Stratecation Specialists
Mark Allen, CEO
Sunair Electronics
Sunair Electronics designs, manufactures and sells state of the art High Frequency (HF) communications systems and peripherals utilized for long-range voice and data communications, mainly for government and military clients. CEO Mark Allen knew the cost of doing business in his previous location was chipping away at his bottom line. The rising cost of labor, property taxes and insurance, among other fixed costs, caused Allen and his Board to deploy a stratecation initiative.
He sent Request for Proposals to 28 economic development organizations to begin the process. His team deployed the Science of Stratecation and cued in on four factors:
- Lower cost of doing business (labor, property costs, taxes and insurance)
- Availability of a technical workforce
- Better control of fixed costs going forward
Once the scientific data was compiled, Allen and his stratecation team moved to phase two, the Art of Stratecation, and identified three key elements:
- Personal contact and level of commitment from RFP respondents
- Shipping costs (70% of Sunair customers are international accounts)
- A community team approach to recruit the company
- Showcasing a better quality of life for employees moving with the company.
The stratecation outcome was the successful relocation of Sunair to Ocala, Florida. Allen, his board and the company, were pleased with the process and are happy with the results.
“Since 70% of our business is done internationally, the free trade zone at the Ocala airport weighed heavily in our decision to locate here. We were able to negotiate a very favorable long-term lease with the City of Ocala for a 30,000 square-foot, city-owned building with the help of the EDC (Ocala/Marion County Economic Development Corporation). We really had the support with Pete Tesch, Ron Thibodeaux and the staff with the EDC through the entire process. They were there every step of the way.
“The EDC brought in their partners with One Stop (CLM Workforce Connection) and they have done a great job. They advertised and screened from a pool of applicants. We have had more qualified candidates than our HR team can sort through and an extremely high success rate with our hires. Our early fears concerning recruiting a quality, post-move replacement workforce quickly evaporated. Some of our employees who moved with us were able to sell their homes and pay cash for much nicer homes in this beautiful community. A key goal was accomplished; we improved the quality of life for our employees.”
Robert Stopanio, CEO
Scorpion Performance Company
Scorpion Performance Company designs, manufactures and sells after market small precision parts for the automotive, medical, aviation and marine industries. CEO Robert Stopanio was finding his company was limiting its market potential because its physical plant was not large enough to keep up with demand. Property was available next door to their site, however, the cost and permitting process would have encumbered the growth process for three to five years. A stratecation initiative was necessary to take the company to the next level.
Stopanio’s team began with the Science of Stratecation and cued in on three factors:
- Lower cost of doing business (property costs, taxes and insurance)
- Regional access to southeast customer base
- Availability of a technical workforce.
The Art of Stratecation for the Scorpion team included:
- Personal contact from competing communities
- A community team approach to recruit the company
- Showcasing a better quality of life for employees moving with the company.
Ocala, Florida was also the choice for Scorpion’s Stratecation Team. The company is currently moving operations to the Marion County location in stages and plans to be fully operational by the end of 2008.
“Everyone is so excited about this move,” said Stopanio; “we just wish we were all there now.
“We purchased nearly 90,000 square feet of industrial space for our facility for less than $3 million and kept our company debt free. That is a fraction of what it would have cost us at our previous location. We like the geographic location with access to Interstates 75 and 95 and the reception has been outstanding. The team at the Ocala EDC has been a great liaison on our behalf, helping us work through the permitting process and is making the transition seamless. We are able to work on the renovations in our new facility from our current location and keep the operation running smoothly in the process.
“Our employees coming can’t wait to make the move. Even with the current real estate market, they should be able to greatly discount their homes to sell, and still pay cash for a much nicer home in Marion County.”
