SITE SELECTION TRENDS IMPACTING YOUR COMMUNITY

Presented by King R. White

June 13, 2012

About Site Selection Group

Full-service location advisory and economic incentives firm Based in Dallas, TX with branch offices in Austin, Cincinnati and Phoenix Cover 1,500+ metro areas in 75 countries 1,000+ corporate site selection projects completed by our executives
Economic Incentive Services

CORE LINES OF BUSINESS

Location Advisory

1,000+ economic development studies completed by our executives

$1.0B+ in economic incentive negotiated by our executives

Corporate Real Estate Services

$1.0B+ in real estate transaction value negotiated by our executives

Global network of best-in-class partners

Economic Development Consulting

The Typical Site Selection Process

PHASE

1
Community Filtering Strategy formation Business drivers Project timeline Criteria weighting Employee profile Job creation Logistics needs Infrastructure needs Capital investment Geographic preference Facility specifications

2
Desktop Site Selection Analysis Demographic analysis Workforce analysis Saturation analysis Logistics evaluation Infrastructure assessment Wage survey Real estate research Economic incentive research Operating cost analysis Decision matrix

3
On-Site Community Due Diligence State and local economic development agencies Community leaders Workforce commission Existing employers Recruitment agencies Real estate options Infrastructure providers Economic incentives Economic Incentive Negotiations Tax abatements Employee training grants Tax credits Cash grants Real estate grants Infrastructure grants Utility rebates Sales and use tax rebates Special tax districts Competition restrictions Special financing Real Estate Negotiations

Acquisitions Dispositions Sale lease-backs Build-to-suits Lease renewals Lease restructuring Subleases

RESULTS

KEY STEPS

Filter Geographic Search Area

Evaluate 8-10 Candidate Communities

Identify 2-3 Finalist Communities

Secure Economic Incentives

Secure Real Estate

Community Involvement

Critical Drivers of Site Selection Process

Headquarters
1. Labor Availability 2. Labor Cost 3. Business Climate

Shared Service & Back Office

1. Labor Availability 2. Labor Cost 3. Real Estate Conditions

IT Services
1. Labor Availability 2. Labor Cost 3. Quality of Life 4. Economic Incentives 5. Accessibility 6. Real Estate Conditions

Manufacturing
1. Labor Availability 2. Labor Cost 3. Logistics 4. Business Climate 5. Real Estate Conditions 6. Regulatory Environ 7. Infrastructure 8. Economic Incentives

Distribution Centers
1. Logistics 2. Real Estate Availability 3. Labor Availability 4. Labor Cost 5. Business Climate 6. Economic Incentives

4. Quality of Life
5. Economic Incentives 6. Accessibility 7. Real Estate Conditions

4. Economic Incentives
5. Accessibility

Global Factors Influencing Location Decisions

Geopolitical Influences

Increased Competition

Rising Global Costs

Access to Capital

Advancement of Technology

Market Uncertainty
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Changing Landscape in Site Selection

REAL ESTATE INCENTIVES WORKFORCE

Speed-toMarket

Buildings & Shovel Ready Sites

Capital Substitution

Front Loaded Packages

Increased Specialization

Trained Workforce

Sense of Entitlement

Below Market Deals

Sense of Entitlement

Cash Incentives

Market Uncertainty

Workforce Longevity

Market Uncertainty

Short Term Options

Market Uncertainty

Liberal Clawbacks

Offshore Wage Inflation

Re-Shoring

Largest Economic Incentive Packages (2011-Present)

Company Bell Helicopter General Motors (GM) General Motors (GM) GTM Development GE Transportation TRT Holdings Virtual Computing Environment Golden Living TD Ameritrade La Bodega Meat Ferris Manufacturing Dallas Plastics Corporation City Fort Worth Arlington Arlington Denton Fort Worth Dallas Richardson Plano Fort Worth Garland Fort Worth Longview State Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Incentive Capex ($M) Value ($M) $13.50 $12.00 $10.00 $9.50 $4.20 $2.50 $2.45 $2.10 $1.20 $0.90 $0.50 $0.50 $235.00 $254.00 $200.00 $60.00 $96.00 $40.00 $35.00 $8.40 $11.00 $0.00 $5.50 $5.80 Jobs Industry Function Created 0 110 180 0 775 0 434 100 490 230 100 65 Headquarters Manufacturing Manufacturing Real Estate Manufacturing Headquarters Headquarters Headquarters Business Services Headquarters Manufacturing Industry Sector Aerospace, Defence Automotive Automotive Retail Industrial Goods Leisure & Tourism Information Technology Life Sciences Services Consumer Goods Basic Materials Project Type Expansion Expansion New Project Expansion New Project New Project New Project New Project Expansion Expansion New Project New Project

Distribution Center Food & Drink

Alcon Lab Holdings Distant Lands Coffee

Albert Moving and Storage Wichita Clutch Sealed Air Cryovac Applied Concepts US Concrete Greenling Freedom Equipment Arrow Manufacturing Peerless Manufacturing Keste

Fort Worth Tyler

Wichita Falls Wichita Falls Wichita Falls Plano Euless Allen Jacksonville Wichita Falls Denton Plano

Texas Texas
Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas

$0.49 $0.37
$0.36 $0.30 $0.27 $0.25 $0.24 $0.20 $0.20 $0.18 $0.16 $0.15

$11.00 $0.37
$0.00 $0.00 $4.00 $0.50 $0.00 $0.00 $0.00 $0.00 $4.25 $0.86

750 19
60 10 40 140 45 100 40 27 85 90

Manufacturing Manufacturing
Business Services Manufacturing Manufacturing Manufacturing Headquarters Retail Headquarters Manufacturing Manufacturing Headquarters

Life Sciences Food & Drink

Services Basic Materials Consumer Goods Electronics Basic Materials Groceries Industrial Goods Industrial Goods Industrial Goods Information Technology

New Project Expansion

New Project Expansion Expansion Expansion Expansion New Project New Project Expansion New Project Expansion

Source: Site Selection Group Incentives Database

Greatest Capital Investment Projects (2011-Present)

Company City State Capex ($M) Jobs Created Industry Function Industry Sector

General Motors Bell Helicopter GE Transportation GE Transportation GE Mining WhiteWave Foods Dean Foods Frac Tech
Triumph Aerostructures Kohl's Weir SPM Virtual Computing Environment Virtual Computing Environment Wistron Green Tech In-N-Out Burgers Home Depot NBC Channel 5 News KXAS-TV (Channel 5) O'Neil Digital Solutions Alcon Lab Holdings Ferris Manufacturing Ambit Holdings PFSweb Inc. CK Technologies General Datatech LP

Arlington Fort Worth Fort Worth Fort Worth Fort Worth Dallas Dallas Fort Worth
Red Oak DeSoto Fort Worth Richardson Richardson Dallas Fort Worth Dallas Fort Worth Fort Worth Plano Fort Worth Fort Worth Plano Allen Fort Worth Dallas

Texas Texas Texas Texas Texas Texas Texas Texas

Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas

$331 $230 $96 $95 $95 $85 $85 $75

$70 $60 $40 $35 $35 $30 $25 $20 $16 $16 $15 $11 $6 $5 $5 $5 $4

N/A N/A 500 130 130 100 90 330

265 200 N/A 434 434 N/A 50 250 120 N/A 200 750 100 300 200 50 N/A

Manufacturing Headquarters Manufacturing Manufacturing Manufacturing Manufacturing Manufacturing Office

Manufacturing Distrubition Center Manufacturing/Dist Headquarters Headquarters Manufacturing Headquarters Distrubition Center Office Office Manufacturing/Dist Office Manufacturing Office HQ/Call Center Manufacturing Office

Automobiles Aircraft Locomotives Electric Drive Wheel Systems mining equip. Food distribution Milk Oil & Gas Equipment
Aerospace Retail Gas Field Equipment Computer Storage Devices Information Technology Circuit Board Recycling Regional HQ Restaurant Building supplies TV News Station TV Broadcasting Investment research firm Medical Equipment Wound-care Dressings Electric Delivery Business process outsourcing Truck and Bus Components Mfg Customer Support -Communications

Source: Site Selection Group Corporate Expansion Report

Greatest Job Creation Projects (2011-Present)

Company City State Capex ($M) Jobs Created Industry Function Industry Sector

Alcon Labs PFSweb Inc. GE Transportation Virtual Computing Environment Virtual Computing Environment Touchstone Wireless Frac Tech Ambit Holdings
Frontier Communications NOVO 1 Triumph Aerostructures Home Depot Celanese PFSweb Inc. O'Neil Digital Solutions Kohl's Brightpoint Wireless GE Transportation GE Mining Sleeptronics Niagara Conservation Wisteria NBC Channel 5 News WhiteWave Foods Ferris Manufacturing

Fort Worth Dallas Fort Worth Richardson Richardson Fort Worth Fort Worth Plano
Allen Denison Red Oak Dallas Las Colinas Allen Plano DeSoto Fort Worth Fort Worth Fort Worth Fort Worth Fort Worth Farmers Branch Fort Worth Dallas Fort Worth

Texas Texas Texas Texas Texas Texas Texas Texas

Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas Texas

$11.00 N/A $96.00 $35.00 $35.00 $3.00 $75.00 $5.00

$1.00 $1.00 $70.00 $20.00 N/A $5.00 $15.00 $60.00 $3.00 $95.00 $95.00 $3.00 $3.00 N/A $16.00 $85.00 $6.00

750 688 500 434 434 350 330 300

300 300 265 250 250 200 200 200 200 130 130 125 125 120 120 100 100

Office Call Center Manufacturing Headquarters Headquarters Manufacturing Office Office

Office Call Center Manufacturing Distrubition Center Headquarters Headquarters/Call Center Manufacturing/Dist Distrubition Center Office Manufacturing Manufacturing Manufacturing/Dist Manufacturing Headquarters/Dist Office Manufacturing Manufacturing

Medical Equipment Call center Locomotives Computer Storage Devices IT cell phone Oil & Gas Equipment Electric Delivery
Telecommunication Services Telemarketing Aerospace Building supplies Chemical manufacturing Business process outsourcing Investment research firm Retail Wireless Supply Chain Solutions Electric Drive Wheel Systems mining equip. Mattress Mfg and Distrubutor toilets Home and Garden Retailer TV News Station Food distribution Wound-care Dressings

Source: Site Selection Group Corporate Expansion Report

What are the Roadblocks Ahead

Based on a recent presentation by leading economic forecasting firm, ITR Economics, the future will be challenging.

Another recession to start in Mid 2013 Recession continues through 2014

More severe recession predicted for 2019

Massive recession predicted in +/-2028

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Source: Based on presentation by Alan Beaulieu of ITR Economics on February 7, 2012

How Can Your Community Win

Real Estate
Available Buildings Shovel-Ready Sites

Economic Incentives
Creative Front-End Loaded

Community Visits
Quality Maps Eliminate Paper Right People in the Right Places

Marketing Efforts
Right Industries Private Equity Firms Retention Efforts

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For additional information please contact:

Site Selection Group, LLC 8300 Douglas Ave. Suite 700 Dallas, TX 75225 (214) 271-0580 www.siteselectiongroup.com