WESTBURY, N.Y.--(BUSINESS WIRE)--Area Development’s 34th Annual Corporate Survey and 16th Annual Consultants Survey were conducted in early January and, therefore, reflect the respondents’ expectations for new facilities and site selection priorities at that time.
Of the 100 corporate respondents, 53 percent represent manufacturing firms and 6 percent distribution/logistics operations. Sixty percent of the respondent companies employ fewer than 100 people, and 45 percent of the Corporate Survey respondents said they plan to open new facilities within the next five years, although about three quarters said neither the USMCA nor Phase 1 China trade agreement will affect their 2020 facility plans.
In contrast, of the 60 consultant respondents, more than half said their clients’ future facility plans would be affected by the USMCA and the Phase 1 China trade deal. Interestingly, nearly 70 percent of the responding consultants work with clients having 500 or more employees, and more than 80 percent are working with manufacturing firms.
Highway accessibility is ranked as the #1 site selection factor by the Corporate Survey respondents, followed by availability of skilled labor and labor costs. The respondents to our Consultants Survey rank the same three factors as most important, but in a slightly different order: #1 is availability of skilled labor, followed by labor costs, and then highway accessibility.
As in past years, southern regions will garner the largest share of all the respondents’ planned new domestic facilities. Interestingly, Asia and Mexico will receive about a quarter each of the corporate respondents’ new foreign establishments. Canada, Mexico, and Asia will each receive 16 percent of the consultants’ clients’ new projects.
A full review of this year’s Corporate and Consultants Surveys can be found in the Q1/2020 issue of Area Development and online at areadevelopment.com/survey.
Area Development is published quarterly and also maintains several highly visited websites, which can be reached at www.areadevelopment.com. It also has produced more than 50 Best Practices Consultants Forums for economic developers since 2006.