The Factors Driving Business Location Decisions

About the Guest:

Sarah Perrigo is part of the Regional Growth Partnership, a key player in Northwest Ohio's economic development landscape. She has previously worked with Findlay-Hancock County Economic Development, focusing on attracting young professionals and overseeing initiatives surrounding business growth and regional development.

Matt Davis also represents the Regional Growth Partnership in advancing the economic growth of Northwest Ohio. He has experience in site selection processes and providing strategic support to businesses looking to expand in the area, aiming to create a conducive environment for business opportunities and sustainable community development.

Episode Summary:

In this episode of Chamber Amplified from the Findlay-Hancock County Chamber of Commerce, we delve into the complexities of business site selection and development. We take a look at the multifaceted process of how businesses decide to set up or expand in Findlay and Hancock County. This discussion sheds light on the essential elements that influence these choices such as infrastructure availability, workforce readiness, and community support.

The conversation unveils how Northwest Ohio has become an attractive location for diverse business sectors—including advanced manufacturing and agribusiness. Sarah and Matt discuss the importance of having ready-to-market sites and buildings, understanding the site's utility capacities, and the critical role local government and community leadership play in ensuring a smooth transition for incoming businesses.

Key Takeaways:

• Northwest Ohio is seeing interest from industries like advanced manufacturing, automotive, and food sciences due to its strategic advantages.
• Site readiness—with available buildings and detailed site assessments—is crucial for attracting businesses looking to expand.
• Confidentiality in business site selection is paramount to protect competitive strategies and avoid premature exposure of business plans.
• Local government and community cooperation play a critical role in the site selection process, providing long-term assurance to businesses.
• Understanding evolving economic conditions and being prepared for shifts, such as reshoring trends, is vital for sustainable regional development.

Music and sound effects obtained from https://www.zapsplat.com

Transcript

0:00:02 - (Doug Jenkins): Welcome to the show. I'm Doug Jenkins from the Findlay Hancock County Chamber of Commerce. On each episode of Chamber Amplified, we're examining issues impacting the local business community. From employee recruitment and retention, marketing, IT issues. It's really anything that could be impacting your business. Or maybe you're just curious about things happening in the business community. That's where we're going today.

0:00:21 - (Doug Jenkins): Our goal is to give our members tips each week on at least one way they can improve operations and thrive in the current business environment. Hey, real quick, before we get into it, a lot of great feedback from our last couple of episodes. One about AI, one about retail. Really appreciate hearing from you. And do me a favor, if you share this with a friend, I think it's easier to share from Apple Podcasts. I don't use Apple Podcasts, but if I ever go to share a podcast, I download it to Apple Podcasts. So I can share it that way because the podcast player that I use makes it real complicated. But if you ever just need the link to share out, you can get those from the Chamber of Commerce website too@finleyhancockchamber.com Hancock so again, help spread the word.

0:01:02 - (Doug Jenkins): It really does help out. We'll get into that. Hey, what are we talking about today? Well, have you ever wondered about how businesses decide to locate or even expand their presence in Findlay and Hancock County? There's a variety of things that are considered some pretty common sense. You're probably thinking about them right now. Roads, electric, water, things like that. But there are some things that maybe you haven't thought of.

0:01:24 - (Doug Jenkins): Today we're talking to Sarah Perrigo and Matt Davis of Regional Growth Partnership. They do a lot of work on the real estate and business attraction end to do that throughout all of Northwest Ohio. We're gonna get a look at what types of companies are looking at the region, kind of what sectors are interested, what helps land a project, and why potential projects have those goofy code names. We've heard those discussed before. Well, we'll get into that today.

0:01:47 - (Doug Jenkins): Today's show is designed to give you a glimpse into that site selection process of why it's so important for the area and everything that goes into it. Thanks again for tuning in. And if you're listening on Apple Podcasts or Spotify, not only can you share the show, but you can review the show as well. And that really helps spread the wor. Now let's get into it. And welcoming into the podcast Sarah Perrigo and Matt Davis with Regional Growth Partnership. Guys, welcome to the program.

0:02:13 - (Sarah Perrigo): Thanks for having us.

0:02:14 - (Doug Jenkins): So I think, Sarah, you were on the podcast once before when you were with economic development here, right?

0:02:20 - (Sarah Perrigo): Yeah. I think we talked about attracting young professionals within the county area.

0:02:24 - (Doug Jenkins): All right, so you already know what to expect in random questions and everything like that. Matt, it's your first time, so I'm just going to apologize in advance.

0:02:32 - (Matt Davis): All right, we're ready, Doug. We're ready.

0:02:34 - (Doug Jenkins): So today on the podcast, we want to talk a little bit about site selection and what draws a business to an area, particularly larger businesses. What are the factors that go into that? And you guys both were part of a presentation at Regional Growth Partnership in January. And, Sarah, I thought you had some really interesting numbers. And looking back at 2024, just the types of industries that are looking in northwest Ohio doesn't necessarily have to be Findlay, Hancock county, but there's a large number of businesses that are considering locations in Findlay and Hank, or, excuse me, in northwest Ohio. What are the types of industries that we're looking at?

0:03:11 - (Sarah Perrigo): Yeah. So in 2024, we had 88 total site searches. A site search can either be what we call a front end or a back end. Sometimes there's a request for information, but a company comes to either us or Jobs Ohio, and we kind of help them through that process. Of those 88 total site searches, 45 were in advanced manufacturing. We had 12 automotive, nine in food sciences and agribusiness, and then a couple scattered in other industries such as logistics and distribution, information services and software, and shale energy and petrochemicals.

0:03:47 - (Doug Jenkins): And just because a business looks at a site or at least gets the preliminary information, that doesn't necessarily mean that, hey, that business is coming. But it does give us a snapshot of what types of businesses are looking in the state, more particularly in our region, which is always good news to have and good information for an economic development agency for cities. How widely is this information shared?

0:04:13 - (Sarah Perrigo): From our standpoint, we work with all of our local partners. So we have 17 counties northwest Ohio that we work directly with. We work with any workforce, entities that might be involved in that, any property owners or brokers that might have great sites for these opportunities and other people in the utility and transportation sectors that support these projects.

0:04:36 - (Doug Jenkins): So again, it's not like a factory is just going to be all of a sudden be plopped down on a property, and then everybody's scrambling to get infrastructure, figure out what educational needs, things like that. That is all considered, and everybody's kind of part of the equation there.

0:04:52 - (Matt Davis): Yeah, Doug, a lot of Times when Northwest Ohio is involved in a search, it's either kind of. A lot of times we're involved in a search that maybe involved the Midwest. So we find all of Ohio could be involved or just a section of Ohio. Commonly we're in a search along with Michigan, Indiana, other Midwest states. It might depend on whether the company's growing from maybe the east coast towards the west coast or towards the Midwest, or they want to capture some new markets. So it's kind of on a case by case basis, which is why it's important to try to read between the lines and learn as much as you can about who is searching, what are the drivers of those projects, and then be able to demonstrate who in Northwest Ohio is ready for them and has those matching assets to put our best foot forward.

0:05:40 - (Doug Jenkins): Matt, let's, let's kind of jump off of that. Let's say a business comes to you. We always use the. Doug's widget is the business du jour, the business that we default to here on the, on the podcast. I have expanded operations. I need mass manufacturing. Advanced. Advanced manufacturing. And I want to do something here in Northwest Ohio. I reach out to you. What does that process look like for a company?

0:06:04 - (Matt Davis): Well, you know, we, we would naturally were very interested. We'd say, okay, Doug, what is it that. That you really need? Are you trying to reach a new market? So we'd ask some pretty baseline questions to try to figure out what is your goal and then what are your needs? Do you need a big piece of land? Are you looking for a building? How quick are you going to get to market? So we've done this a lot in Jobs Ohio.

0:06:30 - (Matt Davis): The state's economic development engine that we represent in Northwest Ohio has this kind of streamline. So they've got a pretty sound process and some intake forms and they know what questions to ask to kind of get to the root of what it is you're trying to do. Then based on the responses and some additional dialogue, we'll have a pretty good idea. This is the type of business that they have. These are going to be the things that. And do you use a lot of power, for example?

0:06:57 - (Doug Jenkins): I use a ton of power to make widgets.

0:06:59 - (Matt Davis): There's a ton of power. So we're going to want to find an area that. That's going to be not an obstacle and where it's going to be relatively inexpensive. Right. You're probably going to want to make money with those witches.

0:07:09 - (Doug Jenkins): This.

0:07:09 - (Matt Davis): So try to get to the root of what that is. What are Your what are your drivers? What's going to help you push you in that decision direction to realize northwest Ohio is the right spot for you to establish that business right here?

0:07:22 - (Doug Jenkins): I think what's interesting in both your worlds is you, you hear from a lot or you get you feelers from different businesses and things like that. But we're talking baseball averages here. If you're batting.300, you are, you're, you're going to the hall of Fame. If that's your career average is. Like we said, not every business that reaches out is going to put their business here. They might not even end up building anywhere. They're just sort of doing their due diligence, which I think comes to another question. This is the part of the podcast where I ramble, by the way.

0:07:54 - (Doug Jenkins): You know, a lot of times I think people think these are, these deals are done in secret where I think a lot of times it's just exploratory from companies. They don't necessarily want to put out information that they're coming because they might not be. What I guess what's your experience with that in dealing with these potential industries coming in?

0:08:16 - (Matt Davis): Well, first and foremost, absolutely. A lot of nine times out of ten, Doug, we establish a code name for these because those folks are going to want to remain confidential. A lot of times they don't want their competition knowing what their plans are. So we have to treat, we definitely have to respect that. That's the first way to get yourself eliminated is to breach confidentiality. So clearly we have to listen to that.

0:08:42 - (Matt Davis): But yes, we try to find, you know, ways and work with our local partners, those folks in each county, those ED offices, and let them understand what the opportunities are and are their communities ready and willing. So having that information ready to go, knowing your utility capacities, understanding the land prices, knowing as much as there is to know about the land that you're trying to market or the building that's available to be able to act quickly.

0:09:12 - (Matt Davis): Time is money. A lot of folks times these folks want to move fairly quickly. Now, whether they move quickly or not, it's a whole other question. Doug, as you mentioned, this doesn't happen overnight. They kind of dip their toe in the water. A lot of times these things happen in rounds. So the first round might be, you know, a three or four state search and then they might take that list and get it down to four or five sites that they want to understand a little bit more about. So there might be a supplemental informational sheets that letter assets submitted.

0:09:41 - (Matt Davis): They might result in Them sending a team to meet with the local folks and actually see the building or see the site that they're looking at. So then you would prepare for a visit from them. And then of course there'll be follow up. Some cases you might have two or three or four visits by the time they really get down to deciding if they want to establish that that factory or that facility at a particular location.

0:10:06 - (Doug Jenkins): Sarah, are there advantages and again everything is a case by case basis and every company's looking for probably something a little bit different. But are there things that you see that are advantageous for an area to have that more often than not? If like let's say you have a job ready site or you have a spec building or whatever it is, what are some of those things that make it a little bit more likely that you make it to even the next round of the conversation?

0:10:34 - (Sarah Perrigo): Yeah. So right now over the past year buildings have been king. We've seen a lot more searches for existing buildings as opposed to land. You're not taking on the construction costs yourself. There's a little bit less risk because it's already. You're not going through permitting processes. Due diligence has already been done. So buildings are great right now if you're looking at land having as many of those due diligence reports as possible. So your phase one environmental site assessment, your geotechnical, those types of documents provide the company some assurance that they're not going to go in and find some things that might hurt either their bottom line or their time frame.

0:11:15 - (Sarah Perrigo): Obviously the closer you are to your utilities, whether that's a 138kV electric line, those transmission lines are great. Rail is always a perk that's been a bigger one especially with the large sites that have been requested. A lot of people want rail access, whether that's a spur or even if you're close to an intermodal facility that can can kind of be beneficial as well.

0:11:42 - (Doug Jenkins): That all makes sense. Are there we talk about it a lot internally. I know you guys probably have the same discussions but those are things obviously I think everybody expects to deal with in the economic development world and things that they're working on. But what about more that second level things like education in the area, amenities for employees or executives, things like that. How much is that considered? When does that even come into the conversation?

0:12:09 - (Doug Jenkins): When companies are looking at a site?

0:12:11 - (Sarah Perrigo): Yeah. So those that first round of site visits typically they want the key details. They want the things that we just mentioned. It's the later rounds is when you're going to get more of that quality of life. If they're moving business executives or worried about attracting their production workers, they want to know that people are going to want to live and work there. Education and building that workforce. Pipeline comes up.

0:12:36 - (Sarah Perrigo): Sometimes in the first site visit, sometimes in the second. It kind of depends, especially if they have a more specialized need and they know they're going to need very technical engineers or people with accreditations for certain positions. And then sometimes you'll get some other second level things, such as some people really need to be close to certain international airports if they're international companies.

0:13:06 - (Sarah Perrigo): That's again, sometimes it's the first site visit, sometimes the second. It's all like you said, case by case, depending on their specific project.

0:13:16 - (Doug Jenkins): Matt, it looked like you had something you wanted to add there.

0:13:19 - (Matt Davis): No, I think Sarah got into it. You know, the quality of life stuff's very important. It just they want to make sure the site's going to work because they can love your community, they can love the leadership, but if the site doesn't work, it's going to cost them more money than it would somewhere else. It's just not a good business decision to make. Doug?

0:13:35 - (Doug Jenkins): Yeah, absolutely.

0:13:36 - (Matt Davis): Yeah. What, what affects that bottom line? What's going to affect their bottom line for the next 15, 20, 30, 50 years?

0:13:44 - (Doug Jenkins): I want to go back and touch on something that you brought up earlier, Matt. I think sometimes there's confusion in the community about why these companies don't say who they are and they come in under the. You mentioned it. And, and I think that's probably a number one, you don't want your competition to know what you're doing so they can't get a leg up on you.

0:14:02 - (Matt Davis): Right? Yeah. I mean these are, you know, a lot of times that's the American way. Right. You know, you can make it, but if somebody else can make it cheaper, you're going to try and sell just as many as they are. So there are strategic things that these companies are trying to do. Grab market share, you know, be the go to provider for whether it's something the automotive industry or win that next contract.

0:14:25 - (Matt Davis): So these strategic moves to put themselves maybe deliver that product a little bit cheaper and win that contract this year. So that's the last thing you want to do is let that cat out of the bag. Hey, did you know, so and so is trying to get something in northwest Ohio, which man, they would be cheaper than us if they could do that. You get some of that and then, you know Other times it's just they don't want folks wondering or is this, are they going to move the plant from. You know, if they're a growing industry, they're going to take and move the business from where it is to here. So they don't, then they don't want to deal with that on their own corporate level.

0:15:03 - (Doug Jenkins): That makes a ton of sense as well. How much of a factor does being able to work with local government, whether it's the county, the city, the state and what that environment looks like, how much of that is taken into effect and maybe what level?

0:15:19 - (Matt Davis): Well, you know, working with your local government is critical. You know, we always like to say, you know, at jobs Ohio and the rtp, you get to see us for a fairly short period of time. Sometimes these deals take a year or two to get through. But as I kind of just said, once you establish and decide this is going to be your home, this could be your home for the next 10, 15, 25 years. We're going to be there every once in a while to see you. But day in and day out, the local government, your local economic development folks, your local utility providers, they're going to be your go to people every day.

0:15:55 - (Matt Davis): So having that comfort level, having that strong leadership is critical to that decision, Doug. So that involvement and that strong leadership, that showing that you are an open community and you want these businesses and you're there to support them, it's absolutely critical. But as Sarah mentioned, when that gets introduced and how they get in, how that gets introduced, you kind of have to take the cues from the client.

0:16:19 - (Matt Davis): When are they willing to hear from the local leadership? When do they want to hear the workforce story, all the things that are going on in the community that are going to make them sure that this is the right spot for them.

0:16:32 - (Doug Jenkins): One of the things that we're really paying attention to from a chamber perspective is just the changing business environment. Anytime there's a new presidential administration, there are new priorities, there are new policies. In the last week or so, what has changed in your world that maybe is something that you were had, you had to consider that you don't have to worry about anymore or things that you're looking at on the horizon?

0:16:59 - (Matt Davis): Well, I guess, you know, being preparation, Doug, is the main thing, since we still don't really know. I mean, it takes, you know, we get hints at what kind of policies might be rolling out or what's going to change, but being prepared for some reshoring is something we'd like to, you know, we Want to make sure we're not taken by surprise. If someone wants to decide that they still need to provide products to the United States, but they need to have that happen stateside and they decide they want to do it, we want to make sure they have a place to do it here.

0:17:28 - (Matt Davis): And so having that inventory, having those strong. We're ready for you. This is all we have to offer. And making sure that information is ready to turn really quickly around is very important. And having variety. Right. It could be that small 15,000 square foot building that somebody needs. Maybe there are smaller parks that they're making, or it's something, you know, something, you know, chemical or something that doesn't take a lot of space.

0:17:57 - (Matt Davis): Or it could be someone that wants to develop something ginormous. So they need a few hundred acres of a greenfield space. So having a wide variety of inventory and having that readily available and knowing what, just knowing everything that you can know about that, as Sarah mentioned, getting that study, getting that phase one environmental, getting all of those things taken care of, out of the way is very important.

0:18:22 - (Doug Jenkins): It's all very. I think the way all of this comes together is very interesting. Sarah, if there was one thing you wish the general public knew a little bit more about, Regional growth partnership or what you and Matt do, what. What would that be? I'm asking all the hard questions that I didn't prep you for. Now, these are random questions from Doug. They come rapid fire.

0:18:46 - (Sarah Perrigo): Yeah. I think the most important thing I would want just anybody to know is how closely we work with the local communities to make sure whatever project they're going after truly is a good fit for the community. We don't want to push anything on anyone that, you know, isn't going to work with either the workforce or, you know, the industry isn't quite what they're looking for. So just that really tight connection with your local economic development offices.

0:19:12 - (Sarah Perrigo): We're trying to keep the entire community's interests in mind and do what's best for everybody.

0:19:17 - (Doug Jenkins): I think it's a great point in bringing everybody to the table that could be impacted or could have an impact on drawing in future employers is a great idea. So we appreciate what you're doing. If people want to learn more just about the regional growth partnership or what site selection looks like from a more, maybe a more granular level, what are some good resources for people?

0:19:39 - (Matt Davis): We have a very robust website, rgp.org so that will give you a snapshot of all the different components of what the RGP does. But clearly we Have a love for site selection. So we've got our own little page from there where you can see some of the available properties. Doug, if any of your listeners have buildings or lands that they would like to see promoted, reach out. Our contact information is readily available. We would love to include spaces or land or buildings that you might have that you would like to have viewed on that database free of charge.

0:20:14 - (Matt Davis): So just contact us. We can help you get those things on there. And then also since we see a large breadth and a large variety of urban stuff, rural stuff, suburban in between stuff, we know a lot of best practices, so don't hesitate to ask what's so and so doing what. Have you guys seen work when it comes to a project like this? Or we've got this obstacle? Have you seen success in another community that might help us?

0:20:43 - (Matt Davis): We are happy to share.

0:20:45 - (Doug Jenkins): Very good. Matt, Sarah, I appreciate you joining us on the podcast. I always get great information from those RGP meetings. There's usually one or two podcast subjects that pop into my head as as we're going through that. So I appreciate you taking part today.

0:20:59 - (Matt Davis): Thanks for having us.

0:21:00 - (Sarah Perrigo): Thanks Doug.

0:21:02 - (Doug Jenkins): Certainly a lot of great information there, a lot to process and hopefully we've been able to give you a better picture of how larger development projects come together in the area. I think it's a really interesting process now again, I'm in this world and I'm a bit of a nerd when it comes to it, so maybe it's just me. Hopefully not. But I do believe it requires us to a lot of collaboration, as you heard from Sarah and Matt. And you have to have those steady hands at the wheel guiding the process.

0:21:28 - (Doug Jenkins): Otherwise it becomes very difficult to get projects like this to come into town. So things to consider really appreciate Sarah and Matt and everything they were able to talk about today. Chamber Amplified is a free podcast for the community thanks to the investment of members from the Findlay Hancock County Chamber of Commerce. Because of our robust membership, we're able to focus on providing timely information to the Findlay and Hancock county business community.

0:21:51 - (Doug Jenkins): Run leadership programs for adults and area high schoolers. Also be an advocate for the area while also providing tools to help local businesses succeed. And that's just scratching the surface. If it sounds like something you'd like to be a part of, just let me know and we can talk about how an investment in the Chamber or a Chamber membership not only helps strengthen your business, but the business community as a whole. And that'll do it for this week's episode. If you have ideas on topics you'd like to hear us cover in the future, send me an email. Djenkinsindlayhancockchamber.com

0:22:18 - (Doug Jenkins): thanks again for listening. We'll see you next time on Chamber Amplified from the Findlay Hancock County Chamber of Commerce.