The Secret Weapon in Site Selection - Comparing Two Cities

Economic impact analysis plays a crucial supporting role in the site selection process by providing insight into how a proposed project will affect a region’s economy. Rather than serving as the sole decision‑maker, it helps firms compare the economic benefits of final candidate locations, strengthen and justify incentive negotiations, and evaluate long‑term implications for workforce, infrastructure, and regional resilience. It also equips leaders with the data needed to communicate project value clearly to internal stakeholders and external partners, ensuring decisions are both economically grounded and strategically aligned.

Economic impact findings help create:

• A value-for-money comparison
• A negotiation narrative
• A public‑facing economic story

Let’s dive into what this looks like using IMPLAN if we want to compare two wildly different possible locations for a new firm: Charlotte (Mecklenburg County, NC) and Cleveland (Cuyahoga County, OH). It would be pretty easy to say that Charlotte is the obvious choice for banking and Cleveland would win hands-down for manufacturing. Let’s look at an Industry where both cities have a significant presence: Management of companies and enterprises.

COMPARING REGIONS

Region Details

When evaluating potential locations for a new facility or expansion, comparing two regions side by side is essential. Data in IMPLAN’s Region Details offers a structured way to understand how each area’s economy is built: industry composition, supplier depth, and occupational availability. While economic impact modeling is often used to forecast the effects of a project, Region Details helps answer a different but equally important question: How well does each region support the project in the first place?

The Overview page in Region Details gives us some great basic information.

Now I can begin my comparison between the two cities. So far, they are pretty close.

Charlotte and Cleveland are relatively comparable in Employment and population. However, Charlotte does have a higher overall GDP.

Understanding Industry Composition

Industry comparison begins with examining the concentration, scale, and relevance of industries in each region. By reviewing industry-level data within Region Details, practitioners can quickly identify which industries dominate each local economy and how specialized they are. If one location shows strong activity in industries closely aligned with the proposed project like advanced manufacturing, logistics, or chemical production, it may signal a stronger natural fit. Conversely, a region with little presence in relevant sectors may pose higher development or workforce challenges. Assessing industry composition this way reveals how seamlessly a new project could integrate into each regional economy.

Still on the main page in Region Details, scroll to the line for Management of companies and enterprises for details on the Industry.

Again, these two cities are fairly even. However Charlotte has a higher Employment and Output with a lower Employee Compensation.

Evaluating Supplier and Input Availability

A region’s supply chain landscape can be just as important as its headline industries. Region Details makes it possible to explore the presence of industries that typically serve as upstream or complementary suppliers to the project’s sector. By comparing the supplier-related industries across the two regions, decision-makers can gauge how much of the project’s input needs could be met locally. Regions with a deeper array of relevant supplier industries tend to offer greater operational efficiency, reduced transportation costs, and improved resilience. This analysis also highlights potential gaps like places where a project may need to import inputs or invest in supplier development.

Heading to Social Accounts, Balance Sheets, Industry Balance Sheets, Commodity Demand, we can gather some information about the supply chain. Select Management of companies and enterprises as the Industry and refresh.

Here let’s look at the Regional Purchase Coefficient (RPC). This shows the proportion of the local demand for Commodities that is currently met by local production.

Charlotte holds a  slight advantage over Cleveland in terms of the proportion of the local demand that is currently met by local production.

Analyzing Occupational Structure and Workforce Fit

Workforce availability is critically important. With access to occupational detail within Region Details, you can evaluate how each region’s labor force aligns with the project’s staffing requirements. Comparing the size of specific occupations, the relative specialization of the workforce, and the breadth of skill sets helps determine whether a region can supply the talent needed to operate efficiently. One region may offer deeper pools of high‑skill technical labor, while another may excel in production occupations. Understanding these distinctions allows organizations to anticipate recruitment challenges, wage pressures, and training needs before making a final decision.

Click on the Occupation Data tab and select Industry Occupation Detail. For the Industry, choose Management of companies and enterprises and refresh the page.

Clicking on the column for Wage and Salary Employment shows the number of jobs in descending order.

Charlotte gains an advantage in terms of the number of employees in these jobs currently working in the region.

ANALYZE IMPACTS

Next, we will analyze the same firm in both regions by creating two projects. The first will have Mecklenburg County and a combined region of the rest of North Carolina (excluding Mecklenburg County). The only information available about the new firm is that it will have 5,000 employees. Create an Industry Employment Event and drag it into the Mecklenburg County Group. Select the MRIO button in the upper right to link the regions together.

Now, create a second project with the exact same Event, but the two regions will be Cuyahoga County and the rest of Ohio (excluding Cuyahoga County).

Now that both of these have run, head over to the Projects page. Select both projects, and click on the COMPARE button.

Now we see a side by side comparison of the same event in both of these geographies.

Now things are getting interesting. The total employment for locating this firm in Cleveland is higher, with a lower Labor Income and lower taxes.

SHARE THE RESULTS

Now tie all of these pieces together to present the findings. Overall, Charlotte and Cleveland show similar population and employment levels, but Charlotte stands out in several economic dimensions. Charlotte’s overall GDP is higher, and it also shows stronger Employment and Output performance, despite having lower Employee Compensation. The region also holds a slight edge in the share of local demand that is met by local production, and it has more workers currently employed in the occupations relevant to the project. However, when modeling the potential location of the firm, Cleveland produces higher total employment effects alongside lower Labor Income and lower tax impacts, giving it a competitive advantage depending on the desired balance between job creation, cost structure, and fiscal outcomes.

DISSERTATION DISCLAIMER

Data backed by decades of research like the kind you’d find in IMPLAN is absolutely critical for making sound location decisions. Other factors are also critically important including, tax incentives, real estate availability, political landscape, and other relevant considerations for the specific industry.

Of course, none of this matters if the c‑suite decides to throw logic out the window. Maybe the COO has vowed never to shovel snow again and simply refuses to live anywhere that requires more than a light cardigan. Maybe the CTO has announced, with great conviction and zero elaboration, that he “just doesn’t want to be in Cleveland.” Or perhaps the CEO has family in Charlotte and plans to drag the entire company along for Sunday afternoons boating on Lake Norman.

If you’d like to unpack that delightful chaos further, might I recommend a riveting dissertation entitled The Role of Place Image in Business Location Decisions? Rumor has it it’s a real page‑turner….possibly even the most excitement you can legally have in an academic library.

RELATED ARTICLES

Business Attraction Decisions with Economic, Environmental, & Occupation Data

Occupation Data Use Cases

Unlock the Black Box: Discover Region Details

RELATED DISSERTATIONS

Clouse, C. M. (2017). The Role of Place Image in Business Location Decisions [Doctoral dissertation, Cleveland State University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=csu15051306584967 
 

Written March 17, 2026