R & E tool Studies have shown that 80% of new jobs are created by the existing industry base in a community. Any community economic development organization not paying attention to their existing industry base is missing a huge opportunity. Many people believe a company already located in a community will automatically expand in the community, but this is not true. Too many times, community leaders are surprised by a company leaving town. In many cases, this is a missed opportunity for the community to create new jobs. Other studies have shown that it is much less expensive to keep a customer (an existing industry) than it is to find a new customer. This is especially true for economic developers. Existing industries will grow the number of jobs and payroll gradually; However, when a major expansion is considered by the corporate office, various plant sites are usually considered. Plant managers are busy trying to run the day-to-day operations and are often not equipped to supply timely and accurate information to the decision makers at the corporate office to keep their community on the radar screen. A good Business Retention and Expansion Program will give the economic developer the opportunity to know a project is on the horizon, or at least the opportunity to supply the plant manager with information and a contact for additional information. |