The Job Of Site Location Consultants For Economic Development
One key questions by several economic development officials is to figure out how big and national companies decide where to find job creating facilities similar factories, headquarter buildings, research and development centers as well as warehouses. The truth is, the answer is quite simple, these firms base their decisions on location on business basics such as the proximity to both customers and suppliers, labor market consideration , infrastructure conditions and accessibility to affordable energy. In addition to that, clustering play a vital role especially for companies that are in the emerging technology.
The thing is, the procedure for the site location becomes complex and less rational. As a result, it is requiring the involvement of site location consultants that represent themselves as the indispensable middlemen between companies that decide where to locate their facilities and communities that are seeking investments. As a matter of fact, it is not objectionable to use the consultant’s services.
The fact of the matter is, these consultants have persuaded the corporate executive as well as local economic development officials that the utilization of subsidies is inevitable part of site location procedure. The consultants played to the fear of the communities that they’ll be shunned by large corporation unless they develop appealing business condition, which normally includes incentives similar to the availability of corporate tax breaks, infrastructure assistance and low cost financing. At the same time, companies are made to contemplate they’re fools unless they have extract the best subsidy deal from a community despite the fact that issues similar to taxes are just minor part of the decision.
All this is to the edge of the site location consultants who normally work both side of street, getting paid by the communities to provide subsidy-laden deals that might cause local fiscal distress and at the same time, by various companies that might be seduced by the unnecessary subsidy packages and be distracted from the business basics.
The undeniable fact that the site location consultants are allowed to work in both parties is already an unfortunate reflection that the public sector is disorganized and putting the company’s divide and conquer method left the public officials be in a weak position. They will be able to command the loyalty of the consultants only if the public officials were unified.
The consultants aren’t exerting much effort as the subsidy system has become so routine. Ignoring features that are important for the companies is what they often do.
The public officials and the community has to work together as a whole to be able to have a fruitful economic development.
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