(especially over the period preceding this survey) were
impacting their clients’ facility operations and also affecting their supply and distribution network decisions
(Chart W).
Increasing fuel costs are probably responsible for the
heightened importance given to railroad service. Although
this factor was only ranked 23rd by the responding consultants, it showed the largest increase in importance over
last year’s consultants’ ratings; the rating of railroad service
rose an astonishing 42 percent, with its combined rating in
importance increasing from 35.1 percent to 50 percent.
Remember that nearly half of the responding consultants
said they have helped to site warehouse/distribution facilities; they and their clients have realized the energy costs
savings that can be achieved through the use of railroad
service over trucking.
Closely related to energy issues are environmental
concerns. All the talk about “green” or sustainable development should be reflected in the consultants’ ranking of
the environmental regulations factor. However, this factor
only bumped up slightly in importance to a 71.6 percent
combined rating, and its 17th place ranking held steady.
Nonetheless, when asked if environmental concerns were
more important to their clients now than in the past, 72
percent of the respondents to our 2008 Consultants Survey said, “Yes” (Chart X). In response to this, 100 percent
said their clients were undertaking energy-saving facility
modifications, and 70 percent said their clients were also
recycling or re-using waste products from their operations (Chart Y). However, unfortunately, nearly two
thirds of the respondents said the communities they have
worked with are not offering any specific incentives for
green initiatives.
Occupancy and construction costs moved up to the sixth
spot in the consultants’ rankings this year, with an 87.1
percent combined rating, from 11th place in 2007, with an
• China 35%
• India 16%
• Vietnam 9%
• Singapore 13%
• Malaysia 15%
• Other Asian nation 13%
Chart M
Types of new foreign facilities to be opened by consultants’ clients
(as of total new foreign projects):
• Manufacturing
• Warehouse/Distribution
• Headquarters
• R&D
• Back Office/Call Center
• Other
45%
17%
2%
7%
21%
7%
Chart N
Have you seen an increase in the number of companies establishing
foreign facilities as opposed to domestic ones over the last year?
• Yes 29%
• No 71%
Chart O
Have any of your clients relocated a facility back to the
U.S. from a foreign location?
• Yes 35%
• No 65%
Chart P
Percentage of respondents that have encountered or foresee
problems when helping clients to locate overseas:
• Legal problems 22%
• Regulatory problems 29%
• Skilled labor shortage 17%
• Land not available 9%
• Utility infrastructure 25%
problems
• Transportation infrastructure 14%
problems
• Social/cultural issues 29%
