Site Selection Drivers & Regional Economic Development

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Site Selection Drivers &

Regional Economic

Development

Gregg Wassmansdorf

Senior Managing Director, Consulting Global Corporate Services Newmark Grubb Knight Frank

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The Serenity Prayer

God, grant me the Serenity to accept the things I cannot

change,

Courage to change the things I can,

And Wisdom to know the difference.

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The

Economic Developer’s

Serenity

Prayer

God, grant me the Serenity to accept the things I cannot

change,

Courage to change the things I can,

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Agenda

1.

Introduction to NGKF and Location Consulting

2.

Successful Regions: Site Selection Factors

3.

Successful Regional Economic Development

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Geography is (not) Dead

The ongoing debate



2005: Thomas Friedman



Globalization levels playing field



Geography becomes less relevant



“Flatteners” bring the world together



“Innovate with no need to emigrate”



2005: Richard Florida



Globalization is uneven & unequal



Benefits & costs are geography-specific



Culture, education, innovation, wealth,

competitiveness are highly localized

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“Triggers” for Location Change Events

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Situation



Growth required $500 million investment & 6,000 new employees.



Where? Current location in Beaverton, Oregon or an alternative?

Approach



72 location criteria and multiple occupancy scenarios



Talent, culture, image, brand, productivity, profitability



Benchmark location vs. metro alternatives.



Total business model comparison

Results



Challenged pre-conceived location & cost assumptions



Provided robust analysis to support “stay & expand” decision



Improve the cost structure for the corporation long-term

Headquarters “Stay vs. Go” Location Strategy

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Situation



“Big Data” client needs new global locations for enterprise data centers.

Approach



Detailed utility, infrastructure, and site critical location

criteria to reflect the unique regional requirements.



Power, data connectivity, operating costs, taxation



Gathered data on hundreds of sites in 40+ countries



Multi-criteria decision analysis for assessments

Results



Created business intelligence databases for each region



Built decision model with 50+ variables and 275+ sites



Enabled faster, more confident decision-making

Enterprise Data Center Location Intelligence

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Agenda

1.

2.

Successful Regions: Site Selection Factors

3.

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Business-friendly,

supportive environment:



Reasonable &

predictable regulation



Lower taxes (with/without incentives)



Quality infrastructure & services



Government at the speed of business



Alignment between governments,

ministries, and department

What makes a metro region successful

Key site selection and economic development factors today.

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Overall business competitiveness

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Sizeable, well-skilled workforce:



“Sustainability”



Cost & Quality



Trained / Trainable



Education “Pipeline”?



Permanent,

not Temporary:

“Capacity Building”

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Variety of good quality training &

academic institutions that provide and

produce different skills and talent.



Trades



Diplomas



Degrees



International (Re)certifications



“Centers of Excellence” – act as magnets

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Excellent transportation and supply

chain infrastructure & connectivity.

What makes a metro region successful

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Affordable costs of doing

business and cost of living.

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Minimal natural and human risks.

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

Clusters of economic activity

& capability.



Infrastructure availability

and ability to bring new capacity to market.



Quality of place ~

healthcare, safety, diversity, entertainment,

shopping, amenities, etc.



“Triple Bottom Line” thinking:

People, Planet & Profits

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Agenda

1.

Introduction to NGKF and Location Consulting

2.

3.

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Unified marketing brand for

the region.



Founded in 1999



Press releases from 2004, 2005, 2012



Population stats from 1996



“Partner Network”:



Airport + Economic Development Winnipeg



5 consulting engineering firms

What successful regional economic development looks like

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What successful regional economic development looks like

Success factors for good metropolitan economic development from a site selector’s perspective.

Communities ?

Regions ?

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Excellent collaboration between provincial /

state, regional, and local economic

development.



Partners know their strengths & weaknesses



Value is articulated clearly



Partners know when to step forward or step back

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“Public – Utility – Private – Academic”

collaborations & partnerships that are

well-funded and functional.

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Comprehensive, easy to navigate

website that is rich with high-quality,

current information, data, sectoral

highlights, testimonials, and more.

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Comprehensive, easy to navigate

highlights, testimonials, and more.

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Comprehensive, easy to navigate

highlights, testimonials, and more.

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Wide variety of serviced and available

buildings and sites.



Robust commercial real estate sector



Public investment in infrastructure



Planning, Zoning, Building & Council aligned



Creative options:

“Certified Sites” or “Shovel Ready” Programs

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Regular, ongoing, focused,

and compelling marketing to

site selectors and business

influencers – plus a savvy

social media presence.

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“Community

Ambassadors”



Support marketing

initiatives



Accessible to

prospects conducting

due diligence



Available for

interviews, media

events, etc.

Successful regional economic development

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Professional economic development

staff who can speak with a high-level

of business and technical knowledge;

political leaders who “lead” not “do”.

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“One window” approach –

a single regional point of contact to handle:



Outbound marketing



Inbound inquiries



RFI responses



Project management



Coordination of information gathering and tour

activity.

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Agenda

1.

2.

3.

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