Invest in Israel, the Ministry of Economy and Industry's unit in charge of bringing foreign investments to the country, has been working for years to get MNCs to manufacture and invest in Israel. We aim to not only add to the numerous success stories of MNCs in Israel, but to make Israel a meaningful player in the manufacturing field of foreign investments. Thanks to the unit's global work, a role that was previously unknown in Israel has now been exposed: Meet the Site Selector.
As part of background research conducted with the accounting firm KPMG, Invest in Israel learned that site selectors are experts that recommend the best places to open a new site for corporations. These can be large companies, or medium and small businesses. Site selectors' consulting firms are boutique companies that have a great influence on decision makers. Some companies even have an in-house site selector department.
The consultants come from different professional backgrounds, like industrial real estate or infrastructure, however what's common among them all is that they offer one-stop-shop services and give exact and conclusive recommendations regarding where their clients should set up new sites. It became clear to Invest in Israel that site selectors have a key role in the world of global investments, and these decision makers can assist Israel to get to many different companies at once.
What we've also learned is that Israel was not yet a destination on site selectors' maps. This means that Israel was not being considered as a possible destination to establish manufacturing sites for global companies. This was problematic, to say the least, so Invest in Israel began to take immediate action to make the necessary change.
Gilad Be'ery, Head of the Economic Research department at Invest in Israel contacted the Site Selectors' Union, in addition to reaching out to specific firms during 2018. "We made a list of contacts and I started connecting with the most important ones that focus on global investment", Be'ery explains.
Suggestions Based on Quantitative and Qualitative Research
René Buck is the founder and CEO of BCI Global, one of the leading Site Selection consulting firms in the world, with clients such as Ikea, Johnson & Johnson, L'Oréal, MedTronic, Microsoft, Nestle, Oracle, P&G and many more. Buck explains that his company gives widespread consultation services that include all aspects of geographical distribution, like matching global or local companies to the business strategy of the company, considering the effects of relocating or merging companies, deciding what sites to expand, considering the benefits and setbacks of expanding the chosen site, finding a better place to establish a new site, and of course giving a final recommendation regarding the best sites for the company.
One of the tools at the site selector's disposal is a big spreadsheet, where relevant quantitative and qualitative data is used to make decisions – like the quality and availability of skilled laborers in the country, the professional climate, transportation and more. According to Buck, hi-tech companies' most important criteria are local talents, international accessibility, professional climate and a low risk for political instability or natural disasters.
René Buck, CEO, BCI Global
Presenting Israel in the Best Possible Light
At the end of a long process, site selectors usually narrow down the location list to three of the highest-ranking countries from which one is selected. Invest in Israel learned that Israel was not a popular recommendation for site selectors because they simply do not have enough information about Israel.
"The main misassumption regarding Israel is that it is in a state of constant war", says Buck. He claims that even though Israel is a base for young and skilled talents with reasonable real estate and work expenses, potential investors still need to be convinced that Israel offers good opportunities.
Invest in Israel concluded that the first step must be to provide reliable and available information that meets the site selector's needs and will assist Israel to be one of the countries that site selectors recommend to clients. For that purpose, the Select Israel information book was published. It focuses on the main criteria which site selectors seek and the advantages that Israel has to offer.
"Additionally, 'Islands of Excellence' is a project that shares the niche markets that Israel is skilled in, like 3D digital printing, electric cars, advanced plastic manufacturing, UAV's, robots, and cosmetic and medical lasers. For example, Israel is one of the three leading countries in the UAV field. The Site Selectors didn't know that", explains Be'ery.
Invest in Israel is confident that establishing and fostering the connection with site selectors is an important step in making Israel an attractive destination, and Buck agrees: "Economic development units like Invest in Israel can be an important source of information for us. From our experience, Invest in Israel is a professional organization with a deep understanding of what companies are looking for. They share information and have a large network inside of Israel."
