W
hile debates rage over the cause and effect of global warming, polar ice and sea-level rise, I believe that there is little dispute over one simple fact: The global business climate continues to heat up.
With the increased globalization of our businesses and the shrinking of traditional geographic impediments, the business competitiveness of various geographies is also on the rise.
It is no longer that regions within a country, state or province need to set themselves apart from their immediate neighbors. The reality is that the true competition may lie up to 12,000 miles away in established business centers or little known, remote regions. The competitive landscape for attracting new business and retaining the existing economic base has changed dramatically over the past decade. With continued advances in transportation, connectivity, skilled work forces, education and quality of life, global business leaders and site selectors have many options. The big question is: What sets these options apart?
Depending upon the nature of the business and/or product produced, site selectors can be faced with a matrix of factors needing to be weighed into the ultimate decision. They generally include access to markets, labor availability, infrastructure, pro-growth regulatory environment and yes, of course, cost. With tremendous growth realized by many emerging regions, much of the initial attractiveness already may have been (or is becoming) compromised as competition for skilled and/or educated workers increases within that region. The sustainability of the business expansion enjoyed by these regions in the past is, in my mind, a serious question needing to be addressed.
Fierce competition for this existing business continues unchecked and will be viewed as new business by other regions. If one accepts the reality that traditional impediments (real or perceived) to doing business globally will continue to be hurdled,
then the potential for business globe-trotting will only fuel the competitive environment.
Competition for new business is one thing. But implementing an effective strategy for retaining the business you have already won in years past is even more critical to sustaining a viable business environment, economy and, ultimately, high quality of life.
Peter Garra
IAMC Chair
