Hello Everyone! We have officially kicked off our marketing campaign designed to assist communities that are facing new challenges stemming from closing plants. With all of our experience, especially that in Moraine, Ohio helping breathe new life into the closed GM plant alongside our consulting partner AngelouEconomics, we are confident that we can help get these communities back on their feet. Though the plant closings have created hardships for many, these vacant plants really can breed new job opportunities.
Hi All! Just returned from the Dayton area where, with partner Angelou Economics, we presented the market and GM plant assessment to our client, the City of Moraine. It was well received and we had good discussion regarding such issues as Ohio’s improving tax status, importance of quality of life in site selection and the strengths and weaknesses of the closed plant. Next steps will be the target industry analysis and completion of the reverse site selection assessment. The economic problems are vast here, but there is good promise for growth, particularly in aeronautics, renewable energy and other advanced manufacturing. Next stop, Indy later this week where I will be learning about new State of Indiana advances! Later, Deane
We have experienced first-hand the importance of ready to go real estate opportunities in our recent site selection and economic development work in Ohio, Iowa, New Mexico, and here in Arizona. Good “shovel ready” or “certified” sites simply lead to better and faster economic development results.
A number of states and regions around the country have already developed shovel ready or certified sites programs. Although called by different names, all generally offer similar objectives, including:
• To create development standards that will provide well-planned industrial sites/parks that will attract new investment and jobs
• To create development standards that will provide a variety of industrial products (i.e. mega sites, heavy/light industrial sites, R&D sites/parks)
• To provide funding to help operate the programs and design/develop new certified industrial sites/parks.
We have observed both pros and cons of a number of shovel ready programs and have come to the conclusion that there are a number of factors important for a successful program, including:
• Good regional economic development cooperation and participation
• Focused target industries and a good understanding of their site/building needs
• Site selection standards and criteria covering all development aspects
• The right number of diverse sites and a way to replenish the pools of sites as they sell
• A well financed program with an active infrastructure fund to spur development
• Well-planned/defined schedules, timelines, and deadlines
• Professional methods designed to expedite the development process (i.e. permitting); getting projects to market on or ahead of schedule is one of the top site selection priorities of companies today
• Use of a “third-party site selection consultant” to help select and review sites. This will create more success in terms of new location/expansions and in “maintaining an objective location process with minimal political intrusion.”
• Sustainable or “green” practices.
Now that you’re “shovel ready,” enjoy the fruits of all your new locations/expansions! Regards, Deane
I had the opportunity to tour and assess a recently mothballed auto plant in the Midwest recently with associate Jim Colson, President of Site Selection with AngelouEconomics. The mood was a bit somber as we walked through over 4 million square feet of dark and empty manufacturing space — space that just months ago was bustling with activity as SUVs streamed off the assembly line.
In the back of my mind as we walked through the plant, was the future of over 3,000 skilled workers that were put out of work due to this closure. Seemingly unreal, this scenario is being repeated all across the county leaving dozens of facilities empty and tens of thousands of workers in unemployment lines.
Prominent in my thinking as we assessed the facility was how it could be converted into new productive manufacturing space. Careful targeting, planning, retrofitting, and the right cooperative partnering can turn this liability into a new opportunity.
One clear path to capitalizing on this new opportunity will be to target renewable energy projects. The growth projections for renewables are impressive as I pointed out in our recent webinar, Location Trends of Today’s Thriving Industries (check it out in the last FooteNotes entry). Renewable energy capital investment in the U.S. is projected to top $325 billion by 2018!
Wind energy, solar, and biofuels projects could all be good potential targets for large manufacturing buildings. For example here are typical site selection criteria for a wind turbine manufacturing facility:
Wind Turbine Site Criteria
(Nacelle units [gearbox, generator and transformer components] & blade assembly)
• Access to market – wind farms
• Available labor (up to 1000 jobs) – machining and electronics skills with good quality
• Rail (more than one provider preferred)
• Sites (up to 200 acres)/available industrial buildings (up to 500,000 sq.ft./high ceilings)
• Free of earthquake or flood zones
• Training – college offering mechanical and electrical engineering degrees; plus machining and electronics
• Incentives and positive state/local policies.
Renewables and other emerging growth targets represent behemoth opportunities! Good prospecting, Everyone! Deane
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