Labor availability, energy costs, and sustainability emerge as key priorities for corporate leaders and site selection consultants
NEW 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:
- 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.
- 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.
- 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.
“These findings highlight the complex, evolving nature of site selection in 2025,” said Andy Greiner, Editor of Area Development. “Labor and energy concerns remain front and center, but the rise of sustainability and the impact of shifting policies suggest that corporate leaders are thinking long-term when making location decisions.”
Full survey results and analysis are available now at areadevelopment.com.
About Area Development
Area Development is the leading publication covering corporate site selection and economic development. With expert analysis, exclusive industry research, and in-depth reporting, Area Development provides business leaders, consultants, and economic developers with the insights they need to navigate the changing landscape of corporate investment.
Contacts
Media Contact
Andy Greiner
Editor
Area Development Magazine
312-607-6627
agreiner@areadevelopment.com
areadevelopment.com
