Labor availability, energy costs, and sustainability emerge as key priorities for corporate leaders and site selection consultantsNEW YORK--(BUSINESS WIRE)--Area Development, the leading publication covering corporate site selection and economic development, has released the findings of its 39th Annual Corporate Survey and 21st Annual Consultants Survey, providing an in-depth look at the top factors shaping business expansion and location decisions in 2025.
With economic conditions in flux and policy shifts influencing investment strategies, corporate executives and site selection consultants alike are prioritizing skilled labor availability, economic incentives, and energy costs when evaluating potential sites. However, this year’s survey results show notable shifts in how companies and consultants approach site selection.
Among the key findings:
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Energy availability and costs have become a major concern.
Businesses report growing apprehension about rising industrial energy
costs and grid reliability, particularly in high-consumption sectors
like manufacturing and data centers.
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The South and Midwest remain top destinations. Pro-business
policies, strong workforce pipelines, and strategic logistics advantages
continue to make these regions attractive for corporate investment.
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Corporate expansion plans are cautious. Only one in ten
corporate leaders surveyed plan to open a new U.S. facility in 2025, a
sharp decline from last year’s survey. Rising costs and economic
uncertainty are leading businesses to be more selective about where they
grow.
- Foreign direct investment and reshoring continue to shape the landscape. While nearshoring efforts are increasing, new tariffs could present challenges for manufacturers weighing domestic production versus overseas operations.
RSK: The midwest is still the prime location along with the south. A good pipeline of workers and energy plus water resources is the key. WIsconsin better be careful on granting utilities increased rates.
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- - Volume: 25 - WEEK: 17 Date: 4/23/2025 9:50:21 AM -