| Investment Attraction is a strategy focusing on bringing new business investment to a community. Municipalities that have succeeded in their investment strategies, targeting either commercial or industrial retention or attraction, have identified a number of key components in their plans:
- attracting investment based on community strength
- optimizing the municipality's public resources
- develop supply chain and multiplier-effect linkages
- establish and take advantage of cluster-related synergies
- continually innovate and improve productivity
- invest in human capital
The following discussion is intended to help municipalities understand the requirements of site selectors or companies searching for a new business location. Similar principles apply when a company is considering an expansion of current facilities.
A Company Perspective
A company's strategic decision to expand or relocate is based on the consideration of many alternatives. Decisions are based on good information, accurate comparisons and detailed evaluations which result in locating a situation that gives the company a competitive edge.
Investment Site Selection Needs
Investors consistently look for certain traits in prospective locations. For example, competitive access to markets and raw materials are extremely important to business success, as are public infrastructure support. Decisions and considerations are based on facts, and an objective assessment of the characteristics and features of the area.
To develop and implement an investment attraction or retention strategy successfully, a community must follow several key steps.
- Gather and maintain relevant information. The appropriate data must be easily and immediately accessible. Often, investment searches have strict deadlines. Quick response times have been shown to improve a municipality's chance of acquiring the investment. Most of the information needs of investment inquiries are similar. Therefore, anticipate the inquiry and maintain an accurate and up-to-date file.
Investment clients typically request details related to the following:
- existing infrastructure, plans for development, and projected capital allocations
- regulatory and environmental compliance requirements
- competitive transportation opportunities and alternatives
- "ready-to-go", pre-screened, serviced and adequately zoned sites
- human resources, and workforce development delivery system
- ready access to key suppliers and support services
In addition, food processing and manufacturing companies that rely on agricultural resources also ask for information on:
- amount and suitability of land available for primary production;
- grower base (number and proximity of producers); and
- agricultural training delivery system
- Communicate with the investment community. The Ontario Investment Service website (http://www.2ontario.com/) is an excellent starting point. This internationally recognized investment tool is a reference point for professional site location companies.
- The Ontario Ministry of Municipal Affairs and Housing has prepared
a docment entitled Municipal
Readiness for Economic Development. This resource is intended
to assist small and medium sized municipalities:
- identify the changing needs of business;
- assess individual planning and development systems; and
- identify opportunities for improvement and for attracting new development.
This checklist is one tool which will allow your community to assess
its readiness for economic development and investment attraction.
Click
here to access the checklist.
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Common "Tombstone" Screening Criteria for Investment Inquiries
Site locators and companies looking to establish a new business in a community generally make their assessments based on a number of key criteria.
Labour:
- Community population, projected growth, size of labour force and availability
- Wage levels, average manufacturing wage rates
- Level of education, presence of specialized skills
- Current employers in the community with sector breakdown
- Labour management – relations issues
- Training capabilities, programs, facilities (community college, tech school, high school)
- Catchment area for potential labor, commuting times
- Unemployment figures and underemployment estimates
- Laws and regulations regarding hiring practices, wages, benefits etc.
- Percentage of unionized companies in the area
- Average income level
- Employment Standards Legislation
Real Estate/Accessibility:
In order for a municipality to attract a top quality manufacturer, it needs to develop and create first class sites. Information related to the following factors will be requested:
- Inventory and availability of existing buildings and manufacturing facilities
- Availability of serviced land (acreage) municipally and privately owned with listed price
- 400 series highway and interstate highway border point accessibility
- Zoning and land use of property, both current and previous
- Proximity of land to schools, residential and commercial or incompatible industrial uses
- Municipal tax rates, development charges etc.
Infrastructure and Planning:
- Proximity to airports, highways, rail and ports
- Utilities (gas, hydro, network cable), location in relation to property, size, capacity
- Water supply & wastewater treatment (available capacity) size of pipes, proximity to industrial property, billing structure, surcharge rates;
- Rail accessibility
- Potential for sewer expansion and list of future capital upgrades
- Permit approval process and expected timelines
Logistics:
- Proximity to markets, distances, shipping times to various distribution centers or hubs
- Access, distance, travel time to border crossings
- Access to raw materials
- Region access, center of sales activity, suppliers, vendors
- Freight costs
Financing and Services:
- Local, provincial, federal funding programs
- Human resources training support
- Business financing options
- Financial lending institutions
- Availability of lawyers, accountants and doctors
- Industrial suppliers, vendors
Quality of Life:
- Cost of Living (e.g. housing costs)
- Average commuting times
- Quality of schools, healthcare
- Median income level
- Culture and Recreation
- Landscape and Natural Amenities
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Strategic Communication Resources
The following websites are key resources in the area of investment
attraction and business recruitment.
The Ontario Pilot Provincial Nominee Program (Pilot PNP) is Ontario’s
first-ever nomination program. The Pilot PNP is designed to contribute
to job creation, job retention and economic development by attracting
new investment, and by helping employers in targeted sectors to attract
and retain qualified employees for jobs for which there are currently
labour-market needs. The Pilot PNP also supports government priorities
by facilitating the immigration of professionals in the health care and
education sectors.
The Ministry of Citizenship and Immigration provides many programs and
services to help newcomers settle, build their careers, further their
education, and become a vital part of the community.
EnviroChannel is an occasional service offered to environment companies
by ONEIA to help them share news of their products and services with others
in the environment field.
This tool box is intended to help communities that wish to attract
and retain newcomers
This comprehensive, web-based employment portal holds province-wide
job opportunities for nurses and physicians seeking employment in Ontario.
The Sites Ontario website contains a wide range of community profiles. It also contains provincial and local business investment information of interest to site locators and business executives. This is an internationally recognized site used extensively by professionals involved in making or recommending site location decisions. Community profile information from any Ontario community should be on this site, if that community has an investment attraction strategy.
A web portal that addresses the needs of facility owners, owners, managers and other key executives who are seeking to streamline their relocation / expansion projects.
Area Development Magazine is the worlds leading magazine and information source for site and facility planning, simplifies the important criteria required for making new industrial and corporate facility decisions. Each month, Area Development identifies and analyses critical questions and trends and presents analysis that make the difference between a cost-effective location choice or a costly error.
Business Expansion Journal is dedicated to delivering decision support tools to companies active in the site selection process.
This magazine's editorial mission is to publish information for expansion planning, decision-makers, CEO's, facility planners, human resource managers and consultants to corporations. Conway Data manages seminars, and education and research programs. Site Selection is a true data base publication that is designed to report on what is happening, where and why.
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