[EDAWN Column for the Reno Gazette-Journal for Sunday, July 10, 2011]
Site consultants representing companies looking for new or additional business locations, facilitate about a third of economic development deals in the U.S. The Economic Development Authority of Western Nevada (EDAWN) has spent 29 years developing relationships with these intermediaries to ensure northern Nevada is on their short list for potential locations. For example, I recently met with 15 site consultants in the New York City area. Their collective insights provide areas of opportunity for our region. And, as economic developers, we listened and I share some observations.
Among the comments, the site consultants said, “Every business is different and it’s important to provide customized service.” “Growth is happening outside the U.S. too.” “Nevada is too small to compete as separate regions.” “(Business) strategy comes before location consideration.” “Human resources (skilled talent) are always a top concern.” They agreed that only about ten communities have a desirable “young, educated, inbound population.”
Other priorities cited include, risk mitigation, taxes, operating expenses and incentives, including cash. Some research says incentives are not important, but these consultants believe they are. They added that “all-or-nothing” clawbacks (refunding incentives when companies fail or leave a community) should be replaced with scalable clawbacks. This group also mentioned that the companies they represent are asking about the financial health of states.
Image is still critical, even when the cost factors are positive. Companies have told consultants, “…that’s a great location cost-wise, but my key executives won’t move there.” Just because we love our home doesn’t mean others will. This is one reason we continue to wage a concerted national media relations campaign to enhance northern Nevada’s image.
What are the best ways to communicate with these site consultants? According to this group, one-to-one market visits are the best. Visiting them at their office is second. In-market group visits are effective if they have input on the agenda, there is solid content, it is industry sector focused, and they interact with local businesses. One consultant said, “Earned media (or news coverage) is the best general messaging. It helps creates brand identity and industry cluster awareness.” Emails only work if they are short, factual and highlight successful projects or policy changes. Newsletters and direct mail are wasted money.
Websites need to include a contact name, title, phone number, map and list of companies, and offer information they can’t get anywhere else. Advertising, in their opinion, is useless other than raising local self esteem or funds. No direct leads come from advertising. A Michigan representative noted that their multi-year $100,000,000 ad campaign yielded a single lead.
What states are doing it right? These consultants say: Utah, Louisiana, Denver, North Dakota, Indiana, Texas, Virginia, North Carolina, Tennessee and Idaho.
Most important is the message. While the tendency is to sell, even hype a region, these consultants just want facts. Community rankings may get noticed by companies, but site consultants are unfazed. Deals done and company successes are what turns heads and gets noticed by the people in the profession of locating businesses. Next month, we’ll highlight some of the deals done this year and the companies that made it happen for northern Nevada.
[Chuck Alvey, CEcD, is President and Chief Executive Officer of EDAWN
The Economic Development Authority of Western Nevada]
The Economic Development Authority of Western Nevada]
