GEOStrategy

Insights

Inbound Investments

Key to success in investment recruitment is understanding the decision-drivers of the investors and the unique assets of the investment destination in terms of workforce availability and talent, business costs, raw materials/suppliers, logistics, the regulatory environment and inducements for investment.

The site selection RFI focuses on cataloging the assets of an investment destination, but may not fully uncover project decision-drivers, why the company is expanding or relocating, what specific concerns and preconceptions decision-makers bring to the table, and timeline. The size and complexity of the project and the schedule the company has allowed for a go/no-go decision related to a specific location may mean an all-hands-on-deck approach to the addressing project needs. Competition for best projects means that locations compete against each other and attempt to learn what other locales have offered as inducements. In reality, few locations have sunshine laws in place that require agencies to divulge what specific inducements have been offered a potential investor. While statutory incentives are usually known and named, discretionary incentives which are evaluated on a case by case basis, are not transparent. Site selection consultants know what’s possible given project size and scope, and communities with good recruitment consultants can be judicious in the use of targeted incentives to “select the best” in terms of projects and get the best results for discretionary dollars spent.