24th Annual Corporate Survey Analysis by Chris Steele
Dec/Jan 10
Interestingly, the 2009 data still shows that while activity for new domestic facilities is down, the mix of uses remains roughly the same between 2008 and 2009: Manufacturing and warehouse/distribution projects still lead, making up roughly 70 percent of all new facility projects in 2009.
The responses also show that activity is significantly up in the Mid-Atlantic region (15 percent of all projects in 2009 as compared with 7 percent in 2008) and down in the Plains (10 percent in 2008, 4 percent in 2009). Movement to domestic offshore locations is also up (4 percent of all projects in 2009 as compared with 2 percent a year ago).
While difficult to say from the data, the increase in activity for the Mid-Atlantic region could reflect a response to 2008's fuel costs and the desire to locate production closer to areas of higher population density. This argument is bolstered by the international data, which shows that the single region showing the largest gain in new facilities projects is Western Europe! This region went from 9 percent of new projects planned in 2008 to 14 percent in 2009. (Asia remained constant, with the largest overall percentage of projects, 39 percent.) This activity could be indicative of a move toward some form of "new normal." A move toward population centers hedges against fluctuations in fuel prices due to long-distance logistics, in addition to supporting general growth plans.
We still do not know how long this economic downturn will last, or if, in fact, this is a more permanent state of affairs. If so, next year's survey results could show an uptick in activity for new reasons. Indeed, deal flow may increase solely due to decisions that can be deferred no longer, higher fuel costs, and a general desire to gain any level of competitive advantage in the new economic reality.
Project Announcements
Axle Logistics Expands Knoxville, Tennessee, Operations
11/29/2023
EquipmentShare Establishes Moberly, Missouri, Operations
11/29/2023
IronLink Logistics Plans Ladson, South Carolina, Operations Hub
11/24/2023
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
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