The Latest Trends in Corporate Location Selection
According to the Site Selectors Guild, a professional organization of site selection consultants, the latest trends in corporate location selection show the effects of the “Great Resignation” and reflect the new permanence of remote work.
Companies with locations in high tax states, cities with rampaging housing costs, or places where commuting to work is a daily struggle are watching their employees vote with their feet: turnover is high, and companies that don’t respond to the new labor landscape will be left behind.
As a result, companies are taking a long hard look at their corporate locations. The decision to open a new location or move an existing one must take several newer factors into consideration.
Remote Work Is Permanent and Connectivity Is Key
Employees sent away from offices quickly discovered how much they preferred working from home. Some picked up stakes and moved to less congested, less expensive, and more rural areas.
However, remote work can’t succeed in areas without robust internet connectivity. States, counties, and municipalities trying to attract remote workers must demonstrate that trading city prices and congestions for wide open spaces, good schools, and open roads doesn’t mean losing internet connectivity or speed.
Manufacturing Is Booming While Offices Are Swooning
Manufacturing businesses are coping with surges in demand occurring at the same time as supply line snafus. The result is that some manufacturers are “reshoring” facilities, while others are looking to open new plants in lower cost areas that boast a robust, diverse, and skilled workforce, and the educational institutions to train more workers.
At the same time, office space is emptying out. Commercial real estate once devoted to corporate office space is being repurposed as residential space, or as temporary or even quasi-permanent distribution centers while manufacturers scramble for more warehouse space.
Green Energy Is In Demand
Corporations are under pressure to demonstrate efforts to significantly reduce their carbon footprints. Some businesses regard clean energy sources, like solar and wind, to be regarded as expensive and potentially unreliable, and sites under consideration may need to offer incentives to offset the cost of green energy.
Fundamentals Haven’t Changed That Much
Despite the latest trends in corporate location selection due to convulsions in labor markets and supply chains, the fundamentals of site selection haven’t actually changed that much. Cost of operations and the availability of talent still drive most site selection decisions.
On the labor side, workers remain interested in good wages, generous benefits, and a corporate commitment to work-life balance.
Companies impacted by the changes in work environments and worker dissatisfaction should consult a professional site selection company for advice on relocating.