35th Annual Survey of Corporate Executives Commentary: Realignment of Supply Chains and Automation Mitigate Risks
Companies are realigning their supply chains while also instituting automated processes, which makes them more sensitive to energy reliability and rates.
Q1 2021
The change in the number of facilities during the past 12 months is of particular interest as 78 percent of respondents indicate they have been static. An increase of facilities account for 14 percent of responses and 9 percent showed a decrease, so there is a positive net new facilities over the past 12 months. Even more interesting is the 30 percent revealing they plan to expand their domestic footprint within the next two years, of which manufacturing and warehouse distribution account for 73 percent. This metric falls in line with the 49 percent that have instituted more automated processes in response to COVID-19 and runs perfectly in parallel with the rise of energy availability and cost as important site selection criteria. This rose from 7th place last year to No. 3 this year.
Our clients have witnessed the increased importance of energy availability and cost to the overall business competitiveness of the United States in global location strategy. The United States will continue to see a new age of industrial expansion as companies realign their supply chains. This helps mitigate risk and reduces cost by locating closer to their end markets. It also results in higher levels of automation, which make users more sensitive to energy reliability and rates. The automation facilitates these operations meeting their labor requirements in an economy in which labor can be scarce, despite the higher unemployment stemming from the pandemic. Add the effects of COVID-19 to the boom in e-commerce and you have a recipe for major industrial growth over the coming years.
Project Announcements
AATW Establishes Anderson County, Kentucky, Operations
09/20/2023
Chick-fil-A Supply Plans Kannapolis, North Carolina, Distribution Center
09/20/2023
National Meat and Provision Company Expands Baptist Parish, Louisiana, Production Operations
09/20/2023
Pratt Industries Expands Pennsylvania, Operations
09/20/2023
U.S. Soccer Federation Plans Atlanta, Georgia, Headquarters-Training Center
09/18/2023
Israel-Based Isotopia Molecular Imaging Plans Westfield, Indiana, Operations
09/18/2023
Most Read
-
2023 Top States for Doing Business Meet the Needs of Site Selectors
Q3 2023
-
2022 Top States for Doing Business Provide an Environment for Business Growth
Q3 2022
-
Why the Southeast Is Winning EV Projects, With More on the Way
Q3 2023
-
EV and Semiconductor Projects Stand Out in States Receiving Area Development’s 18th Annual Shovel Awards
Q2 2023
-
Power-Intensive Site Selection
Q3 2023
-
EV Impacts to Watch in 2023 and 2024
2023 Auto/Aero Site Guide
-
First Person: Establishing a Robust Rare Earth Magnet Supply Chain
Q3 2023