Survey shows skilled labor still a big factor in business site selection

Availability of skilled labor, highway accessibility, quality of life, and water access, were among the four most significant motivators for corporate site selection and expansion planning, according to results from a new Area Development survey.

The publication, which focuses on site and facility planning and the issues that drive such decisions, has conducted its annual survey for three decades with the 2016 findings representing its 30th annual report.

This year, there were 130 Corporate Survey respondents, and 92.9% of them (121) cited availability of skilled labor as either “important” or “very important” when it came to the factors influencing site selection. This represented the Survey’s largest percentage increase. Highway accessibility came in second with an 88% importance rating, while 87.6% rated overall quality of life third.

Water availability’s importance rating was considerably lower, logging an importance rating of just 54.6%, but it was nevertheless noteworthy because it represented the second largest percentage increase on a year-to-year basis. The factor showing the largest decrease in its importance rating (dropping 11.8% and from third to 13th in the rankings) was available land, with a 73.9% importance rating.

Other key findings in the Corporate Survey included regional preference, with the South garnering 17% — the largest amount — of corporate respondents’ planned new domestic facilities. This was followed by the Southwestern U.S. at 16%, and the South Atlantic at 13%. For new foreign facilities, Western Europe led the way with 17% of the Corporate Survey respondents’ planned new projects, followed by Mexico and South America, accounting for 13% each.