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Q4 2014
Cover Story
Skilled Labor / STEM >>

Critical Site Selection Factor #1: Availability of Skilled Labor an Acute Need

Dale D. Buss, Staff Editor, Area Development (Q4 2014)
With a growing U.S. economy and an “onshoring” trend fanning demand, the availability of skilled labor has become the #1 factor in site decisions. More
Logistics / Infrastructure >>

Critical Site Selection Factor #2: Highway Accessibility - The Supplier/Market Connection

Dale D. Buss, Staff Editor, Area Development (Q4 2014)
Highway accessibility ranks as the #2 most important factor to corporate executives, certainly reflecting the crucial role of transportation costs and logistical efficiencies in a U.S. and global market with less and less margin for error in the supply chain. More
Labor Costs / Organized Labor >>

Critical Site Selection Factor #3: Labor Costs vs. Quality Dilemma

Dale D. Buss, Staff Editor, Area Development (Q4 2014)
Although still of great importance, labor costs have taken a back seat to other factors. The importance of the outright cost of labor eased in the latest Area Development survey, to the #3 factor, compared with its ranking as the #1 factor in the prior year’s survey of corporate executives. More
Construction / Project Planning >>

Critical Site Selection Factor #4: Occupancy / Construction Costs on An Upward Trend

Dale D. Buss, Staff Editor, Area Development (Q4 2014)
The higher importance reflects not only the continued proportional significance of occupancy and construction costs in companies’ overall cost equation, but also the fact that such costs are continuing to ratchet up as the U.S. and global economies proceed with recovery at varying paces, increasing demand and nudging up prices. More
Logistics / Infrastructure >>

Critical Site Selection Factor #5: Advanced ICT - Companies Look to Visionary Locales

Dale D. Buss, Staff Editor, Area Development (Q4 2014)
The rise of “big data” in nearly every industry vertical has promoted continued importance of a robust information and communications technology (ICT) infrastructure as a site selection factor. More
Economy / Market Analysis >>

Critical Site Selection Factor #6: Available Buildings - Can’t Get Much Tighter

Dale D. Buss, Staff Editor, Area Development (Q4 2014)
Now that we are in a clear growth mode, companies seeking industrial, distribution, R&D facilities, and office space increasingly are pressed to find existing buildings that will accommodate their needs. More
Taxes / Incentives >>

Critical Site Selection Factor #8: State & Local Incentives Figure More Heavily

Dale D. Buss, Staff Editor, Area Development (Q4 2014)
The importance of state and local incentives smashed up through the ranks of site selection factors to #8 in Area Development’s most recent Corporate Survey from #13 a year earlier. And, with big money at stake, states are more careful to make sure they are getting what they pay for. More
Taxes / Incentives >>

Critical Site Selection Factor #7: Lower Corporate Tax Rate Rates = Stronger Economies

Dale D. Buss, Staff Editor, Area Development (Q4 2014)
A state’s corporate tax rate is usually a bedrock indicator of its business-friendliness and a simple but substantial number that has a huge long-haul impact on the financial performance of a new plant or other facility. More
Site Selection Factors / Strategy >>

Critical Site Selection Factor #10: Energy Availability and Costs Losing Currency

Dale D. Buss, Staff Editor, Area Development (Q4 2014)
The cost and availability of energy has been dropping in importance as a site selection factor, ranking #10 in the 2013 Area Development Corporate Survey, down from its #6 position a year earlier. The drop seems to reflect a persistent weakness in natural gas prices as well as a steady rise in alternative-energy capabilities across the country. More
Labor Costs / Organized Labor >>

Critical Site Selection Factor #9: Low Union Profile - Unions Still a “No-Go” Factor for Many

Dale D. Buss, Staff Editor, Area Development (Q4 2014)
Having a low union profile ranked as slightly more important in Area Development’s latest Corporate Survey, up one position to #9. But in a similarly incremental sense, U.S. unions overall actually may have gained some ground over the last year. More
Corporate HQ / Office >>

Urban vs. Suburban: Which Location Will Allow Your Company to Grow?

Julia Georgules, Vice President, Associate Director of Office Research, JLL (Q4 2014)
The key to urban vs. suburban or balancing millennial interests and boomer practicality is deciding which location and workplace strategy will accommodate growth. More
Advanced Manufacturing >>

Advanced Technology and the Changing Face of U.S. Manufacturing

Mark Crawford, Staff Editor, Area Development (Q4 2014)
U.S. manufacturers are investing in advanced equipment, automation, and robotics in order to drive down the cost of production and compete in the global economy. The net result has the potential to transform our industrial base. More
Taxes / Incentives >>

Securing Incentives With a Well-Paid Workforce

Robert Foley, Manager, Global Location & Expansion Services, KPMG LLLP (Q4 2014)
As a growing number of states augment their business incentives with Quality Jobs programs, manufacturing, technology and other high value-add companies are well positioned to potentially reap significant and often enhanced tax and non-tax benefits. More
DCs / Warehousing >>

Six Predictions Regarding the Industrial RE Market Recovery and How They Have Played Out

John Morris, Executive Managing Director, Americas Industrial & Logistics Leader, CBRE (Q4 2014)
When the industrial real estate recovery began, the trends that likely would drive its transformation and progress became a favorite discussion topic among industry practitioners. Just a few years later, our sector continues on a solid, positive trajectory. Now feels like a good time to look at whether those early prognostications have played out. More
Site Selection Factors / Strategy >>

Going Beyond Traditional Metrics in the Site Location Process to Find a Perfect “Fit”

Justin T. Bickle, Project Manager, Corporate Real Estate, DHL Global Business Services (Q4 2014)
A comprehensive location strategy looks beyond the financial and real estate aspects of a community and carefully identifies characteristics that are not found in data sets, culminating in a project agreement that places emphasis on “community fit” and “service after sale” in addition to incentive programming. More
Biotech / Life Sciences >>

Revolutionary Advances in Life Sciences amid Industry Disruption and Uncertainty

Mark Crawford, Staff Editor, Area Development (Q4 2014)
Major economic, social, and regulatory factors are having big impacts on the life sciences and medical device industries, representing an opportunity for innovative companies to become new leaders and gain market share. More
Economy / Market Analysis >>

Editor’s Note: Expanding Economy’s Need for Skilled Labor

Geraldine Gambale, Editor, Area Development Magazine (Q4 2014)
On the third anniversary of National Manufacturing Day — October 3, 2014 — the Labor Department reported that unemployment fell to 5.9 percent in September — the lowest level in six years! Analysts also predicted hiring would remain solid, as business investment and consumer spending are increasing, and the annual pace of economic growth is expected to remain above 3 percent. More
Sustainable Development >>

In Focus: Measure By Measure, Green and Productivity Goals Become Aligned

Bob Best, Executive Vice President - Energy and Sustainability Services, JLL (Q4 2014)
Does going green mean your workforce becomes more productive? Sometimes — but not all green workplaces are created equal. Unearthing the hard evidence that a company’s sustainability programs are — or are not — enhancing productivity requires meaningful metrics that quantify both sustainability tactics and productivity impacts. More
Manufacturing / Industrial >>

First Person: Cybercrime’s Tax on Manufacturing Innovation and Growth

Larry Clinton, President, Internet Security Alliance (Q4 2014)
Area Development recently spoke with Larry Clinton, the president and CEO of the Internet Security Alliance, who noted that cyber security needs to be woven into corporate processes. When done successfully, it can help build competitive advantage. More
Front Line
Aerospace >>

Frontline: Preparing for Takeoff in the Drone Industry

Craig Guillot, Staff Editor, Area Development (Q4 2014)
As drones become smaller, more affordable, and easier to operate, they’re being eyed for use in everything from agriculture to construction and real estate. The Federal Aviation Administration (FAA) says there could be 30,000 of them in American skies by 2020, and according to the Association for Unmanned Vehicle Systems International (AUVSI), the business of manufacturing and flying drones could become an $82 billion industry within 10 years. More
Exclusive Online Content
Mississippi >>

Mississippi: A Top Manufacturing State Is Meeting Its Challenges Head On

Steve Kaelble, Staff Editor, Area Development (Q4 2014)
In many parts of the country, manufacturing is more of a fond memory than a reality. Not so in Mississippi, which is very much a state that makes things. More
Sustainable Development >>

In Focus: Enhancing the Sustainability of Existing Buildings

Dan Aghdam, President, RM Thornton Mechanical (Q4 2014)
Existing buildings 20 years or older, constructed at a time when energy consumption and environmental impact were barely considered, make up 72 percent of commercial square footage in the United States. There are many cost-effective opportunities for achieving environmental benefits and reducing energy consumption by promoting more sustainable operations among these assets. More

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