GLOBAL IT COMPANY
A rapidly expanding technology company with clients consisting of Fortune Global 1000 has international operations with a concentration in the U.S. The company services technology needs for the manufacturing, logistics, retail and financial services industries.
As client acquisition accelerated, capacity could no longer be met within existing operations. There was tremendous stress trying to meet customer demand. There were labor shortages, lack of available space and limited capital to expand or relocate existing operations.
Economic Incentives Advisory Group (EIAG) was engaged to identify states with a business friendly climate and labor force that could meet the client’s operational objectives. Instead of concentrating on a specific city and state, EIAG created a competitive environment amongst a number of states and localities that could meet the expansion requirement. Request for Proposals (RFP) were developed and sent to the various locations.
Each locality responded with an incentives package specific to the forecast of jobs being created, capital investment and proposed training expenditures. Initially, the proposals received were “generic” in nature. EIAG then sent a follow-up communication demonstrating where each community needed improve to maintain competitive for the expansion. The final rounds of incentives packages consisted of cash, tax credits, utility discounts, property tax abatements and in ceRtain cases – labor commitments.
Through this initiative, EIAG was able to lower the costs associated with opening new facilities. These funds, abatements, credits and other incentives are instrumental in achieving greater profitability – more rapidly.