Great Site Location Incentives Don’t Always Make a Great Site

Jun 2, 2015

There have been a number of significant manufacturing announcements in the Southeastern US during the last month including an investment by one of our most successful clients, Bridgestone.

Typically following announcements, there is great deal of press regarding the value of inducements provided by States, local governments and utilities. My perspective is that although incentives are an important component of a project’s economic case, the most critical factor in site selection is the site itself. Without appropriate labor draw, transportation access, utility infrastructure, and a positive business climate, site selection projects can be costly and challenging for the long haul.

Many companies have made significant long-term strategic errors by choosing sites because the initial deal was good. Site selection is critical to strategic success for major corporations and the process of selecting sites should be handled by site location professionals or knowledgeable corporate staff. Of course incentives are important but choosing the wrong site because of incentives is a costly mistake.

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