10 Critical Factors in the Site Selection Process

Companies relocating or enlarging their businesses face many important decisions in the search for a new site, including critical assessments where an experienced utility business development team can help. Every project is different, just as every site is different, but these 10 factors are a constant in the hunt for the right location. Of course, the relative importance of these considerations is dependent upon the type of business and which factor(s) has the highest ongoing cost to that business.

At Entergy, we see these factors as:

1. Current electric pricing, as well as future risks to the current price due to external factors such as the proposed federal Clean Power Plan for Existing Power Plants
2. Logistics costs
3. Workforce availability and skills
4. The state and federal regulatory environment
5. Education and training resources
6. Property acquisition costs
7. States and communities that are politically and financially stable and committed to business
8. State and local tax rates
9. Financial incentives
10. The availability of a robust telecom Infrastructure

Utility ED teams are very familiar with the resources and processes associated with their communities and state. This knowledge allows them to bring perceptive insights regarding how the 10 critical factors will affect a company planning to relocate or expand.

Utility ED teams also work confidentially to ensure that companies receive the information they need in order to make well-informed decisions. The team has excellent working relationships with state and local officials and can provide political support in dealing with regulatory bodies. It’s important to know that local business development organizations and elected officials will be in your corner if regulatory issues ever arise. That provides an important comfort level that a company needs to invest in a new operation.

Companies also can depend on utility ED teams to:

• Identify timelines related to electric service to a site as well as an estimated electric rate
• Develop in-depth site profiles because a company needs to understand all aspects of the property
• Provide tax information so companies understand their liabilities and how incentives will offset those liabilities
• Furnish details on the local workforce, including whether skills gaps exist and how the state/community is addressing them
• Explain logistics options, so a company has multiple transportation opportunities for moving raw materials and finished products

A utility ED team will have answers for most questions that arise before a company visits a site, but for those occasions when something unforeseen pops up, the ED team acts quickly to get answers and provide solutions for a smooth location decision process. After all, we’re professional problem-solvers, ready to help you and your company with those 10 critical factors in the site selection process.

Mike Maulden is responsible for directing the company’s private sector economic development initiative in Arkansas. He focuses on new business recruitment, company expansion and community site improvements to attract businesses. Under his leadership, Site Selection magazine has recognized Entergy Arkansas as a top 10 Utility Economic Development Group in North America for 1998-99 and 2001-2014.

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