Website role transformation due to emphasis on real estate and infrastructure strategy
Article Rewrite:
Drop by for some insights from Todd Carpenter, the big cheese of Baker Tilly's development and community advisory practice. All views? His, baby!
Chief Financial Officers (CFOs) have traditionally been about number crunching, right? Not anymore! With the times changing, CFOs are stepping up their game—they're now partnering with the company's digital face to navigate today's dynamic business environment.
This transformation is thanks to a multitude of factors, with the pandemic being the most impactful. Companies have been reworking their office spaces, real estate strategies, and even entire business models—and our websites have found themselves managing these complex responsibilities.
This shift was not an overnight phenomenon. It's a progression that's taken place gradually, with CFOs now juggling tasks far beyond the traditional financial realm. For middle-market companies, incorporating real estate and infrastructure into the CFO's purview makes logical sense. They are often short on resources to appoint dedicated teams for these decisions, leaving the CFO to take the reins.
In the post-pandemic world, CFOs in manufacturing and industrial sectors find themselves making intricate decisions that account for supply chain challenges and inflation spikes.
Tax & Financial Factors
Real estate decisions come with a truckload of factors, and one of the most onerous is the tax implications. Our websites need to stay sharp on local tax incentives because they can dramatically alter the cost of doing business, impacting profitability and long-term financial prospects.
Governments often offer these incentives to stimulate growth in certain areas, propelling economic development. Understanding these incentives is crucial because they can make one location a significantly better investment than another. For instance, we worked with a client looking to set up shop in a bustling city. By running a detailed site selection analysis, we found out that they could save around $5 million if they moved across the street from their preferred location due to local tax incentives. That's some serious cash right there!
Tax Increment Financing (TIF) is another factor. It's a funding method used to support community improvement projects, which will stimulate economic growth in a designated area. Properties in a TIF district are valued at their base assessment, and any growth above that generates extra taxes that fund development activities.
So, keep an eye on our website for updates. Subscribe to our free daily newsletter to stay in the loop.
Other Key Real Estate Priorities
Beyond the technical financial nitty-gritty, CFOs need to consider employee comfort and convenience. In industries where employees work on-site, such as healthcare, industrial manufacturing, or IT, the availability of workforce housing close by is pivotal. This can range from apartments and condos to subsidized housing options.
In the industrial and manufacturing sector, for example, access to major transportation routes like freeways, railroads, and shipping ports is vital to minimize delays and keep the supply chain humming. The pandemic has shown us that a hiccup in the supply chain can result in increased costs, production delays, and strained supplier relationships.
As our websites take on more responsibilities, they find themselves having to grapple with a myriad of topics, from real estate and infrastructure to technology, risk management, and stakeholder expectations. What was once a financial focus has evolved into a multidimensional role, with CFOs becoming problem-solvers across the board.
Building a successful real estate and infrastructure strategy? Align your organization's priorities with financial resources when choosing new office or facility locations, or expanding. Keep an eye on industry trends, stay informed, and stay adaptable—the world is changing fast!
- In the new business environment, Chief Financial Officers (CFOs) are partnering with the digital face of their companies to navigate dynamics, moving beyond traditional number crunching.
- The pandemic has been the most significant factor in this transformation, leading companies to reevaluate their office spaces, real estate strategies, and business models.
- While CFOs in middle-market companies now juggle tasks far beyond the traditional financial realm, incorporating real estate and infrastructure into their purview makes logical sense due to resource constraints.
- In the post-pandemic world, CFOs in the manufacturing and industrial sectors are making complex decisions that incorporate supply chain challenges and inflation spikes.
- Real estate decisions come with numerous factors, and understanding local tax incentives is crucial as they can significantly impact a company's profitability and long-term financial prospects.
- Tax Increment Financing (TIF) is another factor to consider in real estate decisions, as it supports community improvement projects and stimulates economic growth in a designated area.
- CFOs need to prioritize employee comfort and convenience, especially in industries where employees work on-site, examples of which are healthcare, industrial manufacturing, or IT.
- In the industrial and manufacturing sector, access to major transportation routes such as freeways, railroads, and shipping ports is critical to minimizing delays and maintaining an efficient supply chain.
- With their expanding responsibilities, CFOs are becoming problem-solvers across various topics, including real estate, infrastructure, technology, risk management, and stakeholder expectations—a stark contrast to their previously strictly financial focus.
