COVID-19 IMPACT ON SITE SELECTION TRENDS

Real estate

COVID-19 IMPACT ON SITE SELECTION TRENDS

Top Location Advisors from Around the World Weigh In.

COVID-19 Impact on Site Selection Trends

The Site Selectors Guild made up of the top 50 location advisors from around the world, including our very own Senior Vice President, Monty Turner, revealed some interesting site selection trends in their newly released Site Consultant Survey.

The July 2020 survey results showed continued optimism among Guild respondents, with 61% of projects reported as moving forward compared to 45% reported in the first COVID-19 related survey released in April. A further 34% of Guild members indicated companies are pausing site selection projects, down from April’s high of 52%. The remaining 5% of respondents reported companies are consolidating facilities or canceling site selection projects.

The majority of Guild members believe project activity will rebound in 2021, with 39% indicating a Q1 2021 timeframe and 26% signaling after Q1 2021. The report notes that if COVID cases continue to rise across the US, then timelines could push further.

Reshoring in the Suburbs

Even with the continued risk of infections in America, there is still a sentiment of manufacturers needing to reshore operations back to the United States to mitigate the risk inherent to global supply chains. The manufacturing pendulum now swings back to focus on the total cost of production and producing finished goods as close to the customer as possible.

Suburbs and mid-size cities are projected to be the real winners of this seismic shift. When Guild members were asked about locations that are likely to be considered by companies looking to expand, “64% chose suburban areas, 57% chose mid-size cities, 31% chose rural areas, and just 10% chose large urban areas.” If demand for manufacturing and e-commerce distribution space grows as predicted, locations outside large urban cores and mid-size cities will be the likely leaders to emerge from the COVID-19 pandemic.

Top 5 Industries for Growth

In terms of industry sectors leading the way, Guild members acknowledged the top five most active industries set for growth in the United States are:

  1. Biotech and Life Sciences
  2. Advanced Manufacturing
  3. Food and Beverage Processing
  4. Transportation and Logistics
  5. Software and IT

The following infographic, provided by the Site Selectors Guild, depicts the overall findings of the July 2020 survey.

Site Selection Infographic

As companies begin examining the need to reshore, expand, or even consolidate, Colliers Site Selection Services can support you starting with Supply Chain Analysis, Labor Market Analysis, Operating Costs Analysis, Real Estate, and Incentives Negotiations as well as Design and Construction Project Management.

If your company is looking to expand at an existing operation – including regular capital maintenance with the potential of additional jobs – or a new greenfield investment, let’s have a quick discussion to see how Colliers Site Selection Services can be of service.

In the wake of COVID-19, contacting our team could make the difference in your project moving forward.