Site Selection and Incentives Negotiation for High Tech Manufacturer in US
Background
A bedding manufacturer identified potential sites in two US states for a manufacturing facility that would serve its clients in the northeast market. The manufacturer retained RBG Global to analyze state and local investment climates (workforce, tax, logistics) and negotiate incentives and tax credits packages with both states.
Action
RBG Global first worked with the client to identify its labor needs and specific locations for shipping and integrated this information into its analytical framework. At the same time, it identified the universe of available tax credits and financial incentives from each state. RBG Global conducted extensive negotiations in both states.
Result
Whereas the investor was ambivalent about its upcoming decisions at the outset of the project, the results of the analysis and negotiations revealed the optimal state for serving the market. Ultimately, the client chose the state that had access to better shipping corridors, favorable labor laws, and a $1.2 million tax credit (RBG Global had negotiated.)