Strategies in Site Selection

1. Strategies in Site Selection Presented by: James Renzas President Location Management Services, LLC

2. Introduction • Overview • What Are Site Selection Services? • Why Are Site Selection Services Needed? • The Site Selection Process: • Phase I: Area Screening • Phase II: Site Selection • Phase III: Incentives Negotiation • Key Points to Remember • Contact Information

3. Utilities Demographics Labor Market Sites Buildings Transportation Quality of Life Incentives Business Climate Overview • Selecting the Optimal Location for: • Office • Manufacturing • Distribution • There is no “Perfect” location for corporate facilities – each location is a trade-off of various location criteria. The goal of Site Selection is to find the best combination of factors to support corporate goals and objectives.

4. What are “Site Selection Services”? • Site Selection services help companies select the best location for a new or relocated facility to achieve corporate goals and objectives • Site Selection Services are often needed when: • The client is entering new markets and needs to identify the best location • When operating costs or operating conditions deteriorate at existing locations • When consolidating multiple facilities or operations • When business conditions dictate the need for expansion

5. Why are Site Selection Services Needed:The “Baby Bust” • Over this decade we will experience a 9 percent reduction in mid-career workers in the 35 to 44 year old range • Open positions in the U.S. will increase from 5 million today to 10 million by 2010 • The current unemployment rate for college graduates is less than 2 percent • Areas all over the world are showing signs of labor market shortages – even in China

6. The Site Selection Process Three Phase Process: • Phase I: Area Selection • Phase II: Site Selection • Phase III: Incentives Negotiation

7. Phase I: Area Selection • Starts with the “Standards of Location” Questionnaire • Definition of the “Search Zone” • Screen Hundreds of Potential Locations • Fatal Flaw Analysis Eliminates all but Ten Semi-Finalist Areas • Key Criteria = • Labor Force Availability • Unionization • Available Sites/Buildings • Utility Availability • Transportation Cost • Further Analysis Eliminates all but Three Finalist Areas

8. Phase II: Site Selection • Field Investigation of Finalist Locations • Interviews with similar employers • Labor market experts • State and local officials • Utilities • Educational institutions • Quality of life

9. Operating Cost Matrix

10. Operating Conditions Matrix

11. Summary Decision-Matrix

12. Phase III: Incentives Negotiation • Concentrate on Top Two Finalist Locations • Identify Key Incentives Negotiations Goals • Make No Commitment Until Incentives Documentation • Re-Run Decision Matrix with Final Incentives Numbers • Abstract Incentives Agreements and Calendar Critical Compliance Due Dates and Information • Never make a Location Decision on Incentives Alone

13. Key Points to Remember • Selecting the Best Location for Corporate Facilities is More Important than Ever • It is Important to Employ a Structured Methodology to Select the Best Location • Utilize the Three Step Process to: • Identify the Best Prospect Areas • Create a Decision-Matrix for Critical Criteria • Negotiate the Best Incentive Package and Collect

14. Contact Information For more information go to: www.locationmgmt.com Or Call Me Directly at: James H. Renzas President Location Management Services, LLC 949-472-4482 jrenzas@locationmgmt.com