Despite an uncertain operating environment and continuing concerns about the availability of skilled labor, plans for new and expanded facilities are still on the horizon, according to the results of Area Development’s 33rd Annual Corporate Survey and 15th Annual Consultants Survey.

About 40 percent of the 118 Corporate Survey respondents say they plan to open new facilities within the next five years, with around the same percentage saying the TCJA will affect future plans. However, only 29 percent say the trade war with China will affect their future plans.

In contrast, of the 65 consultant respondents, more than half say their clients’ future facility plans will be affected by the TCJA, and more than 70 percent believe the trade war with China, as well as new tariffs on aluminum and steel, will affect their clients’ future facility plans.

Availability of skilled labor  is ranked as the #1 site selection factor by the Corporate Survey respondents, followed by labor costs and highway accessibility. The respondents to our Consultants Survey also rank availability of skilled labor as the #1 factor,in a three-way tie with proximity to major markets and highway accessibility.

As in past years, southern regions will garner the largest share of all the respondents’ planned new domestic facilities. Interestingly, Asia will only receive 13 percent of the corporate respondents’ new foreign establishments with a quarter going to Western Europe and a fifth to Mexico. The consultants’ clients are planning 19 percent of their projects for Asia, 17 percent for Western Europe, and 15 percent each for Canada and for Mexico.