Energy Costs Come to the Forefront
The shift away from carbon-emitting fuels and the unexpected spikes in natural gas pricing in 2022 have made industrial customers increasingly sensitive to energy costs in their location decisions.
Q1 2023
Industrial customers are increasingly sensitive to energy costs in their location decisions. In order to minimize risk, my clients are digging into the details of utility projections more than ever before, asking questions about rate structure, demand management, fuel costs and futures projections, fixed pricing options, taxes and fees, and long-term energy mix — in addition to energy availability, reliability, and availability of carbon-free or renewable sources. Utility pricing models, unique to each state and subject to often opaque regulation, make sorting through such comparisons a complex endeavor, and having a responsive and knowledgeable economic development utility team is critical to getting to a bottom line.
Utility partners have always been a critical part of the economic development team to attract new business to communities and states, but looking ahead, they will play an even bigger role in 2023 to win (or lose) large industrial site selection projects.
Project Announcements
Kimberly-Clark Expands Aiken County, South Carolina, Distribution Operations
05/04/2025
Aerowerks Plans Gaffney, South Carolina, Manufacturing Operations
05/04/2025
Sweden-Based Troax Group Plans Portland, Tennessee, Manufacturing Operations
05/04/2025
Kimberly-Clark Corporation Plans Warren, Ohio, Manufacturing Operations
05/04/2025
Denmark-Based Novonesis Expands Salem, Virginia, Production Operations
05/04/2025
Polyvlies USA Expands Winston-Salem, North Carolina, Manufacturing Operations
05/04/2025
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