How Energy Factors Into The Location Decision
While nearly every business sector has an eye on energy availability, it isn't the top consideration for location choices.
Apr/May 10

Corporate managers appeared only slightly more concerned with energy availability and costs in 2009 than they were in 2008. The 2009 score is only 0.1 percent and one position higher than in 2008, a year when energy costs spiked and supplies came into question. Consultants showed similar concerns, with the factor's score shifting only 1 percent, although that contributed to a drop of three positions.
Other Considerations
Corporate respondents viewed labor costs, highway accessibility, and tax exemptions as more important than energy considerations. But site selection consultants ranked highway accessibility, labor costs, occupancy or construction costs, availability of skilled labor, state and local incentives, and availability of land above the availability and cost of energy in making location decisions. In both instances, the combined scores showed little change over the years, while shifts in other factors contributed to the rankings of energy availability and costs in 2009. Notably, occupancy or construction costs dropped from the third to seventh spot, and corporate tax rate rose from the eighth to fifth spot in the Corporate Survey, while labor costs moved from the tenth to second spot with the ascent of real estate factors in the Consultants Survey.
Cost of Consumption
In 1999, the average spot market price of a barrel of crude was $16.56. By 2004, that price had more than doubled to $37.66 in 2004 dollars, and $43.17 adjusted for inflation. The price continued rise to an average of $91.48 in 2008 before a drop to $53.48 in 2009, and currently $69.85 at press time. Geopolitics and China's thirst for crude have magnified this market disruption.
Project Announcements
Axle Logistics Expands Knoxville, Tennessee, Operations
11/29/2023
EquipmentShare Establishes Moberly, Missouri, Operations
11/29/2023
IronLink Logistics Plans Ladson, South Carolina, Operations Hub
11/24/2023
Maid-Rite Specialty Foods Expands Dunmore, Pennsylvania, Operations
11/24/2023
Pipe & Steel Industrial Fabricators Expands Livingston Parish, Louisiana, Operations
11/24/2023
Sage Automotive Interiors Expands Abbeville County, South Carolina, Operations
11/23/2023
Most Read
-
2023 Top States for Doing Business Meet the Needs of Site Selectors
Q3 2023
-
The Rise of Mid-Size U.S. Cities: The Industrial Development Boom
Q3 2023
-
Front Line: Brownfields Offer Redevelopment Opportunities
Q4 2023
-
2023 Top States Commentary: Top-Ranked States Have What It Takes to Win Mega Projects
Q3 2023
-
37th Annual Corporate Survey: Economic Pressures Exerting Greatest Effect on Decision-Makers
Q1 2023
-
2023 Top States Workforce Development Programs
Q3 2023
-
Immigration: A Potential Fix for Labor Shortages?
Workforce Q4 2023