Perry Varnadoe
A fundamental rule of advertising states that you don't get a second chance to make a good first impression. This adage is especially true with industrial prospects. When the leaders of an expanding or relocating industry visit a community, they have some degree of seriousness to their intentions. By this point, both the prospect and the community have invested significant human and financial resources into the effort. The prospect visit is a crucial aspect of the recruitment process; the community must have a plan in place to make the visit successful.
Determining where to place a new facility is complex and may take from six to 36 months. Industry often employs professional consultants to determine the most profitable location. Proximity to suppliers and customers, labor availability, and transportation networks are often the criteria for selecting potential new locations. After a thorough study has been conducted, industry often narrows the alternatives to a handful of communities. At this time, a company plans a visit.
Prospects visit a community to answer specific questions about their relocation or expansion plans. These questions usually relate to specific sites and buildings, the local labor situation, and the attitude of the community toward new industry. The visit also gives the company an opportunity to "get a feel" for the locale and visualize their facility in the area.
The key to a successful site visit is a comprehensive, planned approach by key community members. Hurriedly assembling a site team is doomed to fail. Industry is unlikely to invest millions of dollars in a community where the appropriate team members cannot be assembled for a visit. A site visit team must be selected and educated well before a site visit is scheduled.
The purpose of a site visit is to answer a prospect's questions. In assembling your team, you should cover the following broad areas:
Representatives from these areas would include local business leaders (bankers, merchants, realtors, etc.) chamber of commerce executives, educational leaders, local elected officials (city, county, or township), local appointed officials (city manager, fire and police chief, service director, water and wastewater operators), and local utility managers.
Keep the number of people involved in the site visit to a minimum. Have experts on hand to answer pertinent questions, but don't "gang up" on the prospect. The best method is to customize your team members to meet the needs of each individual client. Team members should be on call as needed.
Other concerns specific to your community may arise. For example, if flood situations or environmental concerns are a problem, you must anticipate these questions and be prepared to answer a prospect's concerns.
The personalities involved on your team are important as well. All of your team members must have a sincere interest in the economic growth of your community. Those who join the team for personal prestige or to gain inside information will prove detrimental. Confidentiality is essential. Each team member must understand that communities lose prospects because of breaches of confidentiality. Team members should also be free to leave their normal occupations on reasonably short notice for the visit.
Your site team must be positive. The site visit is not a forum for airing negative aspects of the community.
Often communities view a site visit as an opportunity to sell their area to the prospect. This strategy will usually end in disappointment. The purpose of a site visit is to demonstrate how your community can best meet the needs of the prospective customer. While there may be many positive aspects to your area, companies have specific requirements regarding location and relocation sites. A failure to demonstrate the ability of your area to meet the customer needs will probably result in a failed visit.
The real objective of the visit is to inform the prospect about your community, demonstrate your willingness to work with the prospect, and make the most efficient use of the allotted time. Several areas must be addressed:
A written schedule should be submitted and approved by the prospect prior to the visit. Using Ohio's Site Selection Process, your Ohio Department of Development or Ohio Economic Development Council representative is usually the sole contact with the prospect and will prepare the agenda for you. The agenda serves both to organize the visit and to fine tune the visit to meet the prospect's needs. Include your plans for meals and social visits in the schedule. If possible, include a brief biography of all the team members that will escort the client during the day. This helps raise the comfort level of the prospect.
The local team must arrange to transport the tour group from the arrival point to the site and to other points of interest. Two methods are usually involved in this process: 1) the group method, where one large vehicle, usually a van, is used to transport the group as a whole; or 2) the breakout method, where several smaller vehicles are used, with the team members dividing themselves up to debrief the client's representatives informally. Whichever method you use, be sure it is acceptable to the prospect. Keep in mind that even the best sites may require all terrain vehicles to "walk" the property.
Lodging is usually arranged locally and should be handled with great care. It is not unusual for the local team to visit each hotel room before the clients check in, then personally present the clients with the keys to the rooms. Leaving a small gift with a local flavor in each of the rooms is appropriate. Have local newspapers available for the clients, as they will inevitably want to read about the community firsthand. Have someone available to dine with them if needed, and be sure to suggest suitable dining options. A bad hotel room or an inhospitable detail in the arrangements can, unfortunately, overshadow the economic advantages of a community.
The local economic development director (EDD) should be the "point person" responsible for coordinating and maintaining communications among the parties involved in the site visit. The responsibilities of the EDD include:
1. Maintaining communication with the entities or individuals representing the industry. This might include the Ohio Department of Development or Ohio Economic Development Council for prospects who come through the state's Site Selection Process, the site location consultant, or representatives of the company. Through this communication, the EDD should determine the specific expectations of the prospect regarding the community visit.
2. Maintaining communications with the hosting team members, each of whom should be "on call" for the day of the visit and be prepared for a "surprise" visit. Team members must understand that they will only be involved if their specific expertise is needed. They must make this their top priority for this entire day. The EDD must be flexible because the stated agenda for the day may change at a moment's notice. The EDD should have an assistant behind the scenes, at a telephone, who can help to keep communications flowing throughout the day.
The site should be in optimum viewing condition, mowed, debris removed, and the roads in usable condition. In cases where gravel roads are used as temporary travel points to a site, a client will understand that permanent roads will be installed to their specifications. However, they will most likely look unfavorably on unkempt or impassable roads. A little road grading goes a long way toward a smooth visit.
If your site is in an industrial park or an industrial area, be prepared to talk about the client's potential neighbors. Expect questions regarding labor status, traffic patterns, and shift change times. While it is unusual, it is not unheard of for a prospect to wish to make a visit to a local plant during this period. More commonly, a client will arrange these visits during follow-up trips. Needless to say, be sure to show your site in the best possible light.
Customize your information packet to meet the needs of your client. While local information is certainly vital, a client from out of state will also be interested in information about your state business climate and programs. Tax structures, local wage and benefit surveys, and labor information is essential. Pertinent information about the site, including utility data, should be readily available.
Establish a firm offering price for the site. Industrial clients and consultants will reject land or buildings priced as "negotiable."
A successful site visit is the beginning of the next phase of the recruitment process. A few days after the visit, call to ask if the client needs additional information and to determine the next step. The local team will be impatient to hear feedback; inform them of any news that is not considered confidential. Handle all requests for information quickly and responsively.
If the prospect decides not to locate in your community, ask them to evaluate the effectiveness of your efforts. This feedback will improve your future efforts, as well as create one last opportunity to have the client consider your community. Some communities initially eliminated from consideration have successfully recruited a client through effective end game negotiations.
Everyone who was involved locally should be thanked, both personally and in writing, for their efforts. Emphasize their unique contribution to the effort and in landing the prospect, if that is the case, or relate a positive comment from the client should they decide to locate elsewhere.
Each site visit is a learning experience; use it to improve on future efforts. Securing a site visit in itself is a victory for any community.
Industrial Parks: A Step by Step Guide. U.S. Department of Commerce, 1989.
Economic Development: Marketing for Results. Eric P. Canada, 1994.
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Keith L. Smith, Associate Vice President for Ag. Adm. and Director, OSU Extension.
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