Of those consultants who claimed they do perform location
studies for their clients, nearly half said their clients had already
narrowed down the geographic area of search before calling
them in; but 25 percent also said their clients expect the consultants to make the location decision for them (Chart C).
The majority of the respondents to our Consultants
Survey ( 63 percent) are working for smaller companies in
terms of employment numbers (fewer than 500 employees).
More than half have worked with both investor-owned and
privately held firms (Charts D and E).
Do Their Clients Have New Facilities Plans?
Once again I must note that this survey was conducted in
late summer 2008; therefore, the responses might not reflect
the events that took place during the year’s final quarter.
Nonetheless, the respondents to our 2008 Consultants Survey were about equally divided when asked if the downturn
in the U.S. economy had affected their clients’ facility plans:
50 percent of the responding consultants said their clients’
new facility plans had been put on hold, with 28 percent
saying their clients were closing/consolidating facilities.
However, 47 percent of the responding consultants said their
clients still planned to open new facilities (Chart F).
Of those respondents who claimed their clients expected
to open new facilities, a third said they planned to do so
within one year, and more than half said their clients had
two-year new facility plans (Chart G). Only 11 percent said
their clients had longer-range new facility plans (compared
to the 20 percent of the Corporate Survey respondents with
plans three or more years out). This might be an indication
of the fact that the consultants’ services are not utilized until
their clients’ plans are more firmly in place.
Nearly two-thirds of the respondents to our 2008 Consultants Survey said their clients who have new facility plans
expect to open only one new facility. Just 13 percent said
their clients had plans for three or more new facilities (Chart
H). Interestingly, 28 percent of the Corporate Survey
respondents with new facility plans expect to open three or
more new facilities within the next five years.
Whereas nearly half of the 2008 Corporate Survey
respondents’ new facilities are planned as manufacturing
establishments, only 27 percent of the consultants’ clients’
new facilities are expected to house manufacturing opera-
tions (Chart I). Nearly half ( 47 percent) of the responding
consultants’ clients’ new facilities are expected to be headquarters, R&D, back office/call center, and other types of
Chart A
Percentage of responding consultants who
have worked on location/expansion projects
in following industries:
• Food/Beverages
• Apparel
• Wood Products/Furniture
• Paper/Printing
• Chemicals
• Plastics & Rubber
• Primary Metals
• Fabricated Metals
• Machinery
• Computers/Peripheral Products
• Electrical Eqpmt. & Components
• Transp. Eqpmt. (incl. Automotive)
• Medical & Scientific Instr.
• Pharmaceuticals
38%
7%
11%
10%
22%
19%
16%
23%
18%
9%
13%
25%
16%
23%
• Warehouse/Distribution
• Financial Services/Ins.
• Information Technology
• Other
47%
26%
21%
26%
Chart B
Percentage of respondents providing following services to their clients:
• Location studies
• Incentives negotiations
• Site selection decision
• Construction
• Other
37%
31%
52%
8%
8%