Expanding or relocating a company can be a daunting task. Once the decision is made to set up shop in another location, or to grow an existing facility, then the real work begins.

Most expansion and relocation projects operate under stringent time constraints, which means that information must be gathered quickly, the information must be accurate and a final decision on where to locate has to be the right one.

To be sure, the company's internal project team will play a crucial role in the process. This group must understand the reasons for the move, and then provide the leadership for how to get there. But unless the company is unique or so large that it has its own dedicated expansion team, it will need to look for outside help.

One of the first places the company should turn is the local utility in the area or areas that the company is considering. And the utility should be involved in much more than just power-related decisions, although electricity or natural gas are generally very important to the site decision.

Utilities are invaluable sources of information for expanding or relocating companies. Power companies should be an integral part of any firm's expansion or relocation decision.

Information Plus

Reliable, comparable data is the engine that drives any expansion project. Without it, a company is just guessing and not making an informed decision in the company's best interest.

Utilities are great places for site selection information. Most utilities offer a variety of data, ranging from power prices to work force education levels to available buildings and much more.

The proliferation of the Internet during the past decade means that information is more accessible than ever. Many utilities have extensive site selection offerings on their Web sites. Nebraska Public Power District, which serves much of Nebraska, is no exception. The utility's Web site, www.sites.nppd.com, is an online gold mine of data.

"It (Web site) provides easy access to research data in an online, searchable database," said Dennis Hall, manager of economic development for NPPD. "Online information includes available sites and buildings, 2000 population characteristics, economic and demographic trend studies, community facts book, community profiles and industry profitability studies.

"All of this and more can be easily accessed through the home page," he added. "Customized research is also conducted for companies and communities."

This type of data is invaluable for companies. Instead of waiting weeks for the data to come from several different sources in a state or region, companies looking at sites in NPPD's service area can get it all in one spot, and in a hurry.

Of course, a company must take the time to verify data that it finds on the Web. A call to the utility can resolve that issue.

Buckeye Power provides similar information to companies interested in expanding or relocating to Ohio.

The utility is perfectly happy to answer queries over the phone, but companies interested in gathering information more quickly can go to the utility's Web site, www.buckeyepower.com.

"A company may go onto our site search system and get general information on the many buildings and sites located in 77 of Ohio's 88 counties," said Robert Forsblom, director of economic development for Buckeye Power. "If the client needs additional information, we will send him/her a complete information set via mail or e-mail for review. We also offer site search tours, community information, demographic data and electric rate analysis."

A Friendly Face to Open Doors

Hard data is great, and no expansion is complete without it, but there's another important element in the site selection experience - the human factor. If yours is like most companies, you want to get a "feel" for the community that could be the future home of your manufacturing plant or distribution center.

If you need to transfer some employees to the new site, will they like it, or even agree to move there? How does the area treat new companies? Will your company fit into the type of industry that is accepted there?

For these, and hosts of other questions, you need to talk to someone with experience in the community. Representatives from the utility oftentimes have this type of experience, with long-time employees willing to share their impressions of the area.

Economic development professionals can also be your key into a prospective community. They can put you in touch with the decision-makers in a town or city, and can fill in any gaps in your site selection strategy.

"NPPD's Economic Development Team works hand-in-hand with the Nebraska Department of Economic Development, as well as with community leaders," Hall said. "The Economic Development Team knows community leaders who will take charge and also knows the people at different state departments and will make the contacts company officials will need."

This type of end-to-end service was on display when a turf care company recently expanded in Nebraska. The company had several special requirements, and NPPD's site selection team helped the firm find everything it was looking for.

"The company philosophy was to lease, not own, its buildings," Hall said. "NPPD and the state economic development officials assisted the company in identifying a local developer who would add an addition to their existing building in Nebraska and lease it back to them."

What's the Catch?

You might be wondering what the cost is for all this site selection help. After all, nothing in life is free, is it? Well, the answer in this case might surprise you.

Most utility companies offer these services - and more - at no charge. In some cases, the utility will provide a helicopter to survey prospective sites or assist in negotiating property prices or incentives.

Why do utilities do all of this? It's a mutually beneficial situation. If your business succeeds in their service area, you will spend money on power.

"We offer these services to prospects with the intention of getting them to locate in our service territory, or nearby to add jobs, tax base and a better quality of life for the local economy," said Forsblom of Buckeye Power. "We also like to see additional electric sales to good loads."

Lance Yoder is a freelance business writer based in Kansas City, Mo.