Energy Costs Come to the Forefront
The shift away from carbon-emitting fuels and the unexpected spikes in natural gas pricing in 2022 have made industrial customers increasingly sensitive to energy costs in their location decisions.
Q1 2023
Industrial customers are increasingly sensitive to energy costs in their location decisions. In order to minimize risk, my clients are digging into the details of utility projections more than ever before, asking questions about rate structure, demand management, fuel costs and futures projections, fixed pricing options, taxes and fees, and long-term energy mix — in addition to energy availability, reliability, and availability of carbon-free or renewable sources. Utility pricing models, unique to each state and subject to often opaque regulation, make sorting through such comparisons a complex endeavor, and having a responsive and knowledgeable economic development utility team is critical to getting to a bottom line.
Utility partners have always been a critical part of the economic development team to attract new business to communities and states, but looking ahead, they will play an even bigger role in 2023 to win (or lose) large industrial site selection projects.
Project Announcements
Quantum Fuel Systems Plans Wixom, Michigan, Manufacturing Operations
03/17/2024
The Paslin Company Expands Pontiac-Shelby-Warren, Michigan, Operations
03/17/2024
Schneider Electric Plans-Expands Mt Juliet-Smyrna, Tennessee, Production Operations
03/15/2024
FreezPak Logistics Plans Suffolk, Virginia, Cold Storage Operations
03/15/2024
FrameTec Plans Casa Grande, Arizona, Production Operations
03/15/2024
Ferroglobe Plans Wallace, South Carolina, Production Operations
03/14/2024
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