After reviewing the results of this year’s survey, we find that the viewpoints and ranking expressed by the
respondents are consistent with those decision-making factors we experience with our clients currently — as well
as in the past. Overall, the data collected from the respondents represents a control group that has remained very
consistent over time; therefore, the results can be compared on a year-by-year basis in a meaningful manner.
Looking at
Key Indicators 2004 2005 2006 2007 2008
the rankings over
time (2003–2008), Of New Facilities Planned (one) 41% 42% 47% 45% 46%
the top- 10 factors
Of New Domestic Jobs Planned (<50) 58% 50% 42% 48% 57%
have not varied
greatly, in terms of Of Off-Shore Jobs Planned (<50) N/A 36% 41% 27% 45%
both inclusion and
weighting. There
have only been a few exceptions to the top 10, with eight of the factors always included: highwayaccessibility, labor
costs, availability of skilled labor, state and local incentives, corporate tax rate, tax exemptions, occupancy and construction costs, and energy availability and costs. Available land and proximity to market were mentioned three times.
Environmentalregulations was included twice, as was availabilityoftelecomservices. This factor was changed to availability of high-speed Internetaccess, and that was included three times as well. Low-union profile was mentioned once.
On a specific level, although the survey responses were submitted before the
financial markets meltdown, they were completed during a time when the equity
and credit markets were showing strong signs of economic adjustment. With this
in mind, we were curious to see if this year’s corporate responses would be telltale,
in terms of corporate attitude toward business growth and priorities. Of particular
note, we looked for indications of changes in the respondents’ views on projected
business expansion and contraction, capital investment planning, and short-term
vs. long-term planning emphasis.
Comparative responses between 2007 and 2008 indicate an upswing in projected new job and facility creation. And although additional offshore locations are planned, 96 percent of those responding stated that they
would not be increasing or decreasing moves in either direction — on- or offshore.
Additionally, 68 percent of the respondents indicated that the tightening of the credit markets is not affecting
their facility plans. This is further supported by the reasons for decreasing the number of facilities; 100 percent of
those doing so said it was for consolidation, and 56 percent pointed to a need to lower costs, but only 39 percent
indicated a decrease in product sales. These findings clearly indicate the current business turmoil has not found its
way into this survey response — next year’s survey should be extremely interesting.
by
Les J. Cranmer,
SENIOR MANAGING DIRECTOR, AND
Art M. Wegfahrt,
CORPORATE MANAGING DIRECTOR,
Studley, Inc.
Ranking
1.
2.
3.
4.
5.
6.
7.
8.
2003
incentives
labor costs
skilled labor
highway
access
occupancy/
construction
tax
exemptions
corporate tax rate
energy
proximity to market
available land
2004
labor costs
highway access
skilled labor
incentives
energy
corporate tax rate
occupancy/
construction
tax exemptions
telecom services
environmental/
Internet access (tie)
2005
highway access
labor costs
skilled labor
incentives
Internet access
corporate tax rate
occupancy/
construction
tax exemptions
proximity to market
energy
2006
labor costs
highway access
corporate tax rate
incentives
telecom services
tax exemptions
occupancy/
construction
skilled labor
energy
2007
highway access
labor costs
energy
skilled labor
occupancy/
construction
available land
corporate tax rate
incentives
environmental
tax exemptions/
proximity to markets (tie)
2008
highway access
labor costs
occupancy/
construction
tax exemptions
energy
skilled labor
incentives
corporate tax rate
low union profile
available land
