RULES OF
ATTRACTION AND
THE ART OF
SEDUCTIONMain Drivers for Industrial Projects and What To Do To Persuade Investors
Catalina ValenciaSenior Consultant
Global Location Strategies
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Drivers for capital intensive projects
Common denominator
What communities can do to attract them
3|
Global Location StrategiesGLS +40
Years of experience
$3.6BCapital investment
4,000Jobs created
70Countries
4|
Top Investment ProjectsSoutheast
Source: SB&D Investments 100; Top 100 development projects in the South in 2015
$43 $19 $10 $8 $3 $2 $2 $1.6 $1.6 $0.7Billion USD
~85%Capital intensive
~73%Without oil & gas
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Capital Intensive vs. Labor Intensive
CapitalIntensive
Labor Intensive
Sit
e &
B
uild
ing
250 acres50 min.
50 acres15 min.
300K sq. ft. 100K sq. ft.
Cap
ital
Inve
stm
en
t
$300MM $65MM
80% 75%
Em
plo
yees
200 300
35% 30%
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Capital Intensive vs. Labor Intensive
CapitalIntensive
Labor Intensive
Uti
litie
s
20 MW166.4 MM kwh
10 MW83.22 MM kwh
1,080,000 MCF 270,000 MCF
365 MG 62 MG
329 MG 57 MG
Log
isti
cs
Usually No
10 Miles 10 Miles
Possible No
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Capital Intensive Project Drivers High
Low – Moderate
More technically trained
More
Intensive
Longer
Utilities
Logistics
Permitting/ Zoning
8|
Capital IntensiveProject Drivers
Logistics
Deep-water port or barge terminal
RailColocation of supply
chain partners
Heavy truck movement Airport runwayx
Intermodal
Utilities
Heavy utility dependency
Other industrial gases –e.g. oxygen, nitrogen
Raw water
Direct discharge
Pipelines
9|
Capital IntensiveProject Drivers
Permitting/ Zoning
Air quality attainment
Waste disposal for hazardous/ non-
hazardous materials
Availability of credits, if non-attainment
NPDES permit
Tall buildings with stacks
Steam plumes of visible water vapor
Heavy-industrial zoning or no zoning
Chemicals storage permitting
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Conditional Criteria2015 –Case Study 1
25%
15%
15%
20%
10%
15%
Workforce
Logistics/ Supply Chain
Utilities
Environmental/ Permitting/
Zoning
Schedule
Site Prep/ Site Characteristics
100 MW
550 MCF/hr.
5 MGD
3.6 MGD
700People
Utilities + Logistics:31% of Criteria
Weight
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Cost Impact2015 –Case Study 1
39%
11%
31%
14%
2%2% 1% -1%
Outbound Freight
Inbound Freight
Utility Costs
Labor Costs
Property Taxes
Lease
Sales & Use Tax
Incentives
100 MW
550 MCF/hr.
5 MGD
3.6 MGD
700People
Utilities + Logistics:81% of operational
costs
12|
Conditional Criteria2015 –Case Study 2
$300MM
20MW
125MCF/hr.
1MGD
200People
10%
15%
10%
15%20%
5%
25%
Workforce
Logistics/ Supply Chain
Utilities
Environmental/ Permitting/
ZoningSchedule
Other
Site Prep/ Site Characteristics
Utilities + Logistics:25% of Criteria
Weight
13|
Cost Impact2015 –Case Study 2
$300MM
20MW
125MCF/hr.
1MGD
200People
32%
29%
18%
12%
12%
5%1% 0.4%
Inbound Freight
Natural Gas/ Steam
Labor
Other/ RM VAT
Electricity
Lease
Industrial Water
Industrial Wastewater
Utilities + Logistics:86% of operational
costs
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Capital Intensive ProjectsCommon Denominator
Infrastructure
Utilities Logistics
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What communities can do to attract capital intensive projects? Get control
Characterize
Understand capacities & limitations
Consider non-traditional needs
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What communities can do to attract capital intensive projects?
Think outside of…your town, your county,your state…
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Takeaways
Finding the right site
Big challenge
Site readiness
Priority
Infrastructure
Common denominator
Big or small
Opportunities for all