A new survey conducted by the Site Selectors Guild, the only association of the world’s professional site selection consultants, indicates that the next wave of location strategy is here. Amid the heightened frequency of corporations’ multi-billion-dollar facility investments known as “megaprojects,” there is a clear domino effect of “transformational projects,” or capital expenditures in secondary markets that stimulate outsized job creation, housing, retail, and other activity compared to the market’s historical record of economic development.
Most survey respondents, comprised of 60 Guild members who lead location strategy for companies around the world, said three factors that have influenced the increase of transformational projects include federal policy, particularly the signing of the Biden Administration’s CHIPS + Science Act and the European Commission’s Green Deal Industrial Plan; geopolitics that have influenced reshoring; and consumer trends that suggest a desire for more sustainable products, such as electric vehicles (EVs). As a result, new emerging economic hubs are attracting suppliers and smaller scale investments and redefining local economies.
The top industries for transformational projects include EV manufacturing, semiconductor manufacturing and clean energy. CelLink, for example, manufactures circuits used in electric vehicles and battery storage units. The company built a $130 million facility in Georgetown, Texas, just north of Austin. Georgetown’s population is under 100,000, and CelLink’s new factory will create 2,000 new jobs, making it the city’s largest private-sector employer.
“While megaprojects deserve their hype, communities shouldn’t underestimate the impact of subsequent transformational projects, such as suppliers and OEMs, because these capital investments are bringing economic opportunity to their respective surroundings,” said Larry Gigerich, founder and executive managing director of Ginovus and board chair of the Site Selectors Guild.
Global transformational projects are putting secondary countries on the map for site selectors. Nokian Tyres recently broke ground on the first zero-CO2 emission tire factory in Oradea, Romania. Although one of Europe’s poorest countries, Oradea is historically a European transportation hub and will gain 500 jobs from Nokian Tyres’ 650-million-euro investment. Meanwhile, semiconductor production shifting from China to India is drawing attention. Due to the country’s large population and maturing economy, India is setting itself up to be the next place for investment. For instance, Taiwanese technology manufacturer Foxconn is building a $500 million factory creating 25,000 jobs in Telangana, India where the population exceeds 35 million.
About the Site Selectors Guild
The Site Selectors Guild is the only association of the world’s foremost professional site selection consultants. Guild members provide location strategy to corporations across the globe and for every industry, sector, and function. Founded in 2010, the Site Selectors Guild is dedicated to advancing the profession of international corporate site selection by promoting integrity, objectivity, and professional development. Members are peer-nominated, vetted, and must demonstrate significant professional location advisory experience. In 2022 alone, Guild members facilitated the committed or announced creation of approximately 120,000 jobs and $268 billion in capital investment by corporate clients, which required location analysis across 81 countries. Guild membership is the highest standard in the site selection industry.
For more information, visit siteselectorsguild.com or follow @siteselectguild on Twitter.
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