Consultants Survey Reflects Shift in Ranking of Site Selection Factors
A responsive state and local government, incentives offerings, and site readiness now outweigh costs in the location decision.
Q1 2024
Companies continue to look to state, local, and federal incentive opportunities to help meet internal investment return hurdles needed to justify the deployment of capital for projects. It is understandable why “state and local incentives” is tied for second place.
In the final tied second place ranking, it is not surprising that “available land” rose in importance in the rankings. States have known for several years that site and land scarcity was becoming more of an issue and have created numerous site-readiness programs throughout the U.S. to start to address the problem.
It is also noteworthy that “labor costs” and “construction costs” significantly dropped in the rankings with site consultants considering them less important than in previous years. We would attribute the labor costs ranking drop to companies realizing that, in this environment, it is very challenging to attract and retain a skilled workforce by paying below market wages and, therefore, companies have already adjusted. Our clients have experienced skyrocketing construction costs in 2023 — including for construction labor — causing delays, while companies look for ways to reconstitute projects to take costs out, effectively building — in some cases — what is needed in the near-term as opposed to building for future growth.
Project Announcements
Kikkoman Foods Plans Jefferson, Wisconsin, Operations
04/26/2024
BWX Technologies Expands Cambridge, Ontario, Nuclear Production Operations
04/26/2024
Greenheck Group Plans Knoxville, Tennessee, Operations
04/26/2024
Local Bounti Plans Pasco, Washington, Indoor Agricultural Operations
04/26/2024
Innovative Construction Group Plans Siler City, North Carolina, Production Operations
04/26/2024
Crystal Window and Door Systems Plans Mansfield, Texas, Headquarters-Production Operations
04/25/2024
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