Agenda - 05-18-2010 - 8b - Laserfiche WebLink

Browse Search

Figure 2. Top Factors in Site Selection Decisions Site decisions are particularly critical for companies relocating their headquarters. Expenditures related to expansion and relocation have long - lasting financial impact spanning decades. Such moves are highly disruptive to employees, customers, suppliers, and stockholders and entail even more costs than "simple" expansions. In addition to costs associated with meeting regulatory requirements and purchasing new land / buildings /equipment, relocations also entail costs associated with employee relocations. Despite the pressures to remain in a particular location, companies are relocating more than ever. When surveyed as to why, CEOs cite several factors that make an existing location so undesirable that relocation becomes necessary. 13 These factors include: Growing inability to attract workers to the current location Insufficient access to banks /investment firms, law firms, cultural amenities, prestigious colleges and universities, and spousal employement opportunities Inadequate domestic and international air service Burdensome laws, rules, regulations, taxes, and /or restrictions • Unfavorable community image or reputation Lack of expansion/consolidation space available When reviewing this list, it is easy to understand why organizations are choosing the Triangle, but not Orange County as potential sites for relocation. With fewer entrepreneurs and businesses in the market for sites than desirable sites available, competition for these entrepreneurs and businesses has become fierce over the past 20 years. As a result, a jurisdiction must meet all of the criteria just to be considered. With so many potential sites available from which to choose, jurisdictions failing to meet business site selection requirements are left unable to compete. 13 Trade and Commerce Special Report, March/Apo] 2010 8 1 P a g e The Importance of Attracting and Retaining Established Business Generally a business does not begin hiring as a function of operations until it matures enough to grow past the start-up phase. Although start-ups fuel creativity and are responsible for serving as a spring -board for new ideas and services, their ability to hire is limited to their ability to grow. It isn't until they are established enough to expand and maintain growth that businesses can begin to take on more employees and offer benefits. With half of Orange County residents currently commuting for work, the County will need to attract and retain expanding businesses in order to be able to increase private employment and decrease commuter rates. Because people tend to shop either where they live or work, Orange County is more likely to retain consumer spending and commensurate tax revenues simply by increasing the number of residents who work in- County. re ord 'e Transportation infrastructure Ease of permitting and regulatory Availability of desired workforce Existing workforce skills procedures skills State and local tax scheme Transportation infrastructure Ease of permitting and regulatory Utility infrastructure Existing workforce skills procedures Land /building prices and supply State and local tax scheme State and local tax scheme Ease of permitting and regulatory Utility infrastructure Land /building prices and supply procedures Land /building prices and supply Availability of incentives Flexibility of incentives programs Workers' comp rates Transportation infrastructure Access to higher education Flexibility of incentives programs State and local economic development strategy resources Higher education resources Availability of incentives Availability of incentives Flexibility of incentives programs State economic development Higher education programs strategy Union activity Site decisions are particularly critical for companies relocating their headquarters. Expenditures related to expansion and relocation have long - lasting financial impact spanning decades. Such moves are highly disruptive to employees, customers, suppliers, and stockholders and entail even more costs than "simple" expansions. In addition to costs associated with meeting regulatory requirements and purchasing new land / buildings /equipment, relocations also entail costs associated with employee relocations. Despite the pressures to remain in a particular location, companies are relocating more than ever. When surveyed as to why, CEOs cite several factors that make an existing location so undesirable that relocation becomes necessary. 13 These factors include: Growing inability to attract workers to the current location Insufficient access to banks /investment firms, law firms, cultural amenities, prestigious colleges and universities, and spousal employement opportunities Inadequate domestic and international air service Burdensome laws, rules, regulations, taxes, and /or restrictions • Unfavorable community image or reputation Lack of expansion/consolidation space available When reviewing this list, it is easy to understand why organizations are choosing the Triangle, but not Orange County as potential sites for relocation. With fewer entrepreneurs and businesses in the market for sites than desirable sites available, competition for these entrepreneurs and businesses has become fierce over the past 20 years. As a result, a jurisdiction must meet all of the criteria just to be considered. With so many potential sites available from which to choose, jurisdictions failing to meet business site selection requirements are left unable to compete. 13 Trade and Commerce Special Report, March/Apo] 2010 8 1 P a g e The Importance of Attracting and Retaining Established Business Generally a business does not begin hiring as a function of operations until it matures enough to grow past the start-up phase. Although start-ups fuel creativity and are responsible for serving as a spring -board for new ideas and services, their ability to hire is limited to their ability to grow. It isn't until they are established enough to expand and maintain growth that businesses can begin to take on more employees and offer benefits. With half of Orange County residents currently commuting for work, the County will need to attract and retain expanding businesses in order to be able to increase private employment and decrease commuter rates. Because people tend to shop either where they live or work, Orange County is more likely to retain consumer spending and commensurate tax revenues simply by increasing the number of residents who work in- County.