Transcript Procter and Gamble- a case study of the recruitment process

PROCTER AND GAMBLE- A CASE STUDY
OF THE RECRUITMENT PROCESS
UTAH ALLIANCE FOR ECONOMIC DEVELOPMENT
PROCTER AND GAMBLE
PROCTER AND GAMBLE
More than 250 branded products
50 Leadership Brands (24 generating one billion dollars)
4.4 billion consumers around the world
Operations in over 80 countries, our brands are in 180
125,000+ employees representing over 140 nationalities
Ranked #5 among the “Global Most Admired
Companies”
• Over $80 billion in Annual Sales
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PROCTER AND GAMBLE
First P&G Greenfield site in the U.S. in over 35 years
Box Elder site part of P&G Family Care business
6 Family Care manufacturing plants in the U.S.
New capacity every 18-24 months historically
Economic and regional opportunity for
manufacturing capacity and distribution in the
Pacific Northwest
• Producing Bounty paper towels and Charmin toilet
tissue
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GOVERNOR’S OFFICE OF ECONOMIC
DEVELOPMENT
• Full and active support of Governor Jon Huntsman,
Jr.
• Close partnership between GOED, EDCU, Box Elder
County, and Brigham City EDP’s
• Help with State Boards, Legislature
• $9 million shortfall to cover infrastructure costs paid through
legislative authorization of loan from Water Quality Board
GOVERNOR’S OFFICE OF ECONOMIC
DEVELOPMENT
• EDTIF (Economic Development Tax Increment Fund)
program
• $85 million incentive over 20 years
• Based on company projections:
• 900+ full time jobs in 10 years and over 1,000 jobs in 20 years
• Projected wages greater than 200% of Box Elder County median
wage
• New State revenue - $98,522,000 over 10 years/$280,739,000
over 20 years
• New State wages – Over $400,000,000 over 10 years/over
$1,000,000,000 over 20 years
• Capital investment - $540,000,000
• ROI Multiplier – 3.3
GOVERNOR’S OFFICE OF ECONOMIC
DEVELOPMENT
• GOED Board approval:
• 50% of New State Revenues in years 1 through 5
• 30% of New State Revenues in years 6 through 18
• 15% of New State Revenues in years 19 and 20
• Terms and Conditions:
• EDTIF maximum incentive not to exceed 30% of new state
revenues over the life of the project
• The company must commit to keep operations in Utah for a
minimum of 20 years
• The average salary of new employees must be equal to or
greater than 200% of the Box Elder County Median Wage
• Subject to Box Elder County local incentive
ECONOMIC DEVELOPMENT
CORPORATION OF UTAH
• Founded in 1987 as a private non-profit corporation
• Serves as a catalyst to facilitate job growth and
capital investment in Utah.
• Partners with GOED, city and county governments
to expedite economic development statewide
• Primary focus is on corporate recruitment and
retention
• Serve as a single point of contact for all site
selection activities
• 270 supporting public and private partners
ECONOMIC DEVELOPMENT
CORPORATION OF UTAH
• Initial response to Project Gold Rush – September 29, 2006
• Sites submitted in Emery, Sevier, and Box Elder Counties
• First site visit – December 12, 2006
• Sevier and Emery County sites eliminated
• Organized meetings with GOED(Incentives), Utah State Department of
Environmental Quality, Rocky Mt. Power, & Questar Gas.
• Susan Thackeray arranges meetings with local government officials, water
district officials, & property owners.
• Second site visit – December 20, 2006
• Delta site added for tour
• Third site visit – March 20, 2007
• Delta site eliminated
• Procter & Gamble discloses identity
• October 9, 2007– GOED offers record $85 million incentive to P&G
• October 17, 2007 - Procter and Gamble announces selection
of Box Elder County
BOX ELDER COUNTY
Four things I learned on the way to the
Box Elder County
Procter and Gamble plant.
• Never recruit a company you wouldn’t want your kids to work for.
• Teacher: Susan Thackeray
• When it’s right, put your heart and soul into it.
• Teacher: Clark Davis
• Utah is more than a pretty great state.
• Teacher: some things are self evident
• Economic development is a team sport.
• Teacher: Procter and Gamble, GOED, EDCUtah, Box Elder
County, Brigham City, Brad Baird…….
BOX ELDER COUNTY
• Local participation (required by EDTIF approval)
• Box Elder County Redevelopment Agency
(Required partnership with, and buy-in by Box Elder
School District, Box Elder County Commission, Bear
River Water Conservancy District, Box Elder
Mosquito Abatement District)
• Up to $24 million for public infrastructure (water and sewer
line extensions)
• Up to $31 million of economic incentive to P&G
• Years 1-5 – 90% of increment
• Years 6-20 – 70% of tax increment
• Local economic incentive capped at $31 million
BOX ELDER COUNTY
• Economic Impact Benefits
• Net direct benefit to County, School District, other SSD’s $7.6 million (20 years)
• Net indirect benefit to County, School District, other SSD’s $32 million (20 years)
• Consultants/Advisors
• Assisted in establishing Economic Development Project
Area to enable tax increment financing
• Financial projections
• Legal issues associated with recruiting effort
BRIGHAM CITY
• Initial impression from RFI was negative due to scale
• 1,000-1200 acres
• Within 200 miles of a major metro
• 600-1,200 employees over a ten-year period; 2,500 over a 30-year
period
• Rail service, including on-site accommodations for 300 rail cars
and a 50 car ‘runaround track’
• Close proximity to a large river, lake, or reservoir as water
availability for production will be critical
• Excellent interstate transportation access
• 100-120 MW electrical demand
• “The Client understands that the facility will need to employ the
best available control technologies (BACT) and maximum
achievable control technologies (MACT) for selected pollutants”
BRIGHAM CITY
• Initial impression from RFI was negative due to scale
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Freshwater use – 8 MM GPD
Consumptive Water Use – 2 MM GPD
Wastewater Discharge Flow – 6 MM GPD
Solids (TSS) 1500 Pounds/day
BOD 1000 Pounds/day
Air Emissions
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NOx 400 TPY
SOx 60 TPY
VOC 315 TPY
PM 170 TPY
CO 400 TPY
HAPs 50 TPY
• Solid Waste Disposal – 15,000 TPY
• Hazwaste Disposal – 8 TPY
BRIGHAM CITY
• Do we REALLY want this???
• Reassurance from trusted partners (GOED, EDCU)
was helpful to re-engage, even while they
maintained confidentiality
• Scope of project was cut approximately in half
• Visit with P&G (“Gold Rush”) representatives was
very positive, helpful, even though we didn’t know
who they were
• City’s initial role was in support of Box Elder County
• Transitioned to infrastructure provision later in the
process
BRIGHAM CITY
• Availability of infrastructure was a key consideration
• Water – build out and source analysis gave Brigham City the
confidence that “Gold Rush” could be served and still meet
needs in future growth areas within the City’s annexation
boundary
• Sewer – planned as a regional facility
SUGGESTIONS FOR BUSINESS
RECRUITMENT
• Avoid knee-jerk reactions (“This must be a big
polluter!”)
• Networks are critically important
• Utah excels at cooperation – COOPERATE!
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GOED
EDCU
Local EDP’s
Private sector
• Cities and Counties need to be able to cooperate!
• Trust is a key factor
• One-on-one interaction (face-to-face, not just
electronic) critical to building trust and relationships
SUGGESTIONS FOR BUSINESS
RECRUITMENT
• A can-do attitude can overcome weaknesses or
lack of polish
• Neither side should anticipate 100% smooth sailing,
but both sides should commit to working through
differences
• Take a field trip to a similar facility, particularly if it is
operated by the same company (visit to Cape
Girardeau plant helped answer lingering questions)
• Be prepared to respond to rumors – the “Toyota”
thing
• Understand the proper use of consultants and
experts, and don’t be afraid to use them
SUGGESTIONS FOR BUSINESS
RECRUITMENT
• Invest in infrastructure – past decisions by elected
officials placed Brigham City in a position to meet
Procter and Gamble’s water and sewer needs
• Understand, honor, and respect confidentiality
requests
• “Hi, I’m Paul Larsen, Brigham City Economic Development Director. Here’s
my card, email address, phone number, etc. My wife’s name is Shirlene. I
have four kids. I went to USU (go Aggies).”
• “Hi, I’m Joe – JUST Joe”
• Believe in yourself, or no one else will!
• We think we have the best place in the world to do business
• County Commissioners need to be able to do
cartwheels
QUESTIONS?