Competition for JOBS

It is time to consider refocusing on the demand for land in the near future. There has always been competition between states, counties, and local governments to attract companies for their jobs. In many cases, this is accomplished through economic development groups. These organizations are quasi-government entities having the support of their governing bodies. Their goals include encouraging companies to expand their operations or relocate new facilities in their community.

As we come out of this “great recession”, the competition will become more intense as companies expand. As you know, Texas added more jobs than the rest of the states combined due to a pro-business environment. In locations not structured the same way, governments will resort to making offers or incentives to companies to create jobs through expansion or relocation. These enticements will be difficult to refuse!

In some cases, municipalities will use eminent domain to amass properties for large business complexes. Some local governments will use tax incentives, etc. to make a deal.

In either case, LAND is the important component i.e. location, existing infrastructure, etc. In the case of Boeing and their plant in Charleston, SC, the Charleston County Aviation Authority LEASED 240 contiguous acres to the Boeing Company.

Not having to purchase land for development purposes is a significant. Think about not having to use cash or obtain financing to purchase the property.

The following illustration is from The Post and Courier (www.postand courier.com) and it clearly illustrates all of the “carrots’ used to bring Boeing and Charleston, SC together.

Post and Courier illustration by Gill Guerry

 

The national discussion or debate about Boeings new plant seems to be about unions. In my opinion, the story is in the incentives and the LAND made available to Boeing. This definitely improved Boeings cash flow and decreased their initial start-up costs which solidified the deal. What is your local government doing to attract companies and their jobs and taxes to your community?