Unlocking the Value of Non-Monetary Economic Incentives for Industrial Projects

While monetary incentives can be impactful in the site selection process, especially in the early stages of project development, Site Selection Group consistently urges our clients to consider the long-term partnership value that a community can provide. Non-monetary incentives provide a valuable way for communities with limited funding resources to add value to industrial companies seeking to establish a new or relocated facility. In some cases, they may even provide more value than direct financial contributions.

Moreover, non-monetary incentives give communities an opportunity to showcase their creativity, agility, and adeptness. These types of offerings can be a powerful demonstration of a community’s readiness to support and sustain long-term economic growth. 

Non-monetary incentives

Below are examples of non-monetary incentives that Site Selection Group has seen in competitive communities across the country: 

•  Employee Transportation Assistance

•  Access to public buildings for training

Allowing temporary use of unused municipal land, industrial park parcels, vacant buildings, or storage yards to aid in staging, training, or equipment storage. This plug-and-play approach reduces setup time and costs during critical project phases. Furthermore, showcasing these types of facilities during a community visit, particularly during the site selection process, can help a new plant or operations manager tasked with setting up a few facilities envision where they will establish their operations while the new facility is under construction.  

•  Expedited/streamlined permitting

Providing a path to expedited timelines can be more valuable than money, especially as project timelines continue to compress. Further, in some cases, partnerships with public entities allow companies to bypass or circumvent specific processes that would otherwise be outside of private control. It’s critical for communities not just to “say” that they offer this type of benefit, but rather to “show” it by providing examples of other manufacturing companies that have benefited from expedited permits.  

•  Infrastructure Coordination

While infrastructure investments can involve funding, the community’s role in facilitating infrastructure access, such as aligning utility upgrades, improving road access, or pre-permitting sites, can significantly de-risk a project. The value lies in reducing friction and uncertainty during implementation.

•  Community Liaison

A dedicated community liaison can serve as a single point of contact to guide companies through local processes, making it easier to navigate everything from permitting and utilities to workforce and childcare connections. This person acts as a bridge between the company and local institutions, government agencies, educational partners, service providers, and civic groups. The presence of an effective community liaison is one of the strongest indicators of a community’s capacity to be a true partner, not just a passive host.

Shifting the narrative

In the same way that the “employer of choice” isn't always the one paying the highest wages, the “community of choice” isn't always the one offering the biggest check.

Site Selection Group urges companies to look for communities that make it easier to succeed, not just offer the lowest cost environment in which to operate. That means streamlined permitting, a ready and willing workforce, reliable infrastructure, and partners who solve problems. Non-monetary incentives often reflect something more important than money: capability, commitment, and culture.