CONSULTANTS COMMENTARY
Survey Results Point to a "Positive Hold"Brett Hunsaker, executive vice president and regional managing director at Newmark Grubb Knight Frank
Emergence of Big Data Affects Corporate Survey Respondents' PrioritiesBill Luttrell, senior locations strategist at Werner Enterprises
Corporate Survey Results Mirror General Market TrendsChristopher B. Schastok, vice president at Jones Lang LaSalleg
Corporate Survey Reflects the New Economic NormalThomas Stringer, Business Advisory Services, Ryan & Company
Thus, it is also of little surprise that new manufacturing facilities comprised more than a quarter of new domestic facilities, as clients continue to be focused on overall operating costs and increased productivity. Furthermore, as it pertains specifically to locating new manufacturing operations, many clients are seeking business-friendly and stable environments that are almost exclusively right-to-work, which provides a tremendous advantage for the Southern States. Interestingly there have been some recent high-profile successes by Midwest states to pass right-to-work legislation, but it is too early to say what the effect will be on future projects, although many companies have been carefully monitoring these changes.
The data also clearly highlights the overall impact that the economy is having on growth, with many respondents showing little confidence in a speedy economic recovery and a limited appetite to commit to large capital-intensive projects; however, there have been some notable exceptions, specifically in the high-tech and oil and gas industry. As a result, assistance offered in the form of discretionary economic incentives, especially tax credits and grants, will continue to play a role in helping to offset costs. Decision-makers will be looking for relevant tax credit programs that offer utility and are not simply prescriptive. Undoubtedly the competition for new projects will only heat up, and states with flexible incentive programs will be in the best position to succeed.
