allabouteconomicdevelopment

 

One key questions by several economic development officials is to figure out how big and national companies decide where to find job creating facilities similar factories, headquarter buildings, research and development centers as well as warehouses.  The truth is, the answer is quite simple, these firms base their decisions on location on business basics such as the proximity to both customers and suppliers, labor market consideration , infrastructure conditions and accessibility to affordable energy. In addition to that, clustering play a vital role especially for companies that are in the emerging technology.

 

Still, the process of site location has become more complex and less rational.  Thus, it requires the involvement of site location consultants like Mark Williams, which present themselves as indispensable middlemen between companies that decide where to locate their facilities and communities that are seeking investments.  The use of consultants is not objectionable.

 

The issue is that, consultants persuaded both corporate executive as well as local economic development officials that the utilization of subsidies is inevitable part of site location procedure.  Consultants have created fear to the communities that they would be shunned by large corporation not unless they can develop appealing business condition, which normally includes incentives similar to the availability of corporate tax breaks, infrastructure assistance and low cost financing. At the same time, companies are made to contemplate they're fools unless they have extract the best subsidy deal from a community despite the fact that issues similar to taxes are just minor part of the decision. Visit http://www.encyclopedia.com/topic/economics.aspx for facts about economics.

 

All this is to the edge of the site location consultants who normally work both side of street, getting paid by the communities to provide subsidy-laden deals that might cause local fiscal distress and at the same time, by various companies that might be seduced by the unnecessary subsidy packages and be distracted from the business basics.

 

The fact that these site location consultants are allowed to work in both side is already an unfortunate thing as it proves that the public sector is disorganized and putting the company's divide and conquer method left the public officials be in a weak position. They will be able to command the loyalty of the strategic development group consultants only if the public officials were unified.

 

The consultants aren't exerting much effort as the subsidy system has become so routine. What they do quite often is disregarding important features that the company needs.

 

 

In an effort to have a productive economic development, public officials and the community has to work together as a whole.