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Engaging Local Stakeholders for Site Selection Success

Why it’s so important to build strong relationships to secure support and facilitate site selection success.

Q3 2024

This article is part of the Site Selection Playbook 2024 series, providing strategic insights and practical advice for manufacturing executives. Published by Area Development Magazine, the series aims to guide businesses through the complexities of site selection to ensure successful project outcomes: The Role of Data-Driven Site Selection in Modern Manufacturing; Crafting Effective Incentive Packages; Ensuring Compliance and Maximizing Incentive Benefits; Understanding the Importance of Speed in Closing Deals; Optimizing Incentive Approval Timelines; Navigating Non-Disclosure Agreements in Site Selection; Engaging Local Stakeholders for Site Selection Success; Managing Community Sentiment and Activism

Successful site selection for manufacturing projects hinges on effective engagement with local stakeholders. These stakeholders, including economic development organizations, county officials, and city leaders, play a critical role in facilitating the site selection process and securing necessary approvals. This article explores strategies for identifying and engaging local stakeholders to ensure site selection success.

Identifying Key Stakeholders
The first step in engaging local stakeholders is identifying who they are and understanding their roles in the site selection process. Key stakeholders typically include:
  1. Economic Development Organizations (EDOs): These organizations are often the first point of contact and can provide valuable insights into local incentives, regulations, and community sentiment.
  2. County Officials: County judges, commissioners, and other officials can influence approval processes and incentives at the county level.
  3. City Leaders: Mayors, city council members, and city managers are crucial for securing municipal support and navigating local regulations.
  4. Community Leaders: Influential figures in the community, such as business leaders, educational institutions, and civic organizations, can provide additional support and advocacy for the project.
Understanding the roles and influence of these stakeholders is essential for effective engagement.

Strategies for Effective Engagement
Engaging local stakeholders effectively involves several key strategies:
  1. Early and Proactive Engagement: Initiating contact with stakeholders early in the site selection process allows companies to build relationships and understand local dynamics. Proactive engagement helps identify potential challenges and opportunities before they become critical issues.
  2. Regular Communication: Maintaining regular communication with stakeholders ensures that they are informed and involved throughout the process. This can include scheduled meetings, updates on project progress, and addressing any concerns or questions promptly.
  3. Tailored Engagement Approaches: Different stakeholders have different priorities and concerns. Tailoring engagement approaches to address these specific needs can enhance the effectiveness of the interactions. For example, county officials might be more interested in the economic impact on the county, while city leaders might focus on local job creation and infrastructure needs.
  4. Leveraging Virtual Tools: In today's digital age, virtual tools such as video conferencing and online collaboration platforms can facilitate engagement with stakeholders who may be geographically dispersed or have limited availability for in-person meetings.
Case Studies
Several case studies highlight the importance of effective stakeholder engagement. In one company relocation managed by Kroll, the cohesive efforts of local leadership, including the judge, mayor, college, utilities, and permitting authorities, played a pivotal role in securing the project. Their unified approach and strong advocacy demonstrated the community's commitment and capability, making the location highly attractive to Emerson.

In another example, site selection was helped along by early engagement with local stakeholders in multiple states that allowed Kroll to navigate complex regulatory environments and secure necessary approvals for a carbon capture project. The proactive and tailored engagement strategies ensured that all key stakeholders were aligned and supportive of the project.

Takeaway
Effective engagement with local stakeholders is crucial for successful site selection in manufacturing projects. By identifying key stakeholders, initiating early and proactive engagement, maintaining regular communication, and tailoring engagement approaches to address specific needs, manufacturing executives can build strong relationships and secure necessary approvals. Leveraging virtual tools can further enhance the effectiveness of stakeholder engagement. Prioritizing stakeholder relationships not only facilitates the site selection process but also enhances the overall attractiveness of a location, ensuring long-term success for both the company and the community.

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