The Economic Perspective: “Factors for Attracting Businesses”

Mary: I’m Mary Walden with economist MW welcoming you to the economic
perspective. Today’s program looks at factors for attracting businesses. Mike, motivating
businesses to locate in a city or region remains a big challenge for economic developers.
Traditionally, labor supply, proximity to buyers, and sometimes financial incentives were
key factors used to lure a business. But has this strategy changed today?
Mike: Summary Answer
a. Economic developers say it has
b. Labor, proximity to suppliers and buyers, and incentives are still important
c. But moving up the list is amenities
d. More households today are focused on life outside of work
e. Businesses know this, so they now consider factors like climate, outdoor
activities, and proximity to schools and health care
f. One reason why – in NC – regions like the Asheville and Wilmington areas
– known for being based on tourism – are seeing their economy diversify
g. And with Covid, smaller, less dense areas may get increased looks
h. I’m MW
Mary: And I’m Mary Walden for the Economic Perspective, an NC State Extension
program from the Department of Agricultural and Resource Economics.