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By far, the most important criteria for a company considering relocation is the availability of skilled labor. Simply put, can the local workforce meet the needs of the company?
In the 1970s and 80s, corporate relocation strategy relied mainly on taking advantage of location, cost of doing business and real estate opportunities to move, relocate and expand to a region or metropolitan area. Then, labor and workforce would follow.
Beginning in the 1990s, with the advent of the Internet, wide use of technology that enables a business to operate efficiently anywhere, a global-based economy and a shortage of workforce driven by baby boomers retiring, companies rank the availability of talent and skilled labor as the #1 driving factor in relocation decisions. A younger, scarce workforce looks for ambience, a vibrant downtown, outdoor amenities, quality education opportunities and a reasonable lifestyle in which to live - and work. Labor is now in the driver’s seat and communities need to have it all.
There are other reasons for company relocation ranging from reducing operating costs, establishing a presence in a particular time zone, diversifying risk, or the owner may want to enjoy a better quality of life. Every industry, company or corporate executive is different. It is the role of an economic developer to understand a company’s needs and to portray the area in a positive light. This is most effectively done by providing detailed and accurate data about the community including comparisons to competing areas. Sometimes the information speaks for itself and the company has an easy decision to make. Other times the data may be similar between areas and incentives may come in to play.
According to data collected in 2006 by ccintellect, a marketing and research firm specializing in economic development, the top 10 site selection criteria are:
1. Ability to recruit workforce
2. Low cost
3. Pro-business tax/regulatory climate
4. Access to air service
5. Access to transportation
6. Quality or fit of specific real estate
7. Access to technical/scientific workers
8. Access to customers (large markets)
9. Financial incentives from communities
10. Access to senior management talent
Remember, a community is not judged by where it is today. It is judged by where the community is going. Launched in 2007, TREO’s Economic Blueprint is a strategic plan that defines a performance-based strategy and economic vision to effectively position the Tucson region to capitalize on its best economic development opportunities in the coming decades. The Blueprint is designed to guide our community’s economic development efforts – leveraging existing assets, strengthening foundations and defining the key steps that the region’s leaders must take to transform a common vision to reality.
The Economic Blueprint is the outcome of an extensive collaborative process that involved more than 6,000 members of the community led by a 46-member Steering Committee, who helped us understand our findings and shape our recommendations. This process was a valuable learning experience and transformational in helping Tucsonans and our leaders view ourselves differently and understand our true position within a fiercely competitive framework.
High-skilled/high-wage jobs have already increased since the launch of the Economic Blueprint. TREO’s major business attraction and expansion announcements include Arizona Canning Co./La Costeña U.S. Headquarters, Target.com Fulfillment Center, sanofi-aventis, Stanley Inc., and Texas Instruments, as well as solar successes such as Global Solar, Solon, Prism Solar and Schletter Inc.
The Tucson region is in an excellent position to attract qualified primary employers. Thanks to its strong leadership, trained workforce, superior quality of life, and a strong guiding vision, the Tucson region will continue to be a location of choice for both new residents and businesses alike.
Special thanks to Tom Clark of the Metro Denver Development Corp. for writing this
piece originally, and allowing TREO's adaptation and use. |