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SPECIAL ADVERTISING SECTION FROM SITE SELECTION • JANUARY 2003

Site Selection Case Study: SATO America

Charlotte, N.C. skyline Charlotte has been attracting high-profile headquarters like clockwork for years (such as Fortune 1000 companies Carlisle Cos., SPX and Goodrich since 1999). But few cases have illustrated the range of services that Charlotte offers to relocating companies better than the effort to bring in SATO America Inc., a Silicon Valley distributor of bar-code printers and accessories.
        The story begins on September 10, 2001, with an e-mail from SATO America to Justin Hunt, vice president/headquarters & international development for The Charlotte Chamber. SATO America, a subsidiary of a US$500-million Tokyo manufacturer, planned to relocate from Sunnyvale, Calif., and already had placed Charlotte among five finalists, along with Raleigh, N.C.; Cincinnati, Ohio; Denver, Colo.; and Reno, Nev.
        A month later, the Charlotte Chamber visited SATO America in California. Within weeks, Hunt was giving SATO America President Mike Fowler and Vice President of Operations Richard Armstrong a tour of Charlotte housing and 15 potential office-warehouse locations.
        Hunt said that Charlotte quickly made an impression on Fowler and Armstrong for several reasons:
        • Labor costs, availability and skills. Charlotte's diversified manufacturing and distribution businesses developed a labor force with a broad range of relevant skills, particularly in the printing sector, supported by Central Piedmont Community College's Institute of Flexography.
        • Low cost of living. "They were immediately struck by how much more housing they could get for their money," Hunt said.
        • The most extensive air connections in the region, through US Airways' Charlotte hub.
        • Low general operating costs, including lease rates.
        • The wide range of cultural and education options.
        • The extensive international community in Charlotte, which includes more than 600 foreign-owned companies.
In the past 10 years, Charlotte and the surrounding county of Mecklenburg have attracted $7.4 billion in new investment from 8,928 companies. These investments have created 77,324 jobs and absorbed 91.1 million sq. ft. of space. Among the corporate and business-unit headquarters contributing to these totals are the following announcements of the past few years:

Selected Headquarters Announcements, Charlotte Area
(Bold type indicates Fortune 1000 corporate HQ)
YearCompanyJobs Announced
2002WEDECO AG200
 SATO America50
 BASF Superabsorbents30
 Ultrabend Systems25
2001Carlisle Cos.20
 SPX75
 Billy Graham Evangelistic Association400
 Speedvision Channel ­ Fox Sports50
2000GE Sealants & Adhesives40
 Perfect Fit Industries75
 R.F. Nitro Communications50
1999Goodrich70
 Pinkerton Consulting & Investigations100
 SpectraServe (International Paper)25
Source: Charlotte CC

        "We were trying to balance out both family life and business situations," Armstrong said. "Most of our management team has school-age children. Some cities competed on cost, but couldn't match Charlotte's quality of life."
        By the end of December, SATO had narrowed its choices and returned in early January to visit the two finalists: Charlotte and Raleigh.
        At this point, the Charlotte Chamber pulled together a variety of local groups in a well-coordinated effort to provide SATO with a complete relocation package. Sherwood Southerland, director of the N.C. Employment Security Commission's Charlotte-area office, demonstrated how the office would help SATO recruit the work force it needed. "They were pleasantly surprised to learn how proactive the ESC was in North Carolina – particularly in Charlotte," Hunt said.
        A representative of Charlotte-Mecklenburg Schools explained the school system's student assignment options, how to use the system's Web site to answer many questions, and how she would serve as a point person to answer questions for all relocating managers. A member of the SATO team remarked, "They actually understand customer service."
        A local real estate agency discussed the full range of relocation services it would offer the management team.
        About a week later, on January 14, Fowler sent Hunt an e-mail: SATO had chosen Charlotte.
        It was time to deliver on all of the recruiting team's promises. The relocating managers returned to Charlotte for a visit and were given personalized tours of Charlotte-area communities. The ESC and Employers Association helped SATO managers write job descriptions and learn important North Carolina labor regulations. Hunt identified more than a dozen potential sites for SATO.
        The team covered details down to sprinkler system requirements (SATO wanted to stack inventory fairly high) and US Airways' frequent flier program. SATO eventually selected a site in May, then completed the cross-country move in a remarkable eight weeks from signing the lease to reopening in Charlotte.
        "I was quite happy with the whole recruitment process, from the Chamber to the real estate company that worked with us," Armstrong said. "Everything was quite impressive."
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