Delivered September 27, 2019. Contributor: Jennifer P.
To determine key motivations and barriers for C-suite executives in choosing a location to relocate or expand their company or business.
Key factors chief executives are considering when selecting sites were noted to include globalization,shortage or availability of specialized labor, environmental regulations, and location proximity to customers and suppliers.
However, it was also noted that when determining a location, companies may consider up to 40 key factors
State incentives and how these are deployed tends to be a key factor as well, and companies in various sectors may be drawn to tax incentives that reward companies that select sites that lead to job creation, employee training, or other community benefits.
For example, while a data center might be focused on the cost of electrical demands, and having multiple utility carriers to choose from, an auto part manufacturer might be more interested in proximity to OEM facilities. Many companies may choose based on major shipping hubs and transportation as well.
One source notes the “3 Cs of successful site selection” which are company, culture, and community.
Companies who link up their company culture with the “soul of a company’s surrounding community” will be more successful. For example, executives are more often choosing communities that align with their company purpose- such as VF Corporation’s sustainability mission being supported by Denver’s green-oriented culture. Selecting sites in places that match a company’s culture are often thought to be key to these companies prospering.
Similarly, it’s also noted that business executives may scope out the political climate of a location to see if it lines up with their values, and whether political decisions will help or hinder company operations.
Only the project owner can select the next research path.