Incentives Should Generate Win-Win Scenarios
The ideal site location deal for corporations typically consists of two major elements:
- The site must provide optimum conditions from an operational perspective considering factors such as logistics and demographics, and
- The deal must provide the best financial outcome.
For states and regions providing incentives to induce site location projects, a site location deal should generate more positive economic impact than the costs of inducing the deal. There are site location deals that provide a competitive advantage to the company locating as well as a net benefit to communities that they locate. Companies should be careful not to enter into agreements that do not provide long term benefit to communities. Such deals will ultimately generate public relations and financial challenges.