Transformational Projects: The Next Wave of Location Strategy is Here
Transformational Projects: The Next Wave of Location Strategy is HereJune 27, 2023
A new survey conducted by the Site Selectors Guild indicates that the next wave of location strategy is here. Amid the heightened frequency of corporations’ multi-billion-dollar facility investments known as “megaprojects,” there is a clear domino effect of “transformational projects,” or capital expenditures in secondary markets that stimulate outsized job creation, housing, retail, and other activity compared to the market’s historical record of economic development.
Based on a survey comprised of 60 Guild members who lead location strategy for companies around the world, site selectors reveal three factors influencing transformational projects and in which industries and types of locations they are seeing transformational investment.
ECONOMIC DEVELOPMENT ORGANIZATIONS’ RACE TO ATTRACT TRANSFORMATIONAL PROJECTS
When asked how economic development organizations (EDOs) can pursue transformational projects or leverage the capital investment of a nearby project in their own community, site selection consultants give four main target strategies – see below.
Know and listen to one’s community. For a transformational project to be effective, it must have a long-term impact on the community. Evaluate the project, make sure the community can accommodate the investment (i.e., infrastructure, talent, site development, utility needs), and focus on multiple industries to lower risk.
The pitch must be concise and tailored to the company or industry one is attracting. Leverage the community’s strengths. Address the community’s weaknesses with long-term policy commitments at a state or national level to mitigate or overcome them.
The EDO must be agile and in-sync with its partners so the investment process for the company is smooth and streamlined. Have a marketing strategy in place in order to be heard and don’t be afraid of lead generation efforts to target companies in the desired industry.
Collaborate with neighboring EDOs to build understanding and respect and to offer solutions. Work together to engage with public officials about the types and level of incentives necessary to win a transformational project.