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
UAE-Based Emirates Global Aluminium Plans Tulsa, Oklahoma, Production Operations
05/19/2025
Prolec-GE Waukesha Expands Goldsboro, North Carolina, Manufacturing Operations
05/19/2025
South Korea-Based Hyosung HICO Expands Memphis, Tennessee, Transformer Manufacturing Operations
05/16/2025
Amazon Plans Goochland County, Virginia, Fulfillment Operations
05/16/2025
Reworld Plans Park Hills, Missouri, Material Processing Operations
05/16/2025
Sumitomo Drive Technologies Upgrades Chesapeake, Virginia, Warehouse-Distribution Operations
05/16/2025
Most Read
-
First Person: Joe Capes, CEO, LiquidStack
Q2 2025
-
Run a Job Task Analysis
Q4 2024
-
39th Annual Corporate & 21st Annual Consultants Surveys: What Business Leaders and Consultants Are Saying About Site Selection
Q1 2025
-
The Location Economics of Advanced Nuclear
Q1 2025
-
Why Workforce Readiness Can’t Wait
Q1 2025
-
The Legal Limits of DEI in Incentives Agreements, Hiring, and
Q2 2025
-
Is It Time to Start Planning for Quantum Data Centers?
Q1 2025