Site selection in rural locations involves a range of considerations that can significantly impact the success and sustainability of the project. While the factors themselves are the same as those considered for urban, suburban, or other type of locale, the nature of rural communities calls for a deeper evaluation, and there can be benefits not found in other settings.
(Photo: Adobe Stock / olmax1975)
With companies considering rural communities increasingly in recent years, here is an overview of factors to explore with the site selection team and economic development counterparts. Fortunately, there are many rural communities that have been identifying advantages they offer for business, along with setting out to fill gaps in assets to offer. Moreover, government at all levels offer programs to fund communities’ efforts.
Infrastructure Availability
Access to roadways, rail systems, air transport, and water: For instance, road access is essential for transporting goods and people. The condition and connectivity of local roads to major highways or railroads can significantly impact logistics and costs.
Utilities: Availability of utilities such as electricity, water, and sewage systems is a major consideration. In many rural areas, these services may be limited or require significant investment to establish.
Telecommunications: In the digital age, access to reliable internet and mobile services is crucial. For rural development, this might involve engaging with initiatives like the Broadband Equity, Access, and Deployment (BEAD) program to ensure connectivity.
Demographic & Economic Factors
Local Population: Understanding the demographics of the local population helps in planning for workforce needs and potential markets for goods and services. Factors such as population density, age distribution, and education levels are important.
Economic Activity: The existing economic activities in the region can influence site selection. Areas with thriving agriculture, tourism, or small industries might offer synergies for new projects. Economically depressed areas might offer incentives for development.
Labor Availability: Availability of a skilled or trainable workforce is crucial. Proximity to educational institutions and training centers can support workforce development.
Regulatory & Legal Factors
Zoning Laws: Local zoning regulations will dictate what types of development are permissible. Understanding these laws early in the process can prevent costly redesigns and delays.
Environmental Regulations: Compliance with environmental regulations is mandatory. This includes understanding the impact of development on local ecosystems and adhering to conservation laws.
Tax and Incentive Programs: Many rural areas offer tax incentives or grants to attract development. Understanding and leveraging these programs can significantly reduce costs and improve project feasibility.
Community Impact
Community Involvement: Engaging with the local community early and often is important. Understanding local concerns, garnering support, and addressing potential opposition can make or break a project.
Cultural Considerations: Respecting local traditions and cultural heritage can foster goodwill and make for a smoother project.
A thorough understanding of geographic, infrastructural, demographic, regulatory, and community factors is essential to make informed decisions that lead to successful and sustainable development.
Transportation infrastructure and strategic geographic location are advantages that many rural locations have to offer. (Photo: Adobe Stock / panyajampatong)
Spotlight On: Chester County, SC
Chester County, South Carolina is a former textile community turned industrial powerhouse. The county is the leading manufacturing county in the Charlotte region with more than 45% of their private-sector workforce in manufacturing, which is the highest the MSA.
Today, the county’s mature sectors include metals, woods, and chemicals and an emerging is the food and beverage sector. Since 2021, $2.55 billion and 1,500 jobs have been announced in Chester County. Three major projects are: E&J Gallo Winery ($423 million and 486 jobs), IKO Industries ($363 million and 180 jobs), and Albemarle Corporation ($1.3 billion and 300 jobs).
Chester County offers the most certified industrial sites in South Carolina along a four-lane divided Highway 9 industrial corridor. Many of the certified sites also offer dual-rail service via the L&C Railroad that connects to CSX and Norfolk Southern.
Meanwhile, Chester County Natural Gas Authority is one of only five natural gas authorities in the state and offers negotiable rates for heavy gas users, such as those that utilize ovens or furnaces.
With 32,226 residents, the county is on the verge of becoming one of the fastest growing counties in the Charlotte region with six approved residential subdivisions with 3,400 homes. And, a geographic location between Charlotte, NC and Columbia, SC offers the opportunity meet talent attraction goals. As a Tier 3 county, there are incentives available to support companies that locate in Chester County.
Spotlight On: Iowa
Looking at one state as an example of rural economic development, Iowa has approximately one-third of its population living in rural areas as of 2020. In 2020, the rural population was 1,175,538, while its urban population was 2,014,831.
The state is proactively building out its infrastructure through the Iowa Certified Sites program. Companies are taking notice from logistics and distribution to food manufacturing and processing.
In April, Daisy Brand LLC, a leading manufacturer and largest brand of sour cream and cottage cheese in the U.S., announced it would expand operations to Boone, Iowa. Demand for the company’s products has created the need for an additional manufacturing facility.
Daisy plans to invest $626.5 million in a 750,000 square foot facility, creating 106 new jobs to start, a number anticipated to grow up to 255 as demand increases. The Iowa Economic Development Authority (IEDA) board approved $7 million in direct financial assistance as well as tax benefits for the company.
Headquartered in Dallas, Texas, Daisy Brand is a fifth-generation family-owned company with operations in Texas, Arizona, and Ohio. The decision to expand into Iowa was driven by several factors, including agricultural resources, business environment, and strategic location.
Rural communities are attracting corporate investment attention, and many have already made moves to deliver what companies need to succeed. Read more…
Spotlight On: Florida
In 2023, the Rural Infrastructure Fund (RIF) awarded more than $43.6 million to 22 rural communities in Florida to facilitate the planning, preparing, and financing of infrastructure projects in rural communities that encourage job creation, capital investment, and strengthening and diversification of rural economies.
In June 2023, Governor Ron DeSantis signed House Bill (HB) 1209 to support rural development and economic opportunity for those 22 communities, such as Putnam County, to be awarded funding through the RIF Program. FloridaCommerce will now be able to award 75% of the infrastructure project cost.
And for fiscally constrained counties or rural areas of opportunity in the state, FloridaCommerce will be able to award 100% of the total project cost. Additionally, this bill will allow more rural communities to apply for funding through the RIF program and it aims to remove barriers that previously prevented local communities from qualifying.
Business climate. Workforce. Innovation. Infrastructure. Quality of life. Minnesota consistently ranks high for the factors important to success.  Rosenbauer is the world’s leading manufacturer of custom fire apparatus. See what role being located in Minnesota plays in their unmatched success.
Camp Hall is a first-of-its-kind, master-planned industrial work space located in Charleston, S.C. As a convergence of people, place and programming, Camp Hall delivers thoughtful infrastructure and logistical features that empower people — and business — to thrive.
