Today’s site selection market looks very different than it did a year ago. Activity remains strong, but confidence is uneven: a recent survey of Guild Members found that 17% feel less optimistic in today’s market, 52% feel neither more nor less optimistic and 31% feel more optimistic.
At the Guild’s 2026 Fall Forum in Cleveland, DCI’s Robyn Domber moderated a panel with Kim Williams Davis (Williams Davis Consulting), Gray Swoope (VisionFirst Advisors), Carlos Sánchez Pavón (Newmark) and Courtney Dunbar (Burns & McDonnell), unpacking what’s driving that split and what it means for the newly released 2026 State of Site Selection report.
Below, we break down the biggest site selection trends shaping 2026, the factors shaping today’s location strategy decisions and the strategies EDOs need to attract more projects in today’s competitive landscape.
What Are the Biggest Site Selection Trends for 2026?
The biggest site selection trends for 2026 are the dominance of data center and power-intensive projects, a widening gap between project announcements and groundbreakings, and a persistent shortfall in realized foreign direct investment. Data centers lead site selection activity at 67%, followed by aerospace & defense (44%), advanced manufacturing (38%) and energy (35%), according to the Guild’s 2026 State of Site Selection report. A new manufacturing facility or data center often includes rigorous site selection criteria, weighing a location’s ability to meet environmental regulations, zoning requirements, labor costs and other factors. DCI’s Senior Vice President of Research Robyn Domber, who moderated the Guild’s Fall Forum panel, noted that more traditional bellwether sectors such as consumer goods, electronics and automotive have become comparatively inactive, reflecting a wait-and-see posture on high-stakes, long-term investment.
That activity hasn’t translated into groundbreakings at the same pace. 35% of Guild Members report that fewer announced projects are ultimately breaking ground compared to a year ago. Gray Swoope, president and CEO of VisionFirst Advisors, attributed this to rising capital and construction costs pushing marginal projects onto the shelf as financing structures shift. Swoope pointed to Goldman Sachs research showing roughly $765 billion in artificial intelligence infrastructure capital investment in the U.S. in 2026, with debt financing playing a growing role in funding the buildout. Courtney Dunbar, director of Burns & McDonnell’s site selection consulting practice, connected this to a broader shift in operational efficiency: a tightening labor market is pushing manufacturers toward automation, which increases, not decreases, infrastructure demand per project.
Foreign direct investment tells a similar story. The 2026 State of Site Selection report found a 24-percentage-point gap between expected and realized FDI, with 63% of consultants anticipating a moderate-to-significant increase a year ago, but only 39% reporting that level of investment today. Carlos Sánchez Pavón, managing director of Global Strategy at Newmark, said this reflects a durable shift toward protectionism rather than a temporary dip, predicting the trend will hold for the next 10 to 15 years. Kim Williams Davis, director of Williams Davis Consulting, added that much of this FDI is now arriving via M&A and risk-mitigation strategy rather than greenfield investment.
What Factors Are Impacting Site Selection Decisions This Year?
The top factors impacting site selection decisions in 2026 are electric power availability, workforce and labor availability, geopolitics, public opinion toward economic development and site readiness. Electric power availability ranks highest at 79%, reflecting how central energy infrastructure has become to the site selection process for power-intensive sectors like data centers. Workforce and labor availability and geopolitics tie at 50%. Public opinion toward economic development and site readiness tie at 46%, and Domber noted public opinion has grown significantly as a factor compared to a year ago, a trend she expects to continue.
What Site Selection Strategy Should Economic Developers Use to Attract More Projects?
Armed with a clear understanding of what site selectors need now, economic developers can focus on the controllables throughout the site selection process. The goal is not just to attract more projects, but to attract the right ones. Panelists recommended four moves: narrowing to fewer, sharper target industries; tracking KPIs beyond project announcements; fixing site readiness before marketing sites as ready; and, for smaller communities, leaning on partners rather than a bigger budget.
1. Narrow to Fewer, Sharper Target Industries
69% of Guild Members report that communities should sharpen their focus to no more than four target industries. By doing so, they become better able to anticipate the business goals and needs of expanding companies.
Dunbar also recommended that economic developers conduct due diligence on site and regional infrastructure development, ensuring available commercial real estate is sufficient for their target industries, with demographic data, labor costs, zoning requirements, and state and local taxes and government incentives readily available.
2. Track and Leverage KPIs Beyond Groundbreakings
Building public understanding of a business expansion is crucial for community support and buy-in. Williams Davis recommended highlighting a community’s site and infrastructure investment preparation, Business Retention & Expansion (BRE) visit volume, and technical/vocational training enrollment as leading indicators. Swoope added that payroll impact and disposable income effects are an underused way to communicate value to residents, not just prospects.
3. Fix Site Readiness Before Marketing
Site readiness is a critical part of any regional economic development strategy. Everything from undelineated wetlands to unverified rail service to unclear permitting processes deserves careful attention before a site is marketed as ready. Dunbar’s recommendation: prioritize a small number of sites and take them to full readiness rather than spreading effort thin — “four quarters is better than 100 pennies.”
4. Leverage Partners, Not Just a Budget
For smaller communities, local and regional partnerships are critical. In response to an audience question about competing without a large marketing budget, the panel agreed that regional and state partners, along with utility providers, are invaluable resources for marketing sites even on a tight budget.
The Bottom Line for EDOs in 2026
No matter the size of your community, site selectors have become more deliberate about new expansions. Today’s winning EDOs are proactively narrowing their focus, broadening their KPIs, fixing site readiness gaps and leaning on the right partners to compete, with or without a large budget.
Download the full 2026 State of Site Selection report to learn more about the site selection trends shaping location decisions and how economic developers can put these strategies into practice.