| Business retention/expansion and business attraction/recruitment are the two major categories of economic development work in relation to companies. Both require basic product and community development. Last month we talked about setting the table for economic development with a comprehensive website, an active business retention and expansion program, local and regional partnerships, product development and working relationships with workforce development and education partners. This month we want to focus on business attraction and recruitment with the question: Why doesn’t new business always come to the table?
One response is that they may not know about Kitsap County and its opportunities. Economic development advertising and marketing is challenging at best. Thousands of communities nationwide, and in some cases worldwide, are competing for business expansion and relocation projects. Thanks to the attention that the city of Bremerton and the Bremerton/Kitsap MSA have gained in the past 12-18 months, part of that work is being done now. It is our job to capitalize on that attention.
Perhaps a new business is at the table, but they are still gathering the information necessary that would make the final decision regarding relocation or expansion. The KEDC has several active recruitment cases that fall into this category. Two were opened in 2003, two in 2004, one in 2005 and two this year – the delays are based on property details, contract award and legislative action.
It is possible that Kitsap was attractive to the potential new business, but another community’s table was set with a different arrangement of offerings. Incentives in the form of tax rebates, workforce training programs or sweet deals offered by another state, county or city might be at play to entice a company to another location. Proximity to suppliers or an interstate freeway is also an impact that affected past cases here.
An example in this area is a company that is manufacturing “green” food packaging. They were interested in Kitsap, but ultimately chose another Washington County that could offer rural loan incentives and was also closer to their preferred supplier. In another instance, the company that had liked Kitsap County in 2005 as the relocation site for a small medical supply company selected instead a facility on the I-5 corridor in early 2006. The majority of their clients served are along I-5 and it didn’t pencil out for them to locate here. A third company would have built two 300,000 SF buildings in Bremerton. Kitsap was their top choice because of the property shown, the partners brought to the table for discussions and the workforce. However, the power costs were considerably less in eastern Washington and they selected a site that met their financial needs.
Some prospects may simply change their mind and decide to not make the move at all. In late 2005, a King County company had planned to open a satellite facility in Kitsap County. After a few setbacks with the selected location, the owner decided to continue trucking the work to his shop in King County. In another instance, a company considering opening a back office facility in Washington State put the project on indefinite hold.
Another factor in this area is funding. Many times, a company’s ability to relocate or start a business is based on obtaining a low interest loan, grant funding or capital. It is possible in some cases the company does have an adequate plan and/or team to obtain the necessary funding. In other cases, the funding is provided through incentives not currently offered in Kitsap County. Exploring additional funding options and expanding resources in this area is a continuing focus for the KEDC.
Kitsap County may simply not have the desired product and/or location in its inventory. Proposal requirements such as close proximity to a major interstate; vacant manufacturing facilities 100,000 square feet and up; vacant back office facilities 40,000 square feet and up; and close proximity to an international airport have eliminated Kitsap County in past cases. Other requirements for relocation or expansion can be product or workforce based. Heavy water usage for chemical production, rubber compression molding capabilities for partner firm, wood by-products and a vacant food processing plant are other cases that were not a match for Kitsap.
While this article focuses on why not, it should be noted that there have been successes in this area. In recent years, the following companies have located in Kitsap County with assistance provided by Kitsap EDC: Lavry Engineering; Teletech (call center for Nextel); Gilmore Research Group; Dimension4; 21st Century Systems; Beck Engineering and American Financial Solutions. Pending cases that are strong candidates for moving to Kitsap in the next twelve months include: a biometric software company; an entertainment software company; a marine manufacturer; a specialty food processor and a fuel cell manufacturer.
For more information about the KEDC and what Kitsap County has to offer business, please visit our website at www.kitsapedc.org. | 