| In
the interest of facilitating good communication between utility companies
and expanding and relocating businesses, Expansion Management Magazine
gave utility companies the chance to say what’s on their minds, and to
offer advice and suggestions.
After all, utility companies play an important
role across the country in site location decisions.
They can assist with property searches,
they usually provide community profiles, and they frequently offer special
power rates. In fact, the wealth of information that utilities can provide
to an expanding or relocating company should never be overlooked.
With deregulation in full force in some
states, and on the horizon in others, the fact remains that utilities will
continue to impact business development. And, according to utility companies,
there are some key things businesses on the grow should know that could
make the site selection process a more efficient experience for all involved.
Read on for some insightful tips —straight
from utility companies.
1. Be specific when it comes
to project parameters.
In order to ensure that a utility can
help your company in the best way possible, it’s imperative that a company
be as specific as possible about its new or expanding project parameters.
This will facilitate efficiency during the project, and will help rule
out any unsuitable sites right off the bat.
Part of this process includes defining
what problems your business is trying to solve, and what the motivation
is for expanding or finding a new location.
Donna Buchheit, manager-economic development
for Pennsylvania’s PP&L, Inc., suggests that companies specifically
state if their project revolves around space issues, work force matters,
or improved market accessibility. The more the utility knows about the
project requirements, the better it will be able to assist your company.
Many times, companies are reluctant to
lay all their cards out on the table, in order to keep some information
private. All companies have a vested interest and want to find the best
fit for their needs, physically and fiscally.
However, up-front facts, on as many issues
as possible, will be conducive to successful, timely site location decisions.
“If I were to have to mention only one
thing, it would probably be that companies should identify in some type
of order of importance what the criteria is for them when they move,” said
Todd Gordon, business development manager with New Jersey-based Conectiv.
“What exactly do they need out of a location?”
Gordon said certain factors will predetermine
if a site will make the cut or not, and knowing these things early on in
the process will aid in qualifying cities and sites before either party
invests too much time.
2. Do some preliminary research on
sites that could be of potential interest.
Remember that for a company in the initial
stages of researching an expansion or relocation site, there are plenty
of routes to travel on the quest for community data.
There are Web sites galore that are chock-full
of community profiles, available property listings, incentives information
and much more. Web sites are typically maintained by states, cities and
utility companies.
In addition, a phone call to a regional
economic development agency or a utility company will likely uncover community
brochures and booklets.
“It’s helpful if a company is research-oriented,”
suggested Clay Hathaway, business development project manager for Oklahoma’s
Central & South West Corp.
What motivates
your company’s
decision to
relocate or expand?
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“If a company can tell us a little about
the reasons why they need to locate in an area, this would allow us, as
a utility, to gear our community proposals more specifically to their needs,
whether it be labor force information, or otherwise,” he said. “We can
provide just the information that will allow the company to narrow their
search more quickly.”
Often, a company may simply know it needs
to locate in a certain location because a client requested it.
The more information a company has beyond
this, the more a utility can help.
For example, what are your building, transportation
and power needs? A few answers to questions like these can go a long way
in finding your firm the right site in a hurry.
3. Know that lead times are crucial
for a successful start-up.
Utility companies agree that lead time
is key to a project’s success. Obviously, the quicker a company can make
a decision on a site or building, the better chance it has of being up
and running in the time frame desired.
In today’s environment, where most projects
needed to be done yesterday, a timely site decision can go a long way toward
impacting an on-time start-up.
4. Be aware of deregulation issues.
“There is something else that utility
companies want people to know about, and that would be deregulation,” said
Grant Thomas, project manager, economic and business development for Southern
California Edison.
“Most companies don’t know enough about
deregulation to take advantage of all the things it offers. If they don’t
know the facts behind what we’re able to represent, then they’re not going
to be able to take advantage of all of the tools that we have to offer
them.”
According to a nationwide survey unveiled
recently by RKS Research and Consulting, customers of public power systems
are less aware of deregulation now than they were one year ago.
Only 50 percent of business customers
surveyed were aware of deregulation, as compared to 70 percent surveyed
in 1998.
However, more than two-thirds said
they believe deregulation will bring lower prices and comparable or better
service.
5. Ask about site selection services
that utilities offer.
Many times utility companies offer services
that rival those of a site selection consultant.
They can provide a confidential perspective
on a community and its economic climate.
Moreover, utilities often are in tune
with the real estate market in their service territories.
They often partner closely with real estate
agents and other economic development professionals to extract details
on available greenfields, brownfields, shell buildings and other sites.
More and more utility companies are making
their site databases available on the Web.
Indiana-based Cinergy/PSI is just one
industry representative, but its services provide a glimpse into what utilities
across the nation can offer to expanding firms.
“We have a staff of 15 and resources to
assist in the site selection process and to identify advantages of doing
business in Indiana,” said Marie-Christine Pence, economic development
project manager. “This includes an extensive database of 500 sites and
150 buildings, as well as aerial photographs, community and county data
and utility service information and rate studies, all of which can be specific
to a company’s requirements.
“In addition, our services are free and
we will work with the company in a confidential manner.”
6. Inquire about the availability of
economic development rates.
In addition to exploring the services
a utility offers, it’s also wise to check into the availability of economic
development rates.
Southern California Edison is among the
many utility companies offering special rates.
The company’s rates are geared toward
encouraging manufacturing and film industries to expand and locate in California.
The utility has three economic development rates — for retention, expansion
and attraction.
Of course, for most economic development
rates, certain requirements must be met and there are thresholds of usage
that must be maintained.
7. Be prepared to state what your company’s
deal breakers are.
Ultimately, the expanding or relocating
company is the only entity with knowledge of what its deal breakers are.
They could be the time frame, specific
job skills, infrastructure, rail accessibility, energy costs or financing,
just to name a few.
When it gets down to the wire, the must-haves
are what really count, and the earlier in the game these can be conveyed,
the better a utility can address a company’s needs.
And when it comes to expansions and relocations,
efficiency is the name of the game.
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