Eco. Dev. Attraction

Tim Chase, CEcD, FMPresident/CEO

Wichita Falls Chamber of Commerce & Industry

• Why Businesses Move• Attraction Strategy• Location Decision Points• Network Marketing• Site Selection Process• More Information

Why Businesses Look for New Locations

• Increase profitability • Need more, less, or different space

– Lease vs. own

• Need different labor force (# or skills)• Fleeing union• Result of merger or acquisition• Poor business climate• Quality of life motivation (rarely)

Situational Analysis Tools

• SWOT Analysis: – Internal factors are subject to influence or change.– External factors are generally beyond local control

• Economic Base Impact Analysis: – Export or primary– Non-export or secondary

• Input Output Analysis: – Traces money between inter-related industries– Quantifies “Multiplier Effect”

Cluster Analysis & Targeted Industries

• Cluster analysis identifies forces which shape markets– Shift-Share Analysis (ratio comparing two geographies) – Location Quotient (measure of industry concentration)

• How clusters are discovered:– Look deeply to identify successful related groups of companies– Identify factors needed to make these groups more competitive– Design strategies, including networks, to address those factors

• Target industries– Can expand on existing clusters– Can be used to drive a new strategy– Must be better than a 60/40 likelihood

Key Location Decision Points

• Old Model

– Location

– Infrastructure

– Transportation

– Markets

• New Model

– Labor Availability

– Labor Quality

– Work Ethic

– Education Resources

The Site Selection Process

• A 2 Phase Process

Phase 1 – Process of Elimination

Phase 2 – Process of Comparison

Chamber

Utilities

BusinessConsultants

Developers

RealEstate

Brokers

State Government

ConsultingEngineers

Existing Industry

SiteConsultants

Network Marketing

Overview: Facility Siting Process(Slide courtesy of McCallum-Sweeney Consulting)

Planning Phase

•Conception

•Feasibility

•Investment Decision

Phase I

•Alignment/Criteria

•Regional Analysis

•(Areas of Interest)

•RFP

•Candidate Communities

Phase II

•Community Visits

•Site Evaluation

•Comparative Analyses

•Finalist Communities

Phase III

•Negotiations

•Evaluation

•Site Due Diligence

•Selection

•Announcement

Best Sources of Information