Subscribe
Close
  • Free for qualified executives and consultants to industry

  • Receive quarterly issues of Area Development Magazine and special market report and directory issues

Renew

The CFO's Role in the Site Selection Process

In today's tough fiscal environment, those involved in making the location decision often defer to the company's CFO.

Winter 2011
(page 3 of 3)
CFO outreach and marketing - In addition to attending the traditional conferences for real estate executives, some communities are starting to look at attending conferences for corporate financial executives. Their message at such events is all about cost. Instead of listening to the usual sales pitch about land, quality of life, and infrastructure, the CFO will hear about taxes, fees, utility charges, and wage costs. While all this information can be incredibly helpful to the CFO, remember that economic developers are in the sales business, so it is important for the CFO to verify the data provided and see how it stacks up against real world experience. As part of the site selection process, the CFO should request to talk to other CFOs at companies with existing facilities in the community in order to compare notes.

Ask Area Development

If you have questions about the role CFO's and company finances play in the site selection process, send them to Ask Area Development and the article author will respond.
Emphasis on consistency and predictability - A strong incentive offering is always welcome; however, the CFO should also ask questions about consistency and predictability of government policies. For example, when was the last time the corporate income tax rate increased? What has been the trend on property and other local taxes? What is the credit rating of the host community and is the rating improving or declining? Is there a history of special tax assessments that can unexpectedly increase costs in the future? Knowing the answers to these and similar questions is essential to ensuring that the underlying business climate provides a foundation for success.
U.S. Manufacturers Attempting to Upskill Their Workforces
Geraldine Gambale, Area Development Magazine
Developing Loyalty Among a Millennial Workforce
Geraldine Gambale, Area Development Magazine
Technological Innovation Essential to U.S. Manufacturing Growth
Geraldine Gambale, Area Development Magazine
Which Countries Have Lowest Business Costs?
Geraldine Gambale, Area Development Magazine
Ideas for Industry Innovation Ecosystems Put Into Play
Craig Giffi, Deloitte LLP
Michelle Drew Rodriguez, Deloitte Services LP
All Studies/Research/Papers

Follow Area Development

Share