 FLEETGUARD NELSON
This subsidiary of Cummins was searching for a southeastern U.S.
location to produce auto parts. The company’s real estate
advisor identified 8 communities that featured 250,000 SF
buildings (to house 400 workers) meeting physical criteria. Per
the client’s request, WDG Consulting identified 4 greenfield (no
buildings but acceptable sites) to compare against the 8
communities with vacant space.
WDG Consulting then proceeded to conduct a two stage analysis to
identify the best long-range location. In Stage One, we
performed a desktop review to compare and rank the 12 candidate
locations. Comparative data included population, adult
educational attainment, labor force, number of semiskilled and
unskilled manufacturing workers, unemployment rate, electric
power costs, real estate costs, tax rates, air quality, motor
carrier service, possible incentives, manufacturing wage rates,
unionized operations, union election results, roster of major
industrial employers, and newly announced manufacturing plants
(a signal of future labor market competition). Statistics were
drawn from WDG Consulting’s proprietary database,
published/online sources, and contact with each area’s economic
development agency. Three areas emerged as the strongest
locations after Stage One research.
In Stage Two WDG Consulting undertook field based, due diligence
evaluation of the three finalist locations. This included:
WDG
Consulting then assessed how well each location could support
the new facility’s most critical operating requirements. These
embodied the following:
 |
Affordable wage levels, now and in the future
|
|
|
Ample supply of qualified workers possessing at least a high
school degree, solid basic skills, PC literacy, and ability
to work in self directed teams |
|
|
Low staff turnover |
|
|
Minimal unionization threat |
|
|
Less than 6 month lead time to commence initial occupancy
|
|
|
Moderate occupancy costs |
|
|
Competitive transportation costs including taking advantage
of backhaul opportunities |
|
|
No environmental problems associated with the site
|
|
|
Fair taxation including exemption from inventory tax
|
|
|
Ability to reach the majority of customers within next
morning delivery by motor carrier
|
|
|
Stable, reliable, low cost electric power
|
|
|
Meaningful incentives package |
After
comparing each location on the above and other considerations,
WDG Consulting recommended Waynesboro, GA (20 miles south of
Augusta) as the preferred location for the new auto parts plant.
Fleetguard Nelson accepted WDG Consulting’s recommendation and
has enjoyed success in Waynesboro, typified by:
|
|
Wage rates 15% below those targeted by the company
|
|
|
Transportation costs 10% less than those targeted by the
company |
|
|
Annual staff turnover, 25% less than the targeted level
|
|
|
Fast track building retrofit and permitting allowing
Fleetguard Nelson to commence occupancy within four months
|
|
|
Approximately $11 million in savings over 8 years derived
from an incentives package negotiated by WDGC
|
|
|
Over 1,800 well qualified workers that applied for 400
positions
|
|
