Business Recruitment in a Rural Environment

Business Recruitment in a Rural Environment

Brad N. Hall, IOM, EDI, MBAManager of External AffairsKentucky Power Company

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What is Economic Development?

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ED in East KY

Challenges for ED in Eastern Kentucky Declining population

Unorganized ED effort

Infrastructure Challenges

Opportunities for ED in Eastern Kentucky Available work force

Low cost of living

Affordable, available land

Strong legislative representation

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Professional Analysis

• InSite Project – Phase I– Must create a regional economic development organization – a

Champion– Develop viable client-ready product

• InSite Project – Phase II– Property Inventory– Prioritized potential sites in Eastern KY

• InSite Project – Phase III– Creating Two Client-Ready Industrial Parks– Marion’s Branch Industrial Park – Pikeville– Coalfields Industrial Park -- Hazard

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Economic Development

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How Can Eastern KY Compete?

• Sites and Buildings

• Marketing Strategies for Sites and Buildings

• Business Recruitment Strategies

• Business Retention Strategies

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Sites and Buildings

• Inventory Properties in the Region– Your Community– Your County– Regional Industrial Parks

• You must have something to sell– Itemize and know the characteristics of your properties– Determine the fatal flaws of the properties

• Know the stakeholders to assist with each property

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Sites and Buidlings

Winning Site Characteristics•Zoned industrial•Proximity to infrastructure – with planned improvements

– Excess sewer capacity (>250,000 GPD)– Excess water capacity (>250,000 GPD)– Fiber Capacity to the Site– Excess Power Capacity to the Site (10 MW Optimal)

•Conduct all site due diligence•Master plan the park

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Sites and Building

Eastern KY Industrial Sites•Gateway Business Park•Coalfields Industrial Park•Honey Branch Industrial Park•East Park•Marion’s Branch Business Park•Other parks in SOAR territory

Are we Planning Other Sites?

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Coalfields RFI Sample

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Coalfields RFI Sample

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Marketing Strategies

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Marketing Strategies

• Partner with other organizations– Chambers, SKED, SOAR, Utilities, Industrial

Authorities, ADD’s, Kentucky United, and local governments

• Keep Your Property Inventory Up-to-date• Information must be readily available online

– Website dedicated to marketing properties• Target Markets based on your assets

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Marketing Strategies

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Business Attraction

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Business Attraction

• Community Readiness• Develop Your Response Team

– Chambers, SKED, SOAR, Utilities, Industrial Authorities, ADD’s, and local governments

• A Website Dedicated to Your Properties• Generate Prospects (Marketing)

– Cabinet for Economic Development– Kentucky United– Electrical Utilities

• Understand the RFI (Request For Info)

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Business Retention & Expansion

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Business Retention & Expansion

• Most ED occurs from existing businesses• Does your Community have a BRE plan?• Set up meetings with existing industry• Know your industry’s supply chain• Assist in making it easy for them to do business• It is easier to keep the investment you have

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Recruiting Fundamentals

• Profit Driven – Investment for purpose of return• Deadline driven – Both the site selection and the

project• Competitive – Multiple location options• Comprehensive – Complex decision involving

most functional areas• Risk averse – “Shovel Ready”

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Who Is Responsible for Doing All This Work in Our Region?

• County Government?• City Government?• Private Industry?• Chambers of Commerce?• Local Economic Developers?• Utility Providers?

Someone must be in charge of the ED effort!

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What will make you a Winner?

Questions?Brad N. Hall, IOM, EDI, MBA

Kentucky PowerManager of External Affairs

Email: bnhall@aep.comOffice: 606-437-3790