Siting Success: Mistake #3 Non-Optimum Logistics

by Strategic Development Group | Aug 17, 2023 | Blog, Insights | 0 comments

It’s time for the next installment of Strategic Development Group’s countdown. Our SDG “Top Ten” list covers the most frequent mistakes companies make in the site selection process. Check out the other installments of our countdown!

Mistake #3: Non-Optimum Logistics

The challenge of logistics failures came front and center in March 2021 when the Suez Canal was blocked for six days by the Ever Given, a container ship that had run aground in the canal. Consumers had a front-row seat to the pain that happens when a single transportation option fails. That was a fairly dramatic fiasco for manufacturers and import/export companies. But logistics failings on any scale can chip away at companies’ bottom line in meaningful ways.

Failing to consider the cost of logistics related to highways, ports, rail, and air causes long-term repetitive cost disadvantages. Picking a less optimal location from a logistics perspective will place a non-competitive cost burden on a location for the duration of its existence. Due to higher costs and the inability to leverage one form of transportation against another, lifetime project costs swell.

Solution

Qualified site consultants ensure location cost modeling occurs to verify optimum logistics. Where possible, we recommend site locations that have multiple transportation options to create competition and shipping alternatives in the event there is an issue such as a shutdown or strike impacting primary options.

Strategic Development Group

Our experienced team is singularly focused on finding your project the best site for long-term success. We take a holistic approach and have the expertise to negotiate and navigate the intricacies of your unique company and needs.

Founded in 1999, SDG is a highly specialized site selection consulting firm. We focus on identifying optimum locations promptly, maximizing the value of incentives, and minimizing risk for corporations from across the globe. SDG has managed projects with capital investment from $15 million to over $1 billion for companies in a wide range of industries including automotive, chemical, steel, and life science.

We would love to hear your thoughts on our Siting Success blog or discuss how we can help you achieve your company or community’s goals for long-term success. Contact us!

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Mac Farr

Consultant

Mac Farr joined Strategic Development Group in 2017 as a project consultant and works closely with the Company’s senior team on activities related to incentive negotiation and site location analysis. In addition, he undertakes demographics and workforce analysis for SDG’s clients.

Prior to joining SDG, Mac worked in the commercial development industry and, in his time with a boutique development firm, led a diverse team to undertake all aspects of the development process, including project budgeting, site selection, pre-construction due diligence and construction management. He is a licensed real estate broker.

Mac earned a Bachelor of Business Administration from the Darla Moore School of Business at the University of South Carolina with a focus on Real Estate and Marketing. Mac lives in Columbia and when he is not working he enjoys exploring the mountains of western North Carolina.

Danielle Campolo

Senior Principal

As Strategic Development Group’s Senior Principal, Danielle Campolo works closely with clients to conduct site evaluation, site selection, and incentive negotiation projects for major US and multi-national corporations in automotive, aerospace, chemical, rubber, healthcare, energy, and nutraceutical industries. She enjoys working with corporate decision makers to select the optimal site for their business ventures, while considering operational, logistical, labor, and other business related costs.

From providing in-depth analysis related to specific business locational cost comparisons, to incentive negotiation strategies facilitating successful site location, Danielle collaborates with decision makers on projects of all sizes to maximize the value of economic benefits and to ensure incentives offered are on time and as stated.

Danielle has been instrumental in the successful completion of numerous site location projects for large global corporations, including JTEKT / Koyo Corporation, Nutramax Laboratories, LKQ Corporation, BP Chemical, and Bridgestone / Firestone. Her most successful projects are due, in large part, to her specialized service and attention at every level. And when it comes to public sector work, Danielle continues to offer strategic planning, goal setting, marketing studies, site evaluation and certification, best practices analysis, and organizational evaluations to numerous county, regional and state economic development programs across the country.

Danielle has a joint degree in Marketing and Small Business Management, as well as a Master’s Degree in Business Administration from the University of South Carolina’s Moore School of Business.

Jeannette Goldsmith

Vice President

Jeannette Goldsmith is Vice President of Strategic Development Group, where she specializes in site selection and incentive negotiations for clients worldwide. Jeannette’s background spans more than 20 years in site location consulting, incentive negotiations, and economic development consulting with McCallum Sweeney and then with her own company, Goldsmith Strategy. Her specific experience includes a heavy focus on manufacturing (specifically, aerospace, logistics, advanced materials and automotive sectors), as well as office sectors. Recent clients include Suntory, Boeing, Nissan North America, Suncoke Energy and Vought Aircraft. Among Jeannette’s most notable projects, are Nissan North America’s headquarter relocation from Los Angeles to Nashville, the Boeing 7E7 Final Assembly siting project and the Vought Aircraft / Alenia Aeronautica 7E7 supplier site project. Her most recent economic development assignments include evaluating automotive assembly sites for NCRR and developing and implementing a site certification program for Mississippi Power Company. In addition, she recently completed an economic development strategic plan for Transylvania County, NC and Citrus County, FL. Jeannette has designed several site certification programs, including the South Carolina Department of Commerce Certified Site Program, the Mississippi Power Certified Site Program and the site evaluation program for Duke Energy. Jeannette achieved a Masters of Public Policy from Duke University and earned her Bachelor of Arts degree in Government from Smith College. She was honored with the Graduate Student of the Year Award from the Terry Sanford Institute in 1995 and is a proud member of the Site Selectors Guild, South Carolina Economic Developers Association, as well as the International Economic Development Council.

Mark Williams

President

As Founder and President of Strategic Development Group, Mark Williams specializes in manufacturing and office facility site selection and negotiation for mid- to large-size US and multinational corporations in automotive, distribution, life science, steel and chemical sectors. From strategic planning to marketing studies, Mark also provides a variety of economic development consulting services to state, regional and local economic development organizations across the US.

Prior to founding Strategic Development Group, Mark served as Chief Development Officer for the South Carolina Department of Commerce, where he directed South Carolina’s domestic and global business recruitment activities, including the operation of Commerce’s international offices in Frankfurt and Tokyo. He has served as an advisor to US governors, mayors, legislators and directors of state development agencies in matters related to business retention, strategic planning and target marketing initiatives.

Nationally recognized as an expert economic developer, Mark has earned the professional designations of Certified Economic Developer (CED) and Certified Economic Development Finance Professional (EDFP). He chaired the former American Economic Development Council’s Certification Board, which certified professional economic developers in the US and Canada, and was President of the South Carolina Economic Developers Association.

Mark is currently an active member and Chairman of the Site Selectors Guild, a professional association comprised of the world’s most respected site selection consultants, and is a frequent US and international speaker on site selection trends. Other recognitions include being named “One of the Top 10 Site Consultants that know the South Best” and “One of the Top 3 Site Consultants in South Carolina” by Southern Business and Development magazine. Mark has also received the Order of the Palmetto, the highest honor that can be given to a South Carolina citizen, for his success in business recruiting.