Site Selection Insights from Women in Economic Development

I recently attended  The Woman in Economic Develop Forum in Chicago, IL  where I met with several site selectors to get an update on what they are seeing and hearing from companies.  Many companies throughout the world reach out to a site selection firms to request assistance in  location analysis, site selection, and strategy comparisons.  These site selectors learn firsthand what companies need in order to expand or relocate, as well as how industries are growing, contracting or otherwise changing.  Much of the information shared at the forum was repeated by more than one expert.

Overall there are positive trends and activity regarding company requests and growth needs.  Most site selectors are predicting an increase in activity for 2013 across the country and industries.

Key points that were discussed during the forum:

Project Trends

• Fewer consolidation projects happening and there are more expansion needs.  Not all of these expansions are taking place in new locations, many are happening at a company’s existing facility.
• Companies are looking for new locations to set up regional facilities in order to be closer to their customers.

Industry Trends

•  There has been a lot of activity in the steel and aircraft industries.  The aircraft demand is specific to the commercial segment,  due to the aging of existing aircraft and growing markets.

Workforce

• Workforce concerns continue to be a growing and hot topic.  Many companies are doing a lot of due diligence to better understand a region’s workforce trends. Companies want to know if a region has experienced workers and their ages.
• Companies find it important to locate in regions that have strong programs at local trade schools, colleges and universities.
• Companies are looking to state programs to assist them in providing  younger workers with  the skills they need to work in their available manufacturing positions.

Incentives

•  Incentives are an important factor in a company’s decision making process.  Companies look for a clear explanation of incentive programs, including how and when the incentives will be paid.
• Companies desire front loaded incentives, but they are also facing more claw back provisions in the first couple years.
• The timing of needed infrastructure plays a role and how incentives can be utilized to develop that infrastructure.