The Value of Industry and Occupational Data in a Location Decision
ompanies of all sizes are on a constant mission to attract and retain top talent. Of course, there are financial goals to track and budgets to maintain. This is one reason why site selection can be such a challenge. You probably have a solid understanding of the market in your current area, but how will the landscape look in three to five years and/or an entirely new region? Asking the right questions at the beginning of the site location process can help ensure that your organization will be positioned for continued success.
The Right Questions for Your Market
Location decisions rarely have a straightforward answer. Consequently, your decision-making strategy must look at both the bigger picture and the finer details. The community’s economic stability, opportunities for growth, tax structure and talent pool will all inform the site selection process. Analyzing your options as they relate to your industry sector is often a good place to start. You may want to consider the following:
- Who are your competitors in this region?
- Does the market show an industry sector that is oversaturated?
- Are the average hourly wages appropriate for our budget?
- Has this industry grown in the last five years?
- What is the industry sector’s projected growth?
In addition to industry data insights, you will also need to evaluate the occupational data for your potential site location. Some of the most common questions for understanding this aspect of the market include:
- Are there enough qualified candidates in the market?
- Does our budget for talent include realistic, competitive wages and benefits for this market?
- Will the area be attractive enough to recruit talent from other regions?
There are many concerns for navigating site selection, but a data-driven approach will help you weigh your options and ensure that you are following through on your company’s short and long-term goals. There is a clear list of categories to review, and each of the details must work together in harmony.
Comparing the Critical Factors
Quantitative and qualitative factors are equally important for location modeling. As such, you will need to conduct a detailed comparison and rank each critical factor for how it best suits your specific goals and the interests of your growing team. In addition to your industry’s own data sets (based on the questions above) and the physical needs of your site’s real estate or construction costs, your site selection analysis will also need to review the following for your ideal labor force:
- Cost of living and quality of place
- Real estate availability for new employees
- Transportation infrastructure
- Utility rates, availability, and capacity
- Tax rates and tax structure
At Ginovus, we understand that what matters the most for one organization’s talent pool and growth model is not always true for another. This is why we take the time to learn more about your business, industry sector and the talent you need to be successful. A careful review of the other businesses in each area will also impact your final decision. Looking at the current status of the region is often not enough. We must think strategically and anticipate other changes the area will experience in the years to come.
With so many factors in play, having a trusted team of advisors can streamline your market assessment. We can prepare the necessary data and help you analyze each opportunity. Being able to sift through all of the pertinent information will empower you to make the best possible location decision. Contact us anytime to discuss if we can provide valuable insight and collaboration on your next relocation or expansion project.
W ith more than 30 years of economic development and site selection experience, Larry Gigerich has served clients all across the United States and beyond. Amidst the uncertainties with the coronavirus outbreak, economic development professionals, business leaders, and...