Corporate Executive Survey Commentary: Clients Poised to Move Forward
Although policy uncertainty is delaying investment decisions, once projects are approved, companies are prepared to move forward.
Q1 2014
It’s no surprise that labor is the most important factor in site selection. What’s interesting is that availability of skilled labor is the top priority. Perhaps that speaks to a more challenging skills gap today. While educational attainment has tripled in the U.S. in the past 30 years, there is concern that skills for which we’ve trained don't match the skills industrial clients need.
It's also interesting to look at some detailed parts of the survey. Public policy is clearly influencing decisions. For example, about half of respondents indicated the biggest factors holding back investment decisions are taxes, regulations, and uncertainty over economic policy. At the same time, the majority feel that the need for capacity and ability to access new markets is the top factor in facility expansion. So on one hand, companies are eager for growth and access to markets, but for half of respondents, policy uncertainty is effectively delaying investment decisions.
It also appears clients are concerned about timing and are cautious, but once projects are approved, they’re prepared to move forward. Indeed, about 80 percent of respondents expect their site selection process to take less than a year once initial contact is made with the locations of interest. For those experienced in site selection, if a client needs to make a significant decision and wants the process completed that quickly, there’s concern about a consultant's or economic developer’s ability to make sure that decision is cost and service appropriate.
Finally, there is good news. Regarding clients’ expectations for project work, the majority are bottom-line determined to move ahead. While there are concerns over policy, taxes and regulations, and availability of skilled labor, they have determined that decisions must be made and, for most, here in the United States. About half of clients for new manufacturing and distribution facilities will move forward within the next year or two, which bodes well for Industrial real estate.
Project Announcements
Ferrero Expands Brantford, Ontario, Canada, Production Operations
04/19/2025
Switzerland-Based ABB Expands Senatobia, Mississippi, Production Operations
04/19/2025
Wow Bao Plans Forest City, North Carolina, Manufacturing Operations
04/19/2025
B-K Tool & Design Expands Putnam County, Ohio, Manufacturing Operations
04/19/2025
Lucid Group Plans Phoenix-Coolidge, Arizona, Manufacturing Operations
04/19/2025
Coast Expands Expands Salt Lake County, Utah, Operations
04/15/2025
Most Read
-
Run a Job Task Analysis
Q4 2024
-
The Location Economics of Advanced Nuclear
Q1 2025
-
39th Annual Corporate & 21st Annual Consultants Surveys: What Business Leaders and Consultants Are Saying About Site Selection
Q1 2025
-
NEW NIMBYism: A Threat to The U.S. Economy
Q4 2024
-
Power, Policy, and Site Selection in 2025
Q1 2025
-
Designing Beyond the Assembly Line
Q1 2025
-
Why Workforce Readiness Can’t Wait
Q1 2025