{photo1-left}When it comes to identifying, researching and selecting a site for your company’s manufacturing operations, SGR attorney Florian Stamm is the one to turn to for advice.

When SGR partner Florian Stamm is not in Germany tending to clients from his native country, he is most likely crisscrossing the United States in search of that elusive place where all factors combine to make the ideal location for a company’s new manufacturing site. Florian’s “sense of place” has become a valued commodity. During the past several years, he has helped dozens of American and European companies find a new home for their manufacturing operations. At any given time, he is working with as many as 15 clients. Florian took a brief pause from his travels to talk to Trust the Leaders about his practice.

Trust the Leaders: When clients ask for your assistance in selecting a manufacturing site, how do you proceed?

Florian Stamm: I initially set out to learn as much as possible about the client’s business. In most instances, the client’s product and manufacturing process will narrow the availability of sites. A manufacturer of high-voltage power transmission poles, for example, will require a large lay-down area and will not want to pay for a large site in an urban area such as Houston, preferring a rural site instead.

With such bulky and heavy products, supply and distribution logistics also play a major role. A semiconductor manufacturer is unlikely to have the same logistical constraints and space requirements, and will more likely be focused on the qualifications and cost of labor. For that company, Huntsville, Ala. or Alpharetta, Ga. may be an ideal location.

TTL: After you have identified the relevant site criteria, you hit the road?

FS: Not so fast! It is has been my experience that, for any given set of site criteria, there are likely to be several dozen sites that fit the bill. Based on the client’s site criteria, I will approach state and local economic development organizations and ask them to identify potential existing buildings and greenfield sites.

A team composed of SGR attorneys, CPAs and consultants then performs a first due diligence on the proposed sites to make sure they fit the requested criteria. Only when we have completed our initial due diligence do we propose sites to be visited.

TTL: When you have a selection of available sites to choose from, how do you make a recommendation to the client?

FS: The entire process is very transparent — the client is always in the driver’s seat. I act more as a catalyst and facilitator, channeling the client’s decision-making process. Our clients know their businesses best and will generally have some idea of where they want to be.

My role is to assist the client in developing a list of criteria and evaluating potential sites based on such criteria. In that process I bring to bear our significant local knowledge of the various proposed regions and communities.

TTL: Is making the final decision the hardest part of the entire process?

FS: Absolutely! In the end, we usually mull over a half-dozen options that fit the site criteria in significant part. In every project, the tie is broken in a different way. Sometimes, it is the proximity to major international airports, recreational areas or universities. Other times, the availability of investment incentives becomes the decisive factor. Many states and communities are willing to provide prospective employers with tax credits, infrastructure grants and bond financing. Contrary to public opinion, such financing tools are not just available to mega projects like the Volkswagen facility in Chattanooga, Tenn.

TTL: When you have a selection of available sites to choose from, how do you make a recommendation to the client?

FS: We recently assisted Wilhelm Schulz GmbH of Germany in locating in Tunica — a small Mississippi town about 30 miles south of Memphis known for its riverboat casinos. Schulz manufactures premium stainless steel pipes for the oil, gas and nuclear industries.

The company conducted a worldwide search for its new plant and, after considering more than 100 locations in the United States alone, decided to invest nearly $100 million in northern Mississippi. The plant will employ 500 people. The leading site criteria were non-union labor, energy costs and accessibility to Memphis, a major transportation hub.