Ninety percent of anything would be considered a pretty good percentage. In site searches, 90 percent equals the percentage of data collection that site selectors complete before they pick up the phone and call an organization to delve deeper into a community, region or state, according to ED Solutions, Inc.

With such a figure and the prevalence of demographic data available on Web sites, and a wide range of information available at economic development Web sites worldwide, it would seem companies that are looking to expand or relocate should be able to develop a short list of locations based on research compiled from the Internet, speeding up the process, and perhaps bypassing the use of site consultants altogether.

The reality is that site consultants are needed more than ever due to business climate uncertainties, and the lack of data that can't be found at economic development Web sites.

Among the strengths of using the Internet in site selection is that it allows companies to undertake an investigation of an area anonymously. “Most online searches for data start at the state level and drill down through that site or by using search keyword phrases, going to regional and local sites,” says Mark James, principal, ED Solutions, Inc., a firm that works with economic development organizations, including work on enhancing and developing their Web sites.

Researchers can also qualify an organization and the people within it by searching the Internet. James says companies want to know that the economic development organization is a valued business partner that will be able to support them on an ongoing basis. An example is when a Michigan company was looking to site an auto parts operation. The firm knew it needed to be in the Dayton, Ohio, area. A staff member Googled Dayton, auto and economic development. One of the search results yielded a staff listing page for an economic development organization's staff member who had experience in the auto industry. The user made a phone call and the auto supplier now has an operation in the Dayton area.

Economic development Web sites also allow users to download content in a variety of formats, honing in on site and building data, and labor information, among numerous other data.

Some of the best systems allow users to create customized reports about the community; access GIS systems; and view high resolution maps relative to transportation logistics, supply chain efficiencies, education and existing employers in particular business clusters.

“This helps generate data that they can use that is comparable,” James says. “In regard to data, look for a source and a date.” If the information does not contain a date, the information is less reliable. James also points out that the first item site searchers look for on a Web page is the geographic orientation of the community — where the community is located relative to the market — and economic development Web sites often fail in providing this information. “I tell folks if you do that right, you are already better than 60 percent of the other folks in the market,” James says.

Hit And Miss

James is touching on some of the weaknesses of economic development organizations' Web sites. “I would say that a disquieting number of economic development Web sites focus on touting their histories or they are proud of the legacy as a community or region and end up being too focused on quality of place and not enough on the heavy lifting of the data that is necessary in order for them to survive a site selection process.”

In fact, one veteran site consultant would grade 75 percent of economic development organizations' Web sites with a C or below. Dennis Donovan, principal, Wadley Donovan Gutshaw Consulting, says that the early part of a site selection project features speed and efficiency; however, the process features far less efficiency, effectiveness and timeliness during the middle stages of a project due to weak economic development Web sites.

In the early stages, site consultants, ancillary providers such as attorneys or real estate brokers, and senior executives of small companies researching communities, will find a profusion of information sources to get started. This information, which can be purchased or licensed, as well as free information, has allowed site consulting groups such as Donovan's to build proprietary databases. “This has greatly facilitated our ability to conduct the up front part of location analysis very efficiently,” Donovan says. “When you start reaching out to the communities — that is when the process gets time consuming.”

Mike Mullis, president and CEO of J.M. Mullis, Inc., says the Internet site search process is still embryonic in nature, even though it has been used for years. “Countries and states and locations are still somewhat guarded in the level of information they apply to a public Internet access capability,” Mullis says. Some economic development sites contain password limited access to certain information, requiring users to register as qualified consultants. Mullis says he tends to finds better information this way.

Mullis points out that companies need to keep in mind that some communities and states have more financial resources to market themselves and therefore can provide more funding for Internet data. Many times site selection teams will overlook good opportunities where those regions may not have the financial capability to develop an intense Internet presence.

Look For Hooks

Mullis, whose firm has conducted more than 1,100 site projects, advises companies to outline a set of criteria of perhaps six points, and use the Internet to match those six points to regions that are under consideration.

What's more, because there is more intensity in logistics, whether it be for the manufacturing industry or service industry or what have you, the more companies can define what the geographic region of consideration is or regions of consideration are, the better the Internet can be used in an initial location cut.

Donovan says to look for hooks at the beginning in order to start reducing the field of contenders. For instance, does the company require access to a four-lane highway or need to be located within 60 miles of a commercial airport? Perhaps the firm can't be located in area with a high level of hurricanes or an area that is prone to earthquakes. Is the project predominately labor driven or energy driven? “Once you know that than you can identify sources of data that are out on the Internet and be able to pull together what is necessary,” Donovan says.

While the Internet can provide growing companies with the ability to arrive at some decisions in the first phase of the site evaluation process, companies would be well served by working with site consultants in the latter stages of site evaluation. “In this cost-effective environment, companies are looking more to that third party objectivity so they can stand before the board and be ready for any questions from any board member that may be left field or right field, but well thought out from a third party,” Mullis says.

For more information about the companies featured in this article, visit:

ED Solutions, Inc., www.solutionsed.com

J.M. Mullis, Inc., www.jmmullis.com

WDG Consulting, www.wdgconsulting.com

The Status Of Site Selection Activity

With the numerous economic challenges facing corporations, what are they up to during the slowdown in regard to site selection activities? “We still see a fair level of activity in planning for new facilities,” says Dennis Donovan, principal, Wadley Donovan Gutshaw Consulting. While the activity level is off in certain industries, such as building materials, Donovan sees strong activity in basic manufacturing, distribution and back office projects, especially with health-related operations. “We are not seeing as nearly a precipitous decline as the media seems to think there is,” Donovan says.

“I certainly know the economy is having significant troubles,” notes Mike Mullis, president and CEO, J.M. Mullis, Inc., “and that it is outside of the boundaries of the United States.” His company is actively involved in site selection activities in seven countries, and for the most part, he sees a diminishment in the economies of all of those countries.

However, when one industry is down, such as the automotive industry, other industries will be strong, such as the aerospace sector or the distribution sector. “Our business load remains the same; it may carry us to different parts of the world for different reasons,” Mullis says. He notes that companies are spending more time in the analysis process to make sure they get the most cost effective location as possible. Strong public or private companies have the funds to do what they need to be doing and typically don't let a weak economy nor a presidential election affect their plans.

“Many companies will take this opportunity in a lull period to begin to do some things they need to do that when they were at full capacity or beyond, they didn't have the time or the ability to take a hesitation to add a new component,” Mullis says.

Donovan notes companies want to be ready to capitalize on growth opportunities when the economy is again in a robust situation. No matter how small or large a company is, they should be taking holistic views of their portfolios to determine information such as what capacity will be required, why it will be required; and take into account the global perspective. Look at what “we are trying to do, not just with this facility but what is the organization trying to do, and how does this new facility fit into that,” Donovan says. Other factors to consider include market penetration, cost reductions, acquisition of knowledge and risk minimization, among others.

To learn more about these consulting companies, visit www.wdgconsulting.com and www.jmmullis.com.

How Are Your Peers Researching Prospective Locations?

In a study conducted by Development Results LLC in the second quarter of this year, the highest yielding search phrases when searching economic development Web sites were:

1. An organization's name

2. A city/region name and economic development

3. Incentives offered in a region

4. Resident company name (i.e., The Boeing Co.)

5. Region name, if different from the city

6. Organizational URL (without .com; .net or .org)

7. Name of a campaign initiative or fundraising

8. City/region name “maps”

9. City/region name “counties”

10. City/region name “industries”

Development Results conducts benchmarks on Web statistics for the economic development community. The firm tracks more than 10 million page views per year on ED sites, or nearly 30,000 pages per day.

The company also found that the pages that were most visited include:

1. About us

2. Programs offered by the organization

3. Data center of facts and figures (information and data on the region)

4. News

5. Relocate and expand (pitches to attract people and companies to the region)

6. Find property

7. Site selection services

8. Workforce data and information (within a data center)

9. Database of companies or largest employers

10. Maps of the area

What's more, the survey also tracked the data site selectors and companies take with them when they leave an economic development Web site:

1. Economic profile/area overview

2. List of largest employers

3. Overview of the economic development organization

4. Property listings/info

5. Maps

6. Detailed demographics

7. Incentives

8. Regional rankings

9. Organization's strategic plan

10. Cost of living, cost of housing

To learn more about Development Results, visit www.developmentresults.com.