The Relevance of Community Strategic Planning in Corporate Location Decision-Making

In recent years, many communities have been encouraged to invest in “greenfield” development sites as a way to attract large manufacturing and distribution operations. This is also taking place at a time when such businesses are changing the way they make decisions about where to locate and expand. These business decisions have far-reaching implications for communities. Some businesses may decide to visit and negotiate for community incentives; others may want to know what communities are doing to improve the business climate. However, these incentives alone may not secure a relocation or expansion project for the community. It is becoming apparent that businesses are also interested in the contents of a community’s strategic plan.

A community’s strategic plan might not seem important. However, when it considers things such as a community’s workforce, business attraction and retention approaches, and an integration of economic and community development, the plan can be very helpful in expediting the site selection process.

How can strategic planning help businesses decide where to locate?

Companies look for employees with experience in cutting-edge manufacturing, robotics, and other fields. A strategic plan enables community leaders to bring existing key business and educational institution leaders together to discuss each other’s needs and find solutions for them.

Community members participate in community strategic planning process

Community members share in the community strategic planning process.

Although attracting new businesses is a common economic development strategy, research indicates that about 80 percent of all new jobs in a community come from existing businesses. A strategic plan that takes into account the need to retain and expand a community’s existing businesses may indicate to potential new businesses that the community is dedicated to assisting its businesses to become more competitive.

Companies want to see how communities foster social and economic integration by the way they plan to address local issues such as housing, education, healthcare, and cultural diversity. They also want to see how all stakeholders — residents, community-based organizations, public agencies, and the private sector — work together to promote residents and community quality of life.

Fayette County, Ohio recently revised and updated its strategic plan to provide a vision and a vehicle for creating short- and long-term community and economic growth for residents and businesses in the community. The vision considered all the vital elements: workforce, business attraction and retention, and importance of integration of economic and community development. The community’s workforce plan involves implementing youth workforce programs, including a Manufacturing Day Tour and a Career Expo for high school students.

The community’s business retention and expansion strategies support and develop existing businesses. This pro-business attitude can add to the attractiveness of the community as an excellent environment for new businesses. Most importantly, the community has nearly 1800 acres of “greenfield” development acreage (1,600 acres for the county and 200 acres for the City of Washington Court House). These “greenfield” development sites have infrastructure, including utilities and water, available on site for investors seeking a business location.

Community strategic planning has helped in Fayette County. How might it help in your community?

Reference:

http://www.areadevelopment.com/corporate-site-selection-factors/Q4-2017/importance-of-community-strategic-planning-location-decision.shtml


Apaliyah, GodwinGodwin Tayese Apaliyah is an Extension educator in Fayette County.

BR&E Program Focuses on Perrysburg, Ohio Local Economy

Perrysburg remains Wood County’s most economically diverse and thriving community and is one of Northwest Ohio’s best magnets for economic and business growth. It remains one of the best places to own real estate in the county and region. When it comes to “economic gardening,” no other community in Northwest Ohio is as successful in providing residents, business owners, and entrepreneurs with innovation-based economic development tools. Downtown Perrysburg Inc. and the Perrysburg Chamber of Commerce help to ensure the City’s B2B (business to business) networks thrive.

The City of Perrysburg sign

The City of Perrysburg – Wood County’s most economically diverse and thriving community.

The facts that support this claim are:

  • Perrysburg’s residential growth has increased 21.7% since 2000, and is the fastest growing community in the region. State average for residential growth in the last ten years was 1.7%.
  • According to a recent study, Wood County was ranked as one of America’s Top Ten Small-Sized Counties (FEC Inc., 2012.). The ranking considers several measures within five areas: Investment, Talent, Sustainability, Place, and Diversity. These five areas serve as a foundation for future economic success.
  • According to Stats America, Wood County has a 10-year per capita personal income (PCPI) growth of 7.3%, the highest in the region.
  • Residents spend $3,500 more per capita on retail items than state average. According to the US Census, per capita income is $37,813, a 32% increase from the state average.
  • Median household income from 2008-2012 averaged $69,341, a 30% increase from the state average, and one of the highest household incomes in the region.
  • Median value of owner-occupied housing is $192,600, a 30% increase from the state average; Perrysburg has one of the highest housing values in the region.
  • Over the last two years, Perrysburg has had more multi-family housing units under development than any other community in the region. This type of housing is extremely important in attracting young professionals and providing businesses with a diverse base of employees¹.

Recognizing the importance of its growing community, the Ohio Sea Grant College Program and Ohio State University Extension collaborated with the City of Perrysburg to conduct a Business Retention and Expansion (BR&E) Program. Because of this applied research effort, local leaders are better equipped to assist business needs in the city to achieve their growth objectives and to improve the overall business environment for the City of Perrysburg’s business community.

The seal of Perrysburg.

As a result of the BR&E program, the City of Perrysburg learned that:

  • Forty businesses plan to expand, modernize or renovate their businesses with firms planning to add jobs within the next 12 months. These firms will add between 58-177 new full-time equivalent jobs.
  • 177 new jobs are estimated to represent $101,063 in additional income tax revenue and would contribute an estimated $6,737,505 in personal income to Perrysburg’s local economy.
  • Jobs are projected as being added in the professional services, retail and commercial service sectors. 116 businesses plan to retain up to 2,880 full-time equivalent jobs.

The BR&E program in Perrysburg aims to:

  • Identify and address concerns and issues of existing businesses by creating a value-chain of partners, including local and state government as well as private organizations and enterprises.
  • Identify opportunities to stimulate local job growth, and establish and maintain long-term relationships among public and private entities associated with the Perrysburg local economy.

To learn more about the City of Perrysburg BR&E program, see the final report. Click here to learn more about the Ohio BR&E Program.

 

¹City of Perrysburg website: https://www.ci.perrysburg.oh.us/index.php/economic-development


 

Joe Lucente is an Associate Professor for the Ohio Sea Grant College Program and Ohio State University Extension.