Corporate Survey Analysis: Company Plans Real Insight of Surveys by Robin Spinks and Mary Lilley, Greenfield
The insight of company's planning strategies shows that a quarter of businesses delayed expansions in 2010 due to the recession.
Winter 2011
A few interesting statistics jump out at me. First, all the search criteria are important - all but 6 of 35 site selection and quality-of-life factors were ranked by the majority (50 percent or more) of the respondents as "important" or "very important."
Second, because cost issues have climbed up the list of importance over the last few years, I optimistically derive that most communities must be doing a better job with availability of required assets so that cost now becomes more important. Pessimistically speaking, perhaps the communities without the assets are just never in the game. For example, project planners (81 percent) continue to want existing buildings. This site selection factor eliminates a lot of communities quickly. Third, I think it interesting that 60 percent of the respondents say they consider whether other similar businesses are in the search geography. Does this mean that they do, or do not, want to be in a cluster? I have seen it both ways.
Fourth, the real insight in this survey is about plans. The survey results indicate that 25 percent of companies delayed their facility plans due to the recession. Based on my personal experience with clients I would have assumed this number to be much higher. In addition, nearly 40 percent of the companies surveyed expect to open a new facility within two years. Our anecdotal evidence is that search activity has significantly increased in the past six months, and the survey results reflect this trend.
According to stock analysts, companies have cash on hand as a result of severe cost-cutting. If so, now they have resources to better leverage the difficult debt market and make capital expenditures. I am encouraged. On the other hand, the "jobless recovery" may continue, since 49 percent of the proposed projects in the United States will create fewer than 20 new jobs. The survey results suggest higher employment levels for projects overseas.
Finally, the growth trend is in "green" initiatives and sustainability projects. According to the survey, nearly 60 percent of the respondents say they are taking re-use or recycling measures. Is it time to consider redevelopment of brownfield sites as a recycling activity? Can reuse also include creative repurposing of functionally obsolete buildings? I look forward to seeing innovative projects that turn industrial blight into vibrant employment centers again.
Project Announcements
Northland Corporation Expands Greenville, Michigan, Operations
08/29/2024
Swedish Match Expands Daviess County, Kentucky, Operations
08/29/2024
Ardent Mills Expands Commerce City, Colorado, Production Operations
08/29/2024
Paul Mueller Company Expands Springfield, Missouri, Manufacturing Operations
08/29/2024
Nashville Wire Products Expands McEwen, Tennessee, Operations
08/28/2024
Crusoe Energy Systems Plans Tulsa, Oklahoma, Manufacturing Operations
08/27/2024
Most Read
-
19th Annual Area Development Gold and Silver Shovel Awards
Q2 2024
-
What the Latest EPA PFAS Rule Means for Site Due Diligence
Q3 2024
-
Semiconductors’ fragile relationship with water may be tested
Q3 2024
-
2023 Top States Commentary: Top-Ranked States Have What It Takes to Win Mega Projects
Q3 2023
-
2023 Top States for Doing Business Meet the Needs of Site Selectors
Q3 2023
-
2023's Leading Metro Locations: Hotspots of Economic Growth
Q4 2023
-
Mitigating Site Risks for Industrial Projects
Q3 2024