1. Economic Development Site Selection Seminar: Is your Community Ready? Buckeye Power Economic Development Site Selection Seminar November 7, 2006 Winning the Relocation Game – Part 1 September 7 th, 2011 Ed McCallum, Senior Principal

2. Today’s Discussion Introduction to McCallum Sweeney Consulting, Inc. Beyond traditional recruiting –Advanced manufacturing clients –Non-manufacturing clients –Consolidation projects Changes in metrics that companies use to evaluate a location Examining non-traditional supplier/vendor opportunities that result from a successful site location of a large manufacturer How communities can better prepare to respond to site consultant’s needs/requests

3. MSC Overview Specializes in site selection and incentive negotiation services Established in July 2000 by Ed McCallum and Mark Sweeney Brings more than 50 years of combined location consulting experience to our clients worldwide Provides clients with uncompromised service, conducting site selection and incentive negotiations with the highest standards of integrity

4. Introduction

5. Introduction Economic Development Clients Charleston Regional Development Alliance

6. Introduction Private Sector Clients Kasle Steel Boy Scouts of America SGL Automotive Carbon Fibers LLC joint venture American Titanium Works

8. Beyond Traditional Recruiting

9. Needs/Drivers for: –Advanced Manufacturing –Non-Manufacturing –Consolidations

10. Beyond Traditional Recruiting Advanced Manufacturing –those industries that use advanced planning and scheduling and also integrate high levels of technological sophistication throughout the entire manufacturing process in order to gain increased value and productivity. This pretty much covers all manufacturing these days

11. Beyond Traditional Recruiting Advanced Manufacturing –Workforce development –Business climate (incent to invest) –Logistics (entire spectrum) –Robust infrastructure –Knowledge of the supplier network/capabilities –Culture of innovation

12. Beyond Traditional Recruiting Non-Manufacturing –Business climate (incent to invest) –Logistics (entire spectrum) –Robustness infrastructure –Workforce development –Knowledge of the supplier network/capabilities –Culture of innovation

13. Beyond Traditional Recruiting Consolidations General Comments –Lean times have made this fertile hunting –Usually conducted in secrecy and confidentially –Less chance of a site search (no open competition) –Not having a branch plant is NOT a disadvantage –Having a branch plant may NOT be an advantage either

14. Beyond Traditional Recruiting Consolidations –Usually cost driven –Multiple options –Labor environment is scrutinized intensely –Breaking even is the desire, actually doing it usually lands the project –Soft advantages can be overcome with incentives (not just cash)

15. Changes in Metrics Used to Evaluate a Location

16. Changes in Metrics for Site Selection Leaner organizations mean more consultant/broker projects Workforce availability and quality Speed to market is paramount –Get your act together in advance Technology advances creating more start-ups (so is lack of capital) –Consequently more opportunity –Not just training programs anymore Preservation of cash for a rosier future impact decisions? Partnership are important (all aspects)

17. Changes in Metrics for Site Selection

18. The Old Way The New Way

19. Changes in Metrics for Site Selection Planning Phase Phase I Phase II Phase III X X X X

20. Changes in Metrics for Site Selection Category Market Logistics Infrastructure Business Climate Labor Cost 1 6 54 3 2 IMPLICATIONS Neither state nor community has any input We can do this in a day When I contact you – you are a finalist I have selected you as a region If you have no product – eliminated If you cannot meet project schedule – eliminated If you cannot sell your region - eliminated If a professional is not doing this – you may never get on the list

21. Examining Non-traditional Supplier/Vendor Opportunities that Result from a Successful Site Location of a Large Manufacturer

22. Insert Auto Plant Location Map

30. How Communities Can Better Prepare to Respond to Site Consultant’s Needs/Requests

31. Community Preparation for Recruitment The Main Thing : Attracting Investment and Jobs is More Competitive than Ever, and …

32. The Other Thing: Being Prepared Creates Competitive Advantage Community Preparation for Recruitment

33. Product Development ( Sites and Infrastructure) Basic need for growing companies “Dirt Won’t Do” –“Property” does NOT equal “Site” Location decision demands speed –Site selection and facility start-up Be prepared – maintain a portfolio of ready, available sites

34. Product Development Sites and Infrastructure Severcorr Steel Columbus, MS Rural community Demanding site specs Community proactively prepared –Site certification $600 million (now $800 million) 450 jobs (now 600)

35. Organization Development Vision and Strategic Plan Vision and plan –Know where you are –Know where you want to be –Know how to get there Links the community and the economic development team Be prepared – commit to visioning and strategic planning Commit to product development to be able to win when the opportunity arises

36. Organization Development Training Staff development –Professional training –Local courses and seminars Leadership development –Participate as student in economic development training –Participate in national/international conferences –Participate in sales and trade missions Everyone is a stakeholder in economic development

37. Organization Development Funding Funding –Secure –Reliable –Adequate –Long term –Broad participation/broadly supported –Flexible and discretionary Avoid too much “earmarking” –Sometimes you have to accept sunk costs Infrastructure Land etc

38. Organization Development Regional Approach Support regional efforts –Region has larger, more diverse set of assets –Supports more effective marketing Message – greater overall mix of assets and greater presence of strengths Financial –Better alignment with site selection decisions Many critical decision factors are considered and evaluated on a regional basis –Labor markets –Infrastructur e

39. Sales and Marketing Development Market Segmentation Investment and jobs from outside –Recruitment Addt’l investment and jobs from inside –Expansion / retention New investment and jobs from inside –Entrepreneurial development Be prepared – position for all segments Be Selective – know what you can win and should win

40. Product knowledge - Know your community - Strengths and weaknesses Customer knowledge - Know your customer (industry, company) - Opportunities and threats Sales skills - Communication skills ( listening !) Sales and Marketing Development Sales Training

41. Sales and Marketing Development Prepare for Phase II Interface Industry and community leaders –Existing industry and businesses Private interviews Most important source of information –Community leaders Elected and private leaders Represent community and government Subject to “managed access” to prospect

42. Summary

44. McCallum Sweeney Consulting Ed McCallum Senior Principal McCallum Sweeney Consulting 550 S. Main Street - #550 Greenville, SC 29601 864-672-1600 864-672-1610 (fax) emccallum@mccallumsweeney.com www.mccallumsweeney.com