region
33
Volvo Trucks New River Plant, Dublin, Virginia
34
Volvo Trucks: 30-Minute Drive Time
35
Volvo Trucks: 45-Minute Drive Time
36
Volvo Trucks: 60-Minute Drive Time
37
Volvo Trucks: 60-Minute Drive Time
38
Volvo Trucks: 60-Minute Drive Time
39
40New York Times; 10-3-2014
GO Hokies!
Mark M. Sweeney
Senior Principal
McCallum Sweeney Consulting
15 South Main Street, Suite 950
Greenville, SC 29601
864-672-1600 (main)
864-672-1610 (fax)
www.mccallumsweeney.com
@McCallumSweeney
41
Thank you
