How should I choose where to locate?

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How should I choose where to locate?

  • Deloitte, incentives, local labor market, locate, location, SelectUSA, site selection, tax environment, Value Drivers


Deloitte presented an interesting summary on Site Selection at the SelectUSA conference in Malmo, Sweden, Sept. 2015

Overall considerations depend on the drivers and obstacles to value creation in each location.
Value Drivers include things like:

  • A skilled local labor market that is scalable and sustainable
  • Quality of local environment to attract best talent
  • Optimal tax environment
  • Access to markets
  • Protection of intellectual property
  • Minimized and mitigated development risk, including permitting, environmental, labor management  relations, and natural disaster risk
  • Availability of suitable real estate and infrastructure
  • Statutory and discretionary incentives that are fungible, executable, and valuable
  • Confidentiality maintained until client is ready to announce the project

Obstacles include:

  • Lack of a rigorous site selection, due diligence, and negotiations process
  • Insufficient labor analysis
  • Studying the wrong location factors
  • Limited tax and incentives knowledge
  • Limited relationships and leverage during incentives negotiations
  • Allowing the location decision to be driven by the real estate transaction
  • Appropriate level of funding for the process
  • Confidentiality breached

Site Selection Deloitte

See a nice infographic of this process here.

See Deloitte’s full PDF to learn about how to avoid mistakes here.

The mistakes to avoid include these:

  • Unprepared site selection team…multi-disciplinary team required
  • Lack of executive consensus…communicate early and often
  • Incorrect search area…think bigger
  • Narrowing the search area too rapidly…be conservative
  • Failure to consider all issues…think broadly and be balanced
  • Incomplete labor market analysis…consider all factors
  • Failure to consider community trends…understand the long-term
  • Poor or absent technical site review…do your homework
  • Breach of confidentiality…discretion is key
  • Failure to capture negotiable incentives…don’t be afraid to ask
  • Acceptance of overvalued incentives…quality not quantity
  • Poor implementation of incentives…get what you deserve

At this link you can watch an interesting 1 hour webinar recording about how to choose your US location, by CASE (Council of American States in Europe).

Let us know if you’d like further advice on this topic!