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 Feature Industry Articles 
Monday, September 30 2019
How Rapidly Changing Technology is Impacting Location Decisions in the Logistics Industry

By Jeannette T. Goldsmith,  Vice President, Strategic Development Group

“Every company is a technology company.”  I can’t remember who said this first or where I heard it, but there is no doubt that this statement is true. Even with the inevitability of it, we continue our collective hand-wringing about the move to greater automation and artificial intelligence on the manufacturing floor. There can be little doubt, however, that technology has already resulted in dramatic shifts in the transportation and logistics industry. These shifts have affected all facets of the industry including warehousing, distribution channels, fleets, and workforce. Strategic Development Group has seen how these changes are impacting the way in which companies select new locations for their logistics business.

Autonomous Vehicles and Drone Delivery
Perhaps the “sexiest” technology trend in the logistics industry is the use of autonomous vehicles and drones in the movement of products. While I am fascinated by the potential for autonomous vehicles, I have my doubts about how fast this technology will be adapted. There are two reasons for my hypothesis.  

Posted by: Nicole@ExpansionSolutionsMagazine.com AT 11:34 am   |  Permalink   |  Email
Monday, September 30 2019
Ports Take Advantage of FTZ Alternative Site Framework for Economic Development

By Meredith Martino, AAPA

A consumer in the market for new pair of eyeglasses might find interesting a banner ad on a website touting designer eyewear at a discounted price. The promise might sound too good to be true to the average shopper, but the reality is one that is not only possible but actually is encouraged by a growingly popular new option under a decades-old U.S. government program. By utilizing some of the benefits of a FTZ and taking advantage of the program’s Alternative Site Framework (ASF), a U.S.-based producer could incorporate well-known designer frames and cases manufactured overseas into a finished product that could be passed onto a U.S. consumer at a lower cost.

Vision care products manufacturer Coastal.com is doing just that. Founder and CEO Roger Hardy saw a business opportunity in the markups charged by opticians and optical stores and passed onto consumers. He created a business-to-consumer model that would keep costs down for the end user of the vision products. The Canadian-based company continues to grow, reaching consumers throughout the world.

Posted by: Nicole@ExpansionSolutionsMagazine.com AT 11:27 am   |  Permalink   |  Email
Monday, September 30 2019
Outdoor Recreation Tourism - The Motor Driving Rural Economies of the Future?

By Rachel Selsky, AICP, Camoin310

Introduction
Many medical experts tout the benefits of getting outside on a regular, but have you ever considered the potential benefits of focusing your economic development efforts outside as well? It may not be a bad idea considering that the United States has seen an increase in overall participation in outdoor recreation activities, typically categorized as motorized or non-motorized, over the past few decades. 

While non-motorized outdoor recreation activities like hiking and biking are well documented and studied in relation to growth, economic impact, attraction strategies and the benefits to communities, motorized outdoor recreation activities are generally thought of as a smaller component of the overall industry and are somewhat less studied. As more rural communities begin to promote outdoor recreation tourism as a component of their economic development strategies, it is increasingly important to understand the full spectrum of opportunities related to outdoor tourism, including those within the motorized recreation sectors and how to best encourage and support their growth. 

Posted by: Nicole@ExpansionSolutionsMagazine.com AT 11:22 am   |  Permalink   |  Email
Monday, September 30 2019
The Right Location for Metal Fabrication? Near You

By Mark R. Smith, Contributing Writer

The fabricated metal industry is, in a way, similar to other industries, perhaps like the printing industry. That’s to say, the products each produces seem ubiquitous.

During the average person’s stops during the day, you may well see printed items: books, publications, brochures, folders, bills, mail, business cards, labels, etc. That list could go on, as it can for metal fabrication. Think about desktop computers, tablets, smartphones, door latches and handles, screws and nails, faucets, railings, hangers, etc.

You get it.

The point is in both industries, raw materials, software, equipment, deep thought and some elbow grease are required to create an infinite amount of finished products that many of we human beings use daily.

Posted by: Nicole@ExpansionSolutionsMagazine.com AT 11:15 am   |  Permalink   |  Email
Monday, September 30 2019
The Next Digital Economy

By Don A. Holbrook

Economic development has traditionally been slow to respond to trends and then when they do they are usually behind the wave. The same could be said of the approach by in large for attracting investment into the Digital Media Age. Too many of the legislated programs in the USA, this vision is Films and Digital Productions of Film based industries in the world of the silver screen old school images of Hollywood productions.

George Gilder recently wrote his latest prediction on this real topic of Digital Media and/or the Digital Economy, called “Life After Google.” States such as Connecticut, Louisiana, Texas and New Jersey pop up on the first page of Google searches under this subject, but the links lead to film credits for the most part. This old school vision is not where the hotbed of growth is occurring and/or going to continue to grow.

Posted by: Nicole@ExpansionSolutionsMagazine.com AT 10:50 am   |  Permalink   |  Email
Monday, September 30 2019
​​​​​​​Making Your Next Back Office Location a Success

By Dennis J. Donovan, Wadley Donovan Gutshaw Consulting

Introduction

Back offices comprise an agglomeration of support activities that are pivotal to successful operation of corporate (and not-for-profit) enterprises. These business units typically support c-suite and client interfacing operations.  Among functions usually associated with a back office are accounting, payroll, recruiting, planning, inventory management, procurement, regulatory compliance, supply chain management, market research, document management, transaction processing, inside sales, customer service, and IT help desk.

This article addresses the keys to optimal geographic deployment for back office entities. Up first is a brief discussion on strategic considerations that proceed an initiative to uncover the ultimate location. Then we outline the key elements involved in establishing the framework for a back-office location analysis. Subsequently, the multi-phase process that should be followed to land in the best spot is outlined.

Posted by: Nicole@ExpansionSolutionsMagazine.com AT 10:44 am   |  Permalink   |  Email
Monday, September 30 2019
Business Aviation Embraces Technologies for Cleaner, More Efficient Travel

By Ed Bolen, president and CEO of the National Business Aviation Association (NBAA)

Business aviation has long been a valuable tool for connecting companies and communities of all sizes across the nation and throughout the world. The industry also continues to embrace new technologies offering the potential to not only increase the level of productivity that business aviation may provide, but also to perform these roles with an even greater emphasis on sustainability.

This is a very exciting time, and not only for the National Business Aviation Association (NBAA) and members that already utilize business aviation to increase their efficiency and competitiveness. Citizens, service providers and urban planners in communities large and small also stand to benefit, as these developments offer the promise to advance metropolitan transportation infrastructure, emergency response and quality of life considerations across the country and around the world. Urban Air Mobility May Revolutionize Intercity Transportation Over the past few years, a new transportation segment has emerged alongside more traditional business aircraft and rotorcraft seen at NBAA-sponsored events. Urban air mobility (UAM) aims to revolutionize travel across large metroplexes, utilizing optionally piloted and even fully autonomous electric vertical takeoff and landing (eVTOL) vehicles to transport on-demand passengers and cargo.

Posted by: Nicole@ExpansionSolutionsMagazine.com AT 10:06 am   |  Permalink   |  Email
Monday, July 29 2019
Putting Down Roots In the Ag Industry

By Mark R. Smith, Contributing Writer, Expansion Solutions Magazine

Site selection professionals and their clients who are working to locate a growing agriculture-based business know making that major move dictates understanding a few facts before key decisions are made.

Since an agriculture businesses might need land, and lots of it − or at least be in a market with a multitude of farms − they’ll see that land is cheaper in less-densely populated areas, for a reason: perhaps the lack a strong workforce and relatively few educational opportunities, or connectivity problems and a lack of amenities in a given locales. Or a combination thereof.

Then comes the more recent but growing issue of climate change, which can work for or against a company.

Posted by: Nicole@ExpansionSolutionsMagazine.com AT 11:11 am   |  Permalink   |  Email
Monday, July 29 2019
Locating High Technology Operations

By Dennis J. Donovan, Wadley Donovan Gutshaw Consulting (WDGC)

This article addresses location dynamics within the high technology sector. The term high-tech is rather amorphous. Broadly speaking it can apply to any industry wherein advanced technology (such as Industry 4.0) is widely utilized. To provide a pragmatic framework for illuminating site selection strategy and trends we will adopt a more nuanced definition of high technology. Essentially high tech embraces a group of industries characterized by a rapid pace of innovation. These industries typically involve a high concentration of workers in STEM fields (science, technology, engineering, and mathematics). For purposes of this article high-technology industries include the following:

Posted by: Nicole@ExpansionSolutionsMagazine.com AT 05:55 am   |  Permalink   |  Email
Monday, July 29 2019
Recent and Emerging Trends in Forestry and Lumber

By Jim Damicis, Senior Vice President, Camoin Associates

To understand economies and industry sectors related to forestry and lumber it is important to first understand the significance of forests to the U.S. economy. Forests after all are where wood comes from. “Global forestry issues are of considerable significance to the United States, which has five percent of the Earth’s population and consumes an estimated 28 percent of the Earth’s industrial wood products. Although domestic timber inventory is only 10 percent of the Earth’s total, 96 percent of U.S. consumption of industrial wood comes from domestic supplies.1” In the U.S., the majority of the forests are privately owned with an estimated 58 percent of forest acreage owned privately by corporations or individuals; however, ownership patterns are quite diverse with public forests dominant in the West and private forests dominant in the East. Private industrial forest ownership is concentrated in the South, Pacific, Northwest, upper Lake States, and northern New England2.

Source:  U.S. Forest Service- www.fs.fed.us/sites/default/files/forest-ownership-map.png

Posted by: Nicole@ExpansionSolutionsMagazine.com AT 02:22 am   |  Permalink   |  Email
Sunday, July 28 2019
It's Not Your Dad's Logistics Anymore

By Michael D. White, author and freelance writer

Confined to non-descript, drab buildings clustered in unappealing urban backwaters, warehouse and distribution operations once considered a straight-forward and relatively simple activity involving nothing more complicated than a hand truck or a forklift have evolved into petri dishes for new technologies that have revolutionized the task of moving a product from Point A to Point B economically and efficiently in the least amount of time.   

According to a recent study of the distribution/warehouse sector commissioned by the Deloitte Center for Financial Services, the demand for distribution centers and other industrial real estate is expected to grow by 850 million square feet from 2019 to 2023, to 14.8 billion square feet, compared with demand growth of 870 million square feet from 2014 to 2018.

Deloitte said availability of warehouse space is likely to rise to 10.3 percent by 2023, compared with seven percent in 2018, as changes in the way people shop have reshaped distribution networks with retailers and logistics providers racing to compete with Amazon, open distribution warehouses and sprawling online fulfillment centers, strategically sited near major population centers and transportation hubs.

Posted by: Nicole@ExpansionSolutionsMagazine.com AT 03:33 pm   |  Permalink   |  Email
Sunday, July 28 2019
Solar: A Prime Opportunity for Commercial and Industrial Real Estate

By Dan Whitten, Vice President of Communications, Solar Energy Industries Association

Prominent announcements from companies such as Apple, Walmart and Target of installing solar on their facilities has made the rest of the commercial and industrial sector take notice. And the message is that, in many places, solar is now a cheaper way to power buildings than the alternatives. That’s why we are seeing broad investment from companies large and small.

Solar has grown by leaps and bounds  in the last decade. Initially a solution for select homeowners, and later a low-cost option for utility-scale projects, solar energy is now coming to a commercial facility near you. And if you look closely enough at the opportunities, it may very well be a solution for your own company. 

Posted by: Nicole@ExpansionSolutionsMagazine.com AT 01:44 pm   |  Permalink   |  Email
Sunday, July 28 2019
Workforce Development: Finding Talent in Today's Hyper-Competitive Labor Shortage

By Chris Engle, Vice President, Avalanche Consulting

This article discusses the realities and response to the labor environment seen across the U.S. today. Companies can sharpen their toolkit in evaluating labor markets and finding a current and future workforce. Educators can better understand the needs of companies, particularly in hard-to-fill positions requiring technical or specialized skills. Economic and workforce developers can deploy new attention to the development of talent from within their communities in addition to attracting workers. Collectively, we can all learn how a high-performing economy must be continually supplied with a labor force that is dynamic, responsive, and innovative despite the challenges brought on by technology, demographic change, and uncertainty.

First, let’s take a closer look at today’s labor environment. We have written several articles in recent years about the declining unemployment rate and its impact on industries. Today’s unemployment rate now stands at 3.6 percent, the lowest registered rate in 50 years. We now consistently hear across every part of the country and economy, from highly skilled industries to entry level hospitality, that employers can’t find the workers they need. The low unemployment rate is a function of labor participation, i.e. the number of people seeking work.

Posted by: Nicole@ExpansionSolutionsMagazine.com AT 11:11 am   |  Permalink   |  Email
Monday, June 03 2019
Call Center Location Trend Report 2019

By  King R. White, CEO, Site Selection Group, LLC

Introduction

As companies seek to find the optimal location for their call center operations, understanding historic growth trends can help to develop onshore, nearshore and offshore location strategies. In 2018, Site Selection Group identified 310 new and expanding call center projects that created 145,847 jobs as well as 107 call center projects involving 21,966 jobs that were downsizing or closing their facilities. By analyzing this data, Site Selection Group has identified regional location trends that are summarized in this report. 

The call center industry continues to expand globally as companies seek the optimal balance of labor availability, labor costs, geopolitical stability and business climate. The Call Center Location Trend Report provides an analysis of global location trends to help you understand the onshore, nearshore and offshore geographies that might be the best location for your next call center. 

Posted by: Nicole@ExpansionSolutionsMagazine.com AT 01:31 pm   |  Permalink   |  Email
Monday, June 03 2019
The Transforming World of Science and Technology Parks

By Don Holbrook, Site Location Advisor

The original concept of Science and Technology parks has been going through a frantic evolution just like the field of technology and knowledge-based products and services that underpin the entire foundation of this area of economic development.

We as individuals are becoming ubiquitously interconnected to everything – work, friends, family and our entire activity and consumption based agenda, whether for our career, relaxation and entertainment or just daily choices in lifestyle through our preferred networks of information suppliers. Science and Technology Parks are also evolving away from simply places for place-based investment that marries academic culture to corporate culture. These locales have traditionally been tasked with assisting innovation and high tech entrepreneurs with federal policies so that funding can be achieved by overcoming barriers to compliance regulations. According to Brian Darmody, Associate Vice President of Research and Economic Development, for the University of Maryland’s technology development initiative, “Entrepreneurs tend to be non-compliant people, which is why they are innovators.” 

Posted by: Nicole@ExpansionSolutionsMagazine.com AT 11:22 am   |  Permalink   |  Email
Monday, June 03 2019
The Nation's Steel Arteries

By Michael D. White, author and freelance writer

Now spanning a staggering total of more than 140,000 miles of trackage, the network of steel veins and capillaries crisscross the U.S. connecting 49 of the country’s 50 states with each other, as well as Canada and Mexico, carrying the very life’s blood of its vast and complex economy, and, in turn, linking virtually every point in the nation with deep-water ports on four coasts and, thence, with markets and suppliers across the globe. 

According to the Washington, D.C.-headquartered American Association of Railroads (AAR), U.S. freight railroads annually carry nearly 54 tons of freight per American—a staggeringly vast assortment of goods from bananas, steel wire, and automobiles to soybeans, sporting goods and home appliances.

Posted by: Nicole@ExpansionSolutionsMagazine.com AT 11:16 am   |  Permalink   |  Email
Monday, June 03 2019
Ports Large and Small Initiating Workforce Development Programs

By Aaron Ellis, APR, Fellow PRSA, Public Affairs Director, American Association of Port Authorities

Seaports, large and small, are developing programs to introduce their community’s youth, together with new and transitioning job seekers, to the diverse, technology-focused and family-sustaining career opportunities available in the maritime and seaport environment. 

A just-released economic impacts analysis of the U.S. coastal port system by Martin Associates (Lancaster, Pennsylvania), cites the average annual salary for those employed at America’s seaports has risen to $62,800 from $53,723 just five years ago. The number of jobs that seaport activities support also jumped from 23.3 million to 30.8 million in the same time frame. 

The Port of Los Angeles, America’s largest-volume container port, cites numerous reasons why it has chosen to focus time and resources on creating a world-class workforce development program.  

Posted by: Nicole@ExpansionSolutionsMagazine.com AT 10:23 am   |  Permalink   |  Email
Monday, June 03 2019
Food and Beverage Processing Trends in 2019

By Jay Garner, CEcD, President, Garner Economics LLC

Much is changing in the food and beverage (F&B) processing sector. Yet, much has stayed the same from previous years. What’s changing and why? First, consumer preferences always dictate how food manufacturers create new products, which often times results in new production facilities, or at the very least, a shift in production lines (which is a significant equipment expense). And with millennials and Generation Z consumers driving much of the product changes, expect even more product evolution for healthier, better-for-you foods.

But first, let’s go through the numbers. Nearly two million people across the United States work in the F&B sectors, according to the Bureau of Labor Statistics. Combined from both sectors (food processing and beverage processing), there are about 43,000 companies that are defined as F&B facilities in the United States (this does not include cold storage establishments). California leads the way with nearly 6,500 facilities employing more than 220,000 workers, followed by New York, Texas, Illinois, Florida, Washington, Pennsylvania, Oregon, New Jersey and Michigan rounding out the top 10. Growth in the F&B sector is rising more rapidly in beverages, but with continued changes to a healthier diet, evidence is pointing to new growth in the food sector.  

Posted by: Nicole@ExpansionSolutionsMagazine.com AT 09:52 am   |  Permalink   |  Email
Monday, June 03 2019
Life Science's Changing Landscape and the Rise of the Underdogs

By Mackenzie Hastings, Business Development Manager, InSyBio, InSyBio.com; Angelos Angelou, Founder & CEO, AngelouEconomics, AngelouEconomics.com

It is no surprise we are seeing a renewed investment in the Life Sciences industry along with an accelerated growth plan. Tech has been slowly creeping its way into the circle for years and has enabled – through AI and machine learning – the fast-tracked optimization of analysis and the exponential expansion of application areas in both pharma and biotech.

Although many look to foresee the future and divine the most profitable answers, the trend of innovation through technology has been the steady, safe route and those who search without tunnel vision are likely to find treasure in the many upcoming disruptors to the industry and more importantly, the cities that entice them.

You might ask “Are start-ups really becoming so powerful?” and “Is this shift in the industry truly significant?” The short answer is yes, although for multiple dynamic reasons. Innovation is, in essence, a new method or idea so it is only fitting that the upper hand on that front lie in the young companies fighting for a niche advantage in the market and that the underdog cities in which they choose to establish be technologically noteworthy themselves. They must foster environments for innovation and collaboration while also offering competitive benefits when it comes to quality of life and how far the investment money can propel these companies toward profitability.

Posted by: Nicole@ExpansionSolutionsMagazine.com AT 09:25 am   |  Permalink   |  Email
Thursday, May 02 2019
Food and Beverage Processing Trends In 2019: So Much is Changing - So Much Has Stayed the Same

By Jay Garner, CEcD, President, Garner Economics LLC

Much is changing in the food and beverage (F&B) processing sector. Yet, much has stayed the same from previous years. What’s changing and why? First, consumer preferences always dictate how food manufacturers create new products, which often times results in new production facilities, or at the very least, a shift in production lines (which is a significant equipment expense). And with millennials and Generation Z consumers driving much of the product changes, expect even more product evolution for healthier, better-for-you foods.

But first, let’s go through the numbers. Nearly two million people across the United States work in the F&B sectors, according to the Bureau of Labor Statistics. Combined from both sectors (food processing and beverage processing), there are about 43,000 companies that are defined as F&B facilities in the United States (this does not include cold storage establishments). California leads the way with nearly 6,500 facilities employing more than 220,000 workers, followed by New York, Texas, Illinois, Florida, Washington, Pennsylvania, Oregon, New Jersey and Michigan rounding out the top 10. Growth in the F&B sector is rising more rapidly in beverages, but with continued changes to a healthier diet, evidence is pointing to new growth in the food sector.

What’s Not Changed?

  1. Food safety is of paramount importance to the health of consumers, and the financial health of F&B companies. The Food Safety Modernization Act (FSMA) was signed into law in 2011 and gives the FDA authority to regulate the way foods are grown, harvested and processed. The law grants the FDA a number of new powers, including mandatory recall authority. The law was prompted after many reported incidents of foodborne illnesses during the first decade of the 2000’s and was largely crafted by members of the Grocery Manufacturers Association. Tainted food has cost the food industry billions of dollars in recalls, lost sales and legal expenses.
  2. Health and wellness foods. Though this trend began in the first part of the 2000’s, it continues to transform and evolve - significantly. Though all age demographics are causing this, including an aging baby boomer population that is health conscious, the millennial and Generation Z age groups are driving the push. Companies like Hershey and General Foods have announced plans to expand their portfolios to appeal to younger consumers who want healthier snacks. Probiotics are attractive to food companies and are making their way into a variety of foods, not just yogurt. Again, not new since the trend has been around for at least 10 years, but clearly adapting and evolving.
  3. Beverages. Sugar is the devil and conventional sugar soft drinks have been on a downward spiral with sales for several years. There is an  increased and still growing demand for energy drinks and beverages infused with nutraceuticals, e.g. vitamin water, green teas and fruit drinks. This has an impact on product lines and beverage processing facilities as companies either re-tool the lines or build new facilities.
  4. Sustainability first got its legs in the 1990’s with environmental activists as a way for the populous to understand how what we eat, how it’s grown and packaged, have an effect on the environment. Over time and through significant media attention sustainability has garnered over the years, shoppers have been willing to pay more for sustainable practices as a way to feel they are helping the environment. Many large F&B companies, including Walmart, have announced sustainability efforts from processing to packaging. Compostable packaging is getting more shelf space, which means that this packaging sub-sector offers promise for economic development practitioners looking for new target industry opportunities.

What’s New or on the Horizon?

  1. Cannabis. Yes, weed. The Farm Bill of 2018 legalizes the cultivation of hemp, a plant in the cannabis family. Derivatives of hemp such as CBD (cannabinoid), is known as an aid for relaxation, anxiety and pain. It is no longer illegal, but the FDA still prohibits food and beverage products with CBD ingredients from crossing state lines. As soon as that prohibition ends, and it will eventually, there will be a rush for companies to incorporate ingredients of CBD into food products. Marijuana is now legal in 33 states and the District of Columbia. Industry watchers and government lobbyists believe it will receive full federal legalization by 2021. That also depends on elections.
  2. Mergers and acquisitions (M&A) are new and old. During the Great Recession of 2009, many mid to small sized F&B companies were bought out by larger companies, or they went out of business. With the hot economy we are now experiencing, M&A activity is at a feverish pace.  Companies like Conagra, General Mills, Campbell Soup, Coca-Cola, and Nutella have all made recent acquisitions. Those that were sold or acquired include Blue Buffalo Pet Foods, Pinnacle Foods, Snyders/Lance, Costa Coffee, and on and on.  These acquisitions may mean that new product lines are being considered and new locations. Any time there is an M&A, it opens the possible door for a new location for an F&B facility. Economic developers, take note!
  3. Plant-based meat is a new phenomenon. The days of the veggie burger are gone. This new process and science combine aminos, minerals, lipids and water and give it a meat texture and taste. Hamburger chains have latched on to it, including White Castle. Fish is next. New product lines equal new locations. Check out The Beyond Burger by Beyond Meat at your favorite grocer.

What About Cold Storage Facilities (Refrigerated Storage)?
Cold storage units are not technically part of the food and beverage family and have a different NAICS (North American Industry Classification System) code (49312). But cold storage facilities are an integral and necessary part of the F&B supply chain. At the end of 2018, cold storage facilities employed 56,000 people with over 1,600 businesses in the U.S. Wages for this industry are over $2.6bn and annual revenue is in excess of $5.9bn. Is there any wonder why economic developers, communities and electric utility providers don’t have these companies on their radar as a targeted industry sector? A “typical” new cold storage facility investment may have a capital outlay of over $60mm and 50-75 jobs. In a very tight labor market, this type of project is ideal for communities.

Site Selection Requirements: What does all of this mean for your community and economic development professionals working to attract F&B and cold storage facilities to a locality? New trends, processes and products typically mean new opportunities. Often a new product line could mean a new facility, based on an existing facility’s footprint. So, what are the key factors needed in attracting F&B companies?

  • Water and wastewater treatment capacity. Simply put, no water, no project. Water is the most important ingredient in the site selection process for F&B companies. If it’s not used as an ingredient, it is always used for sanitation. Having excess water capacity of 500,000 MGD is a start.
  • Low or competitive energy rates. F&B companies and cold storage facilities are big users of energy. Having competitive electric and gas rates are important.
  • Access to four-lane roads. An interstate location will trump a non-interstate location. Four-lane access roads will always trump two-lane roads. Gas and diesel are big components of energy costs, and accessibility has a direct impact on operating costs.
  • “No product – No Project.” Shovel ready sites are needed for speed to market.  An existing USDA/FDA grade building is a benefit, depending on the size, but hard to find. Eighty-five percent of all new F&B site searches start with a desire to find an existing facility. It’s rare that one is found, so those searches turn into a greenfield project.
  • A workforce within a 45-minute drive time of those key occupations that F&B companies consider necessary is a  benefit. Talent is always important.

These are the essential ingredients that will allow communities to compete effectively in this constantly growing sector.

Food and beverage company executives consider the factors listed below as what’s on their mind most days, and in this order (according to foodprocessing.com, 2016):

  • Food safety
  • Cost control
  • Automation
  • Worker safety
  • Capacity expansion (that’s a direct impact for economic developers)
  • Environmental/sustainability issues
  • Training
  • Sourcing (where is the commodity coming from?)

Understanding what drives these decision makers of food and beverage companies will help economic developers craft the narrative and value proposition for your community. Good hunting!

Sources: Bureau of Labor Statistics; Food Dive; foodprocessing.com; Ibisworld

About the Author:
About Jay Garner: Jay A. Garner, CEcD, CCE is the president and founder of Garner Economics LLC, an economic development and site location consulting firm headquartered in Atlanta, Georgia, with representative offices in North Carolina; Berlin, Germany; and Seoul, Korea. Jay often lectures and provides counsel on creating and implementing proactive global business development strategies and tactics. His firm is also a leader in assisting corporate clients such as Anchor Glass, Academy Sports, Hatfield Quality Meats, Hill’s Pet Foods, Stork Food Systems, Future Pipe Industries, and others in their site selection process.

Garner Economics and Primus Builders have partnered to create one of the most extensive site certification initiatives in the economic development and Food & Beverage sector. Their goal is to help communities prepare for the location of F&B projects, which also helps companies in that industry sector (many of whom are our current clients) understand that a community’s site or building has met Primus/Garner's rigorous review requirements. To learn more about the Primus/Garner Food Site Certification designation, see the link at https://garnereconomics.com/services/food-processing-site-certification.

About Garner Economics LLC:
About Garner Economics LLC: We are data driven strategists helping companies, communities and organizations, large and small, urban and rural, achieve success. The firm offers location advisory analysis, analytical research, industry targeting, strategic planning and organizational assessments with a wealth of expertise to companies, communities, and organizations globally.

Posted by: Nicole@ExpansionSolutionsMagazine.com AT 11:21 am   |  Permalink   |  Email
 

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