Employers generally use common indicators when deciding where to create new jobs:
- Cost indicators like taxes, fees, and energy prices allow site selectors to determine the cost associated with locating in a particular region.
- Value indicators such as talent and infrastructure help site selectors know the value a region can offer for the business costs to be paid.
Locations that offer more value for equal or lower costs are more attractive to businesses.
States that are not competitive on costs are not seriously considered by site selectors. When cost indicators are favorable, however, it is value indicators that are capable of helping keep a location competitive. When comparing two or more regions with similar cost structures, the region with better infrastructure, talent and innovation capabilities will often win.
Ultimately, business site selection decisions have a major impact on job creation, income levels, and economic productivity. That is why Michigan must continuously evaluate cost/value input indicators to ensure the best possible balance for business attraction, retention and expansion.