Posted by:
Eric Stavriotis
Strategic Consulting
Economic downturns are tough on everyone, but this one has been doubly difficult for economic development commissions. One challenge is that most companies are not experiencing the kind of dynamic growth that allows expansion into new markets, and the few that are may expect more help from EDCs today than in the past.
The other problem is that many cities and states are more cash-strapped than ever. In looking for ways to reduce costs and increase tax revenue, economic authorities may not want to risk angering residents by giving big tax breaks to attract and retain companies. And some state and local governments have reached the limit of their capacity to raise money by issuing bonds.
Yet, there are industry sectors such as cleantech and healthcare where companies have expansion requirements, and some existing companies with expiring incentives are considering relocation if they can’t get continued public-sector support. EDCs need to pick their targets carefully and be creative in crafting incentive packages that will add, or at least maintain, jobs in their areas without pushing taxes or deficits too high.
Ohio has done a good job of walking that tightrope. Come to our CoreNet Global Forum session on Monday entitled “How to Make State and Local Incentives Work for Business” to get the latest on win-win strategies for businesses and communities.





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Video: Thoughts from the Summit – David Brown
Thursday, March 24th, 2011David Brown, Head of Lease Administration, Asia Pacific
Posted in Asia Pacific, CoreNet Global Summit, Hong Kong 2011, Economy, General comments, Lease Accounting | No Comments »