Secrets to Site Selection

Nucor. CMC Metals. The Clorox Company. What do each of these companies have in common, besides committing to significant investments and job creation in West Virginia? Long before the celebratory announcements were made, there was a competitive site selection process.

The competition among states for economic development projects is fierce. With a finite number of expansion and relocation projects happening each year, states and communities strive to demonstrate how they offer all the criteria companies need to be successful. The West Virginia Department of Economic Development (WVDED) is no stranger to competing, and winning, large projects.

Site selectors play a unique role in this process. In simple terms, site selectors are expert advisors tasked with assessing the advantages and disadvantages of states and communities and recommending a location that presents the least amount of risk for the company.

The availability of data has made desktop research and analysis a critical element in the search for the best location. Data on demographics, workforce, cost of living, housing, taxes, utility rates, transportation logistics, material supply chains and many other variables are readily available. Site selection firms are investing in and embracing data as a significant tool in the location decision making process.

Early in the site selection process, states often don’t know they’re under initial consideration. A site selector working on behalf of a company that desires to build a new facility in the Eastern U.S. may initially evaluate a dozen or more states and then narrow the list down based on feedback from the company. Acknowledgement that a state is under consideration usually comes in the form of a project summary and request for information (RFI) from a site selector.

The project summary and RFI contain a description of the project along with key information needed for the WVDED to locate sites or buildings that meet the criteria. Requirements like the amount of acreage or size and type of building needed; utility capacities; and whether the project requires access to a river, rail, major highway or port are just a few of the criteria found in a project summary. The project timeline, capital investment and projected employment figures are also included. No two projects are the same, so requirements can vary greatly depending on the industry and size of the project.

RFI deadlines are usually seven to 10 days, and expansion and relocation projects borne out of the COVID-19 supply chain disruptions have shortened response times.

Site selectors have the responsibility of evaluating submissions from each state to create a short list of the best sites. Top sites undergo further evaluation, including a visit from the site selector and company representatives. For states whose sites don’t make the list, this is where the process ends.

Site visits are an opportunity for the WVDED to showcase West Virginia’s strengths and the qualities that set it apart from competitors. It’s also a chance to collaborate with county and regional economic development organizations and engage our state, regional and community partners to provide expertise on topics ranging from permitting to education and workforce training programs. It’s also a chance to share the success stories that aren’t reflected in the data.

One aspect of the site selection process the WVDED is working to improve is the availability of sites that are ready for development. Failure to have a site ready is one of the top reasons states are eliminated from the site selection process. With shorter project timelines becoming the new reality, site inventory must be ready, or have a plan to become ready, within a defined time period. Environmental site assessments must be complete and utilities must be available at the site in order for West Virginia to remain competitive. The West Virginia Legislature recognized this need and passed House Bill 4002 in 2022 to create the Certified Sites and Development Readiness Program, a critical component in West Virginia’s future success in attracting new investment.

Attracting new companies to the Mountain State is a team effort that takes everyone pulling the rope in the same direction to create wins for all West Virginians.