23rd Annual Corporate Survey Analysis by Gary Yates
Dec/Jan 09

Well, I've got good news and I've got bad news. The bad news is that planned new facilities and planned expansions are down for this year. The good news is that both planned new facilities and planned expansions are reportedly higher for next year. While many of the respondents say the economy has affected growth plans, 62 percent have new facilities planned in one to four years (and that's up from 51 percent in 2007, 54 percent in 2006, and 55 percent in 2005). In the world of economic development and site selection consulting, this translates to a lot of due diligence work now.but with delayed gratification.
While delayed growth appears optimistic, the volatility of the marketplace could have a greater impact than respondents indicated. Only 32 percent of respondents said the tightening credit market would affect their facility plans. However, recent events - such as the Big Three automakers asking Congress for $34 billion, and the inability of many businesses to get loans just to cover the cash flow cycle - will definitely impact optimism. Look for better flowing credit as the leading indicator of facility expansions and new facility developments.
It is clear that cost savings will be driving all near-future site selections. Four of the top-five site selection factors are directly related to cost. The number-one factor, highway accessibility, could arguably be a cost component. Tax exemptions have shot from tenth place to fourth, despite 50 percent of respondents saying tax incentives have fallen short. This is an opportunity for communities.in this time of high unemployment, job creation opportunities should be viewed as a win for the community, and the tax breaks to the new companies are a win for them. In 2009, expect many companies to be shopping for reduced cost locations in preparation for an optimistic economic market.
Project Announcements
Maid-Rite Specialty Foods Expands Dunmore, Pennsylvania, Operations
11/24/2023
Pipe & Steel Industrial Fabricators Expands Livingston Parish, Louisiana, Operations
11/24/2023
Sage Automotive Interiors Expands Abbeville County, South Carolina, Operations
11/23/2023
Katoen Natie Expands Norfolk, Virginia, Operations
11/23/2023
Rocket Lab USA Plans Middle River, Maryland, Space Structures Operations
11/23/2023
Ireland-Based Burnside America Expands Franklin County, Pennsylvania, Operations
11/23/2023
Most Read
-
2023 Top States for Doing Business Meet the Needs of Site Selectors
Q3 2023
-
The Rise of Mid-Size U.S. Cities: The Industrial Development Boom
Q3 2023
-
Front Line: Brownfields Offer Redevelopment Opportunities
Q4 2023
-
2023 Top States Commentary: Top-Ranked States Have What It Takes to Win Mega Projects
Q3 2023
-
2023 Top States Workforce Development Programs
Q3 2023
-
37th Annual Corporate Survey: Economic Pressures Exerting Greatest Effect on Decision-Makers
Q1 2023
-
Immigration: A Potential Fix for Labor Shortages?
Workforce Q4 2023