In 2007, Jim Glenn, president of Titan Spring, Inc. relocated his company from Southern California to Hayden, Idaho. What prompted the move and how is life today? We sat down with Glenn as he shared his thoughts on doing business in the Inland Northwest - and on his relocation experience.
Showing posts with label business relocation. Show all posts
Showing posts with label business relocation. Show all posts
Friday, January 4, 2013
Tuesday, March 13, 2012
North Idaho recruit Titan Spring featured on Invest Northwest
Titan Spring, a manufacturer primarily supplying the aerospace industry, relocated to Hayden, Idaho from Southern California. The company sought improvements to the bottom line and quality of life for its employers and found both when it made the move four years ago, Jim Glenn, the company’s president said on KHQ-TV’s “Invest Northwest” program.
Technology allowed Titan Spring to move even though much of its customer base remains in Southern California. Glenn said the company traded traffic congestion, a high cost of living and troubling business climate for a great quality of life, reduced operational costs and welcoming business environment.
“Up here they love you,” Glenn said of the community. “In California they hate you. You’re a business, you’re all things evil associated with a business person. We’re welcomed with open arms here, and people can’t do enough for you.”
View the rest of Glenn’s comments here and watch Paul Kimmell of the Inland Northwest Economic Alliance discuss the region’s economic prospects on “Invest Northwest.”
Technology allowed Titan Spring to move even though much of its customer base remains in Southern California. Glenn said the company traded traffic congestion, a high cost of living and troubling business climate for a great quality of life, reduced operational costs and welcoming business environment.
“Up here they love you,” Glenn said of the community. “In California they hate you. You’re a business, you’re all things evil associated with a business person. We’re welcomed with open arms here, and people can’t do enough for you.”
View the rest of Glenn’s comments here and watch Paul Kimmell of the Inland Northwest Economic Alliance discuss the region’s economic prospects on “Invest Northwest.”
Wednesday, August 31, 2011
Talking economic outlook on KKZZ radio in S. Calif.
California has become a tough place to do business. State government is a mess, pension funds are out of control, and worker's compensation costs are sky high.
It's true that those conditions may be a little more common given today's economy. The problem is California's been this way for 25 years. They simply can't seem to get their act together to run the state.
You start running the numbers and it does not take long for businesses to figure out they can save a lot of money by leaving California. I recently had a chance to discuss the challenges facing the state's business and opportunities they are finding elsewhere with Ron Tunick, a Southern California-based business coach and host of the radio program, "The Business of Life."
We talked about the benefits to small- or medium-sized businesses of looking out of state to escape the high cost of California and burden of its high-tax structure. Businesses considering relocation or expansion weigh many factors, looking for such things as:
It's true that those conditions may be a little more common given today's economy. The problem is California's been this way for 25 years. They simply can't seem to get their act together to run the state.
You start running the numbers and it does not take long for businesses to figure out they can save a lot of money by leaving California. I recently had a chance to discuss the challenges facing the state's business and opportunities they are finding elsewhere with Ron Tunick, a Southern California-based business coach and host of the radio program, "The Business of Life."
We talked about the benefits to small- or medium-sized businesses of looking out of state to escape the high cost of California and burden of its high-tax structure. Businesses considering relocation or expansion weigh many factors, looking for such things as:
- A stable, favorable tax structure, both business and personal, to minimize impacts on the company and the employees that follow
- Low-cost electrict utility rates
- Lower worker's compensation rates
- Low unemployment rate, such as what exists in Idaho
Friday, March 25, 2011
Increased optimism, new business priorities
Unsteady economic conditions have forced widespread reconsideration of what matters most. Individuals and families have made tough choices relating to household expenses and lifestyle. Companies have adjusted their business practices to be competitive in today’s evolving marketplace.
All operational aspects have been scrutinized as part of that process. Everything from building design to process efficiency to facility location has been considered in the interest of gaining a competitive advantage. In some cases, that means better positioning to seize market share during tough economic times. In more extreme – and unfortunately, not uncommon – instances, companies are fighting to stay in business.
Every year, Area Development magazine surveys corporate executives about their business plans. The survey delves into how current economic pressures impact priorities. The magazine concluded from its most recent survey that, “The economy’s gradual recovery during 2010 has resulted in increased business optimism, a rise in new facility plans, and some changes in site selection priorities.”
A few additional noteworthy observations from the survey:
Focus on product. Nearly three out of four new facilities will serve a manufacturing, warehouse or distribution purpose.
Job growth is modest. More than three quarters of new domestic facilities will create fewer than 100 jobs, although at 77 percent that number represents a slight improvement over last year’s 80 percent.
Get goods to market. Cost effectively. Highway accessibility traded places with labor costs as the most important factor, but both are still among the three top considerations along with tax exemptions.
Think sustainably. Sustainable development is on the rise. High numbers of executives are making energy-saving modifications to existing facilities (85 percent), recycling or reusing waste products (59 percent), changing supply and distribution methods (28 percent), and seeking LEED certification for new or existing facilities (23 percent).
Market reactivity desired. Shovel-ready or pre-certified sites, which speed the development process, were cited as important nearly half the time.
Clustering matters. Businesses generally want to locate near others involved in similar activities.
All operational aspects have been scrutinized as part of that process. Everything from building design to process efficiency to facility location has been considered in the interest of gaining a competitive advantage. In some cases, that means better positioning to seize market share during tough economic times. In more extreme – and unfortunately, not uncommon – instances, companies are fighting to stay in business.
Every year, Area Development magazine surveys corporate executives about their business plans. The survey delves into how current economic pressures impact priorities. The magazine concluded from its most recent survey that, “The economy’s gradual recovery during 2010 has resulted in increased business optimism, a rise in new facility plans, and some changes in site selection priorities.”
A few additional noteworthy observations from the survey:
Focus on product. Nearly three out of four new facilities will serve a manufacturing, warehouse or distribution purpose.
Job growth is modest. More than three quarters of new domestic facilities will create fewer than 100 jobs, although at 77 percent that number represents a slight improvement over last year’s 80 percent.
Get goods to market. Cost effectively. Highway accessibility traded places with labor costs as the most important factor, but both are still among the three top considerations along with tax exemptions.
Think sustainably. Sustainable development is on the rise. High numbers of executives are making energy-saving modifications to existing facilities (85 percent), recycling or reusing waste products (59 percent), changing supply and distribution methods (28 percent), and seeking LEED certification for new or existing facilities (23 percent).
Market reactivity desired. Shovel-ready or pre-certified sites, which speed the development process, were cited as important nearly half the time.
Clustering matters. Businesses generally want to locate near others involved in similar activities.
Thursday, March 17, 2011
Site selection can be a lengthy process
Selecting a location for relocation or expansion is an investment of significant time and an exercise in patience. Evaluating options requires culling large amounts of information and evaluating that data to arrive at a decision.
Most businesses consider real estate options, workforce quality and availability, training, and business climate among other factors. They weigh those factors against other communities that meet their geographic, transportation and other needs to select the best option. That process can take years of careful evaluation from start to finish.
Payoff comes when companies find the site selection sweet spot. Global Future Energy Holdings, Inc. recently announced that Spokane Valley, Wash. will become the site of its first U.S. manufacturing and distribution facility. The company began looking for a site in 2005.
Spokane Valley “stood out as an ideal location due to available sites, a strong workforce” and a partnership opportunity with another local company, Marius de Mos, the company’s president and CEO, said in a news release. GFEH, which will do business as Prestyl in Spokane Valley, met its expansion needs on multiple fronts. Those kind of synergies are what seal site selection deals.
Prestyl has developed a proprietary infrared, thin-film heating technology. The technology, common in aerospace and mass transportation applications, will be used to produce infrared heating panels that can be mounted to ceilings and walls. Ecolite Manufacturing, a Spokane Valley company that engaged Prestyl during its site search, and will be a partner in manufacturing the panels.
“This project has been exciting and unique in that it provides a multi-faceted win for our organization and the greater community – incorporating elements of business recruitment, business expansion and foreign direct investment,” said Gary Mallon, technology industry manager for Greater Spokane Incorporated, which recruited Prestyl.
Most businesses consider real estate options, workforce quality and availability, training, and business climate among other factors. They weigh those factors against other communities that meet their geographic, transportation and other needs to select the best option. That process can take years of careful evaluation from start to finish.
Payoff comes when companies find the site selection sweet spot. Global Future Energy Holdings, Inc. recently announced that Spokane Valley, Wash. will become the site of its first U.S. manufacturing and distribution facility. The company began looking for a site in 2005.
Spokane Valley “stood out as an ideal location due to available sites, a strong workforce” and a partnership opportunity with another local company, Marius de Mos, the company’s president and CEO, said in a news release. GFEH, which will do business as Prestyl in Spokane Valley, met its expansion needs on multiple fronts. Those kind of synergies are what seal site selection deals.
Prestyl has developed a proprietary infrared, thin-film heating technology. The technology, common in aerospace and mass transportation applications, will be used to produce infrared heating panels that can be mounted to ceilings and walls. Ecolite Manufacturing, a Spokane Valley company that engaged Prestyl during its site search, and will be a partner in manufacturing the panels.
“This project has been exciting and unique in that it provides a multi-faceted win for our organization and the greater community – incorporating elements of business recruitment, business expansion and foreign direct investment,” said Gary Mallon, technology industry manager for Greater Spokane Incorporated, which recruited Prestyl.
Wednesday, February 16, 2011
Look for communities investing in workforce training
Specialized skills and workforce training are important to any successful business, large or small. Relocating and expanding businesses often make workforce quality a top priority because everything else becomes moot without it. Communities with a dynamic, demand-driven workforce system prove the best solution for a growing company.
Progressive communities are expanding their training offerings. These programs improve marketability for those just entering the workforce and retrain displaced workers who likely already have considerable skills, but need additional industry-specific training. The result is a better prepared employee for companies.
Voters in three North Idaho school districts recently approved two-year property tax increases to build a $9.5 million professional-technical high school. The Kootenai Technical Education Campus is a partnership between business and industry leaders, local school districts and manufacturers. The school will accommodate 180 students and initially provide specialty training in health occupations, welding, construction and automotive technology when it opens in 2013. Curriculum is being developed to expand the instructional offering to include training in hospitality, drafting, manufacturing, and airframe and power plant mechanics.
Those plans follow the opening of the Kalispel Career Training Center in Priest River, Idaho. Programs in advanced welding, metal fabrication and culinary arts are available. Additional programs are being developed to address upcoming workforce needs. Program partners include the Kalispel Tribe of Indians, Pend Oreille County Economic Development Council and Public Utilities District, Seattle City Lights, Cusick School District, Selkirk School District, Newport School District, Community Colleges of Spokane, Washington State University Extension Office, Port of Pend Oreille, Teck, Heater Craft, Work Source, Institute for Extended Learning, and Pend Oreille County.
Progressive communities are expanding their training offerings. These programs improve marketability for those just entering the workforce and retrain displaced workers who likely already have considerable skills, but need additional industry-specific training. The result is a better prepared employee for companies.
Voters in three North Idaho school districts recently approved two-year property tax increases to build a $9.5 million professional-technical high school. The Kootenai Technical Education Campus is a partnership between business and industry leaders, local school districts and manufacturers. The school will accommodate 180 students and initially provide specialty training in health occupations, welding, construction and automotive technology when it opens in 2013. Curriculum is being developed to expand the instructional offering to include training in hospitality, drafting, manufacturing, and airframe and power plant mechanics.
Those plans follow the opening of the Kalispel Career Training Center in Priest River, Idaho. Programs in advanced welding, metal fabrication and culinary arts are available. Additional programs are being developed to address upcoming workforce needs. Program partners include the Kalispel Tribe of Indians, Pend Oreille County Economic Development Council and Public Utilities District, Seattle City Lights, Cusick School District, Selkirk School District, Newport School District, Community Colleges of Spokane, Washington State University Extension Office, Port of Pend Oreille, Teck, Heater Craft, Work Source, Institute for Extended Learning, and Pend Oreille County.
Wednesday, February 9, 2011
Retaining strong companies important priority
Taking care of prospering companies is every bit as important as recruiting the next big thing, especially in these days of a “new normal” economy. Regions that can package affordable and available real estate, a talented workforce, and a reasonable regulatory environment in a supportive business climate have a leg up on their competition.
Schweitzer Engineering Laboratories (SEL) has found that in the Inland Northwest. The homegrown power protection industry leader is growing in its own backyard. Work is underway on a new 105,800-square-foot, mixed-use engineering office and manufacturing facility in Lewiston, Idaho. The site-cast concrete tilt-up building is being constructed on 25 acres in the Lewiston Business Technology Park, just across the state line from SEL’s corporate headquarters in Pullman, Wash. SEL is also planning a new 70,000-square-foot Solution Delivery Center in Pullman. The three-story building will include six customer-training rooms, conference rooms and engineering and research space.
SEL, which creates products that minimize blackouts and electrical damage, is part of a major federal Pacific Northwest Smart Grid Demonstration Project. The company benefits from its proximity to Washington State University and the University of Idaho, located eight miles apart in Pullman and Lewiston, respectively. Both have strong engineering schools, and WSU graduates have been ranked by the Wall Street Journal among the Top 25 most sought after by corporate recruiters.
Schweitzer Engineering Laboratories (SEL) has found that in the Inland Northwest. The homegrown power protection industry leader is growing in its own backyard. Work is underway on a new 105,800-square-foot, mixed-use engineering office and manufacturing facility in Lewiston, Idaho. The site-cast concrete tilt-up building is being constructed on 25 acres in the Lewiston Business Technology Park, just across the state line from SEL’s corporate headquarters in Pullman, Wash. SEL is also planning a new 70,000-square-foot Solution Delivery Center in Pullman. The three-story building will include six customer-training rooms, conference rooms and engineering and research space.
SEL, which creates products that minimize blackouts and electrical damage, is part of a major federal Pacific Northwest Smart Grid Demonstration Project. The company benefits from its proximity to Washington State University and the University of Idaho, located eight miles apart in Pullman and Lewiston, respectively. Both have strong engineering schools, and WSU graduates have been ranked by the Wall Street Journal among the Top 25 most sought after by corporate recruiters.
Monday, January 10, 2011
Quality of life part of relocation decision
Companies looking at relocation or expansion consider the business case first. A clear understanding of real estate, labor, power and other costs of doing business are a must, especially in today’s economic environment. Communities without a business case that makes sense are excluded from consideration early in the process.
Once the numbers become enticing, evaluation typically turns to other factors. Quality of life is one of those hard-to-quantify, but important intangibles. Everyday influences such as housing costs, commute times and recreational opportunities all help set communities apart.
Titan Springs, an aerospace parts manufacturer founded in Southern California, moved to Hayden, Idaho. The ability of its employees to own a home without having to commute an hour and a half from Lancaster to Los Angeles was an important factor in that decision. Learn more about quality of life and its impact as a relocation consideration in this interview.
Once the numbers become enticing, evaluation typically turns to other factors. Quality of life is one of those hard-to-quantify, but important intangibles. Everyday influences such as housing costs, commute times and recreational opportunities all help set communities apart.
Titan Springs, an aerospace parts manufacturer founded in Southern California, moved to Hayden, Idaho. The ability of its employees to own a home without having to commute an hour and a half from Lancaster to Los Angeles was an important factor in that decision. Learn more about quality of life and its impact as a relocation consideration in this interview.
Wednesday, December 22, 2010
Talking about California's economy on "The Business of Life" radio show
Business consultant and radio personality Ron Tunick recently invited me on as a guest of his show, “The Business of Life” in Ventura, Calif. We discussed that state’s economic challenges and their impact on small business. Tunick offered several thoughts about California (“Our economy is in real trouble”), Idaho (“If I had to go to one place, it’d be Hayden Lake, Idaho. God lives there, am I wrong about that?), and Washington (On Spokane: “You talk about a sleeper city in this country where there’s great opportunity and a great workforce. And, for $250,000, you can buy all the home you want.”)
During the 30 minute interview, topics ranged from the disparity in tax structures and state budget troubles to commute times and air transportation. We touched on business considerations specific to small manufacturers. Tunick offered that California needs to get better business retention efforts, before concluding that under current economic conditions: “If you own a business get out of here get up there” to Washington and Idaho. You can listen to the interview here.
During the 30 minute interview, topics ranged from the disparity in tax structures and state budget troubles to commute times and air transportation. We touched on business considerations specific to small manufacturers. Tunick offered that California needs to get better business retention efforts, before concluding that under current economic conditions: “If you own a business get out of here get up there” to Washington and Idaho. You can listen to the interview here.
Tuesday, November 23, 2010
Workforce resouces can be invaluable
An educated, skilled workforce from which to draw is important to companies looking to attract and retain the best talent. Proximity to higher education institutions makes a big difference in the location decision, especially when they are clustered in a desirous area where students can enjoy a lower cost of living. It really becomes advantageous to companies when those colleges and universities work together to produce graduates in high demand fields, such as computer science and engineering, and support small business development through incubator programs. State universities in particular are turning out the best workers and often providing incubator space that is a tremendous asset to entrepreneurs and start-up businesses. Learn more in this interview.
Tuesday, November 16, 2010
Follow careful process to evaluate relocation options
Relocating a company involves much more than finding affordable, available real estate for a new location. Companies considering relocation have a lot at stake and should take their time making a decision – whether they ultimately stay or move. Ongoing operating costs have to be considered as well as key employee retention. Following a carefully laid out process will produce the best results.
Get to know each other. Spend time getting to know a community and what it has to offer. Companies should expect to be visited a couple dozen times by community representatives as part of the information gathering and diligence process. This allows both sides to determine if it is a good match.
Compare costs. Communities should be upfront about the cost of doing business and willing to compare them against several other locations if necessary. Typical comparisons include basic bottom-line considerations, such as workers compensation, labor costs, utility rates and unemployment insurance.
Consider key employees. Small-to-medium-sized businesses, especially manufacturers, have key employees they need to be successful. Identifying those key employees and involving them in the relocation process is a big issue. Some companies bring key employees on community visits and site tours to gain their input and buy in.
Friday, November 5, 2010
WSJ: State schools turning out best workers
Corporations and site selection consultants consistently rate workforce considerations of high importance in the relocation and expansion decision. Factors such as availability, cost and training programs are always critical to companies evaluating a location.
Jennifer Merritt, career editor at the Wall Street Journal, explained that recruiters value the work readiness of state school students even above the elite private schools. The WSJ asked the nation’s largest employers which schools produced the most academically prepared students with the most relevant training and best ability to succeed and grow with their companies. Recruiters indicated they found state schools produced the best students and were most eager to forge corporate partnerships, according to Merritt.
The six-month WSJ survey reaffirmed the Inland Northwest’s reputation for having a high-quality, available workforce. The newspaper ranked Washington State University graduates among the Top 25 most sought after by corporate recruiters.
WSU was the only Washington school on the WSJ list. The data is based upon 43,000 hires made by public and private corporations, government agencies and nonprofits over the past years in high-demand areas like engineering, consulting and finance.
WSU has strong business, engineering, and science programs, making its students a good fit for those needs. WSU has four campuses, including its main location in Pullman, Wash. and a large branch in Spokane, with 12 colleges, 200 fields of study and more than 100 majors.
Jennifer Merritt, career editor at the Wall Street Journal, explained that recruiters value the work readiness of state school students even above the elite private schools. The WSJ asked the nation’s largest employers which schools produced the most academically prepared students with the most relevant training and best ability to succeed and grow with their companies. Recruiters indicated they found state schools produced the best students and were most eager to forge corporate partnerships, according to Merritt.
The six-month WSJ survey reaffirmed the Inland Northwest’s reputation for having a high-quality, available workforce. The newspaper ranked Washington State University graduates among the Top 25 most sought after by corporate recruiters.
WSU was the only Washington school on the WSJ list. The data is based upon 43,000 hires made by public and private corporations, government agencies and nonprofits over the past years in high-demand areas like engineering, consulting and finance.
WSU has strong business, engineering, and science programs, making its students a good fit for those needs. WSU has four campuses, including its main location in Pullman, Wash. and a large branch in Spokane, with 12 colleges, 200 fields of study and more than 100 majors.
Tuesday, October 19, 2010
VIDEO: Impact of state budget crises on the relocation decision
Companies may not be moving, but they are planning. Businesses often take up to three years to consider locations, evaluate what each has to offer and make a decision. How states handle current budget challenges is being watched closely. The outcomes will prove telling to companies considering another state.
When companies do relocate, they’re going to move to states that can manage their budgets. They will look to minimize future state budget uncertainties. The state of Idaho as an example balanced its budget without a tax increase – and it didn’t take them forever to do it. The state of Washington is getting its budget balanced while looking for tax cuts, so it isn’t going to be a burden for the business community. Companies are going to look for states that can do that. Learn more about relocation decision factors in this interview.
Friday, September 17, 2010
VIDEO: Bob Potter discusses Southern California’s business climate
Southern California companies concerned about the state business climate have taken a conservation approach with their capital until the economy improves. While businesses wait, they are watching the state wrestle with questions about how to fund its massive pension fund and balance the budget. The state’s tax structure, regulatory issues, and workers compensation remain ongoing concerns regardless of economic conditions. Learn more about what Southern California companies are saying in this interview.
Tuesday, August 10, 2010
The Lure of Greener Pastures
Last fall, an article ran in the San Gabriel Valley Tribune, "The Lure of Greener Pastures," highlighting the reasons why I believe that companies are leaving California and heading to places like the Inland Northwest to do business. Similar articles ran in the Inland Empire Business Journal, the Pasadena Star New, and the San Fernando Valley Business Journal - all illustrating why the low business costs and high quality of life in Eastern Washington and Northern Idaho are enticing companies to move to our region.
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