WESTBURY, N.Y.--(BUSINESS WIRE)--The results Area Development’s 32nd Annual Corporate Survey and 14th Annual Consultants Survey provide insight on how recent and proposed legislative and regulatory changes are affecting our readers’ site selection plans, as well as the plans of consultants’ clients.
Of the 115 corporate respondents, 37 percent represent manufacturing firms and 13 percent distribution/logistics operations. About half the respondent companies employ fewer than 100 people. Although nearly half the Corporate Survey respondents say they plan to open or expand facilities within the next five years, only a third cite the corporate tax cut or regulatory reforms as an impetus. However, nearly 60 percent think opting out of trade agreements will have a positive effect on their plans for new or expanded facilities.
In contrast, of the 62 consultant respondents, about two thirds feel their clients will move forward with new or expanded facilities plans as a result of the cut in the corporate tax rate, with 50 percent citing regulatory reforms as also motivating their clients to move forward. Two thirds also believe opting out of trade agreements will have a negative effect on their clients’ plans. Nearly two thirds of the responding consultants work with clients having 500 or more employees.
Highway accessibility is ranked as the #1 site selection factor by the Corporate Survey respondents, followed by labor costs and availability of skilled labor. The respondents to our Consultants Survey rank availability of skilled labor as the #1 factor, followed by labor costs and proximity to major markets.
The South will garner the largest share of all the respondents’ planned new domestic facilities. Asia will receive 21 percent of the corporate respondents’ new foreign establishments, with the consultants’ clients planning 20 percent of their projects for Canada and for Mexico.
A full review of this year’s Corporate Survey can be found in the Q1/2018 issue of Area Development and online at areadevelopment.com/survey.
Area Development is considered the leading resource for site and facility planning. It also provides two free GIS-driven databases: FacilityLocations.com, which lists more than 5,000 economic development contacts; and FastFacility.com, which lists available industrial buildings and sites. Area Development also produces e-newsletters.