Deane Foote, CEcD CEO of Foote Consulting Group · 2019-01-07 · Electrician Laborer Warehouse...
Transcript of Deane Foote, CEcD CEO of Foote Consulting Group · 2019-01-07 · Electrician Laborer Warehouse...
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TITLE
Arizona Basic Economic Development Course
Site Selection Today
Deane Foote, CEcD
CEO of Foote Consulting Group
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Not that many slides…promise!
Arizona Basic Economic Development Course
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About FCG
Arizona Basic Economic Development Course
• Site selection, economic development, real estate,
& workforce consulting company
• Worked on site selection projects that created over
5,000 jobs & $1 billion in capital investment in
recent years
• Completed many successful economic
development plans that have created hundreds of
jobs
• Deane is a Founding Board Member and former
Treasurer of the Site Selectors Guild.
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Site Selection Experience
Arizona Basic Economic Development Course
LC
• Protocast – JLC – foundry in Carson City, NV
• Navajo Chapters Inland Port
• Wal-Mart Distribution Centers (DC) nation-wide
• MeadWestvaco – DC/port locations
• Sisener – Spanish renewable energy firm
• Prewitt Industrial Park, NM
• Certified Sites Programs
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What do locating/expanding
companies want?
Arizona Basic Economic Development Course
• Access to markets/freight costs
• Skilled workforce availability & quality
• Wages/salaries
• Sites/buildings
– Certified/Shovel Ready Sites/Buildings
• Utilities/Infrastructure
– Electric power costs
• Quality of life
– Education; recreation; culture
• Incentives
– Training; tax credits; site related; closing funds fund
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Freight/Logistics: This is the least understood
factor by the ED community – could be factor #1
Arizona Basic Economic Development Course
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Labor Skills
Arizona Basic Economic Development Course
• Data on availability, quality, & cost is
essential
• Document these! valuable information for
locating/expanding companies
• Where are your skills commuting to each
day?
• Fact – workers want to be closer to home!
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Arizona Basic Economic Development Course
0 2 4 6 8 10
Welder
Truck Driver
Maintenance…
Electrician
Laborer
Warehouse Worker
Bank Teller
4.33
6.4
5.4
3.92
9.29
6.89
6.5
Worker Availability
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Arizona Basic Economic Development Course
02
46
810
Productivity
Alcohol/Drugs
Communicati…
Basic Skills
Trainability
Attitudes
Absenteeism
Turnover
7.31
8.11
6.79
6.04
7.18
7.5
7.75
7.86
Labor Quality
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Companies want “Certified”
Sites/Buildings
Arizona Basic Economic Development Course
• An essential part of site selection today!
• Site selectors want to see the cream of the crop,
now!
• Certified means your site is ready to go now, not
in 6 months.
• Arizona has one of nation’s newer programs!
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Some National Growth Sectors
Arizona Basic Economic Development Course
• Data Centers
• Fastest growing industry – $15B annually in US; $40B globally
• Servers grown from 2.6 million to 11.6 million (past 10 years)
• Aerospace/Defense Security Systems
• Drones; border-related
• Software Development
• Cyber security; apps/mobile devices; very high speed computing
• Healthcare and Medical Devices
• Health services, medical supplies, and device manufacturing
• Food Processing
• Organic/gluten free product needs
• Warehouse/Distribution (DC)
• Online retail (i.e. Amazon) has exploded!
• Oil/Gas/Renewable Energy
• Almost 3x growth in renewables in the last 10 years
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Data Centers
Arizona Basic Economic Development Course
Key Site Selection Factors:
• Geographic diversity & disaster avoidance
• Electric power cost
• State corporate income tax rates
• State and local sales taxes – Levied on millions of dollars worth of servers
– Low rates and/or abatement or rebate on sales taxes are important
• Personal property taxes on equipment
• Utility infrastructure– Electric power grid
– Transmission fed power
– Onsite substation
– Fiber availability & bandwidth
– Water for cooling
• Certified ready to go sites– 25 acre minimum could allow proper security buffer
• Speed to occupancy and state/community readiness.
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Arizona Basic Economic Development Course
Food ProcessingKey Site Selection Factors:
• Access to markets & raw materials/transportation costs
• Available unskilled/skilled labor
– Key positions: machine operators; food technicians; maintenance mechanics; and warehouse workers
• Adequate labor costs
• Excess water and sanitary sewer capacities
• Attractive electric power costs/good reliability
• Fully improved industrial sites/specialized buildings
• Incentives
– Equipment tax exemptions (large capital investment)
– Infrastructure/site readiness
– Training
• Good highway access
• Rail service may be needed
• Good labor/management relations
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Arizona Basic Economic Development Course
Cyber-Security SystemsKey Site Selection Factors:
• Excellent available skills (IT Techs, programmers, etc.)
• Access to university
• High level security clearances
• Research capabilities and network
• Class A secured leased office space
– Mass transit near by
• Reliable power
• Research and development tax credits
• Excellent quality of life
• Air service access and dependability
• Cost of living and relocation affordability
• Excellent business climate, positive community attitude
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Warehouse/Distribution (DC)
Arizona Basic Economic Development Course
Key Site Selection Factors:
• Access to market/transportation/freight costs
– Access to intermodal freight terminals and
ports growing in importance
• Labor costs/availability
– Key positions: material handlers, forklift drivers, and truck
drivers
• Electric power (costs/reliability)
• Access to Interstate/4-lane highways (5 to 55)
– Closer to interchange due to fuel costs.
• Large Certified sites (50 to 250 acres) or large buildings
• Rail service for select operations
• Incentives/Training/Retail sales tax policies
• Good labor/management relations
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Where do you meet companies/site selectors?
Arizona Basic Economic Development Course
Conferences 2019
• Site Selectors Guild
– Salt Lake City – March 18-20 – SOLD OUT
– Dallas – September 9-11
– Atlanta - March, 2020
• CoreNet – Anaheim - Oct 20-22
• International Asset Management Conference (IAMC) –
– Santa Barbara, CA - May 4-8;
– Boise, ID - Sept 12-16
• Target industry trade shows
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What can you do to help?
Arizona Basic Economic Development Course
• Work regionally with your EDOs
• Support multi-year ED funding
• And…
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Stay Alert for New Projects!
Arizona Basic Economic Development Course
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Questions?
Arizona Basic Economic Development Course
For more information, contact:
Mr. Deane Foote, CEcD
(480) 399-4854
www.footeconsulting.com