Location Intelligence Newsletter
Site Selection Group, LLC
Accelerating your business with location analytics, economic incentive management, and corporate real estate solutions.
Site Selection Group is pleased to release the LinkedIn version of our monthly Location Intelligence Newsletter. Let our location strategists help you learn, navigate, and stay informed about the latest site selection trends.
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2025 Forecast: Trends Shaping Site Selection and Corporate Real Estate
by King White
The year 2025 is poised to be pivotal for site selection and corporate real estate, driven by a myriad of factors from economic shifts to technological advancements. Understanding these trends will be crucial for businesses looking to optimize their operational and real estate strategies in a changing landscape.
Key trends influencing 2025
1. Manufacturing Reshoring Accelerates
With an expected rise in manufacturing reshoring, companies are responding to supply chain disruptions and geopolitical concerns by bringing production closer to home. This trend, enhanced by artificial intelligence (AI) and automation, makes domestic production more viable and competitive.
Significant Louisiana Tax Reform
Louisiana is making significant strides to encourage economic growth by becoming more competitive from a tax standpoint. Since Governor Jeff Landry took office in January 2024, there have been several special legislative sessions to create more jobs, increase prosperity, lower taxes, and create sustainable budgets in what has been coined “Louisiana Forward.” As part of those efforts, on December 4, 2024, Governor Landry adopted a tax reform package that will likely improve Louisiana’s state tax ranking among states in the U.S.?
As Site Selection Group mentioned in prior blogs, a state’s tax environment is as important a consideration in the site selection process as economic incentives. In fact, often incentives are justified and utilized to offset adverse tax policies. Louisiana’s new tax reform aims to lower corporate and personal income tax burdens to encourage the creation of more well-paying jobs.
Significant changes to the state’s tax code
Personal income tax
Beginning January 1, 2025, Louisiana will transition to a flat tax structure. Individuals will pay a flat 3% rate on their taxable income. This will represent the second lowest rate in the U.S. of those states that impose an individual income tax.
U.S. Textile Site Selection – The Resurgence of a Legacy Industry
by Rod McCants
The U.S. textile industry has been declining for decades due to extensive offshoring and globalization efforts, however, a revival may now be underway. Rising labor costs overseas, tariffs, supply chain disruptions, a growing consumer preference for sustainability, and innovation in manufacturing are fueling this revival. This marks a key moment for U.S. textile manufacturing as the industry repositions itself as a leader in advanced fabric technology and sustainable textile production.
Site Selection Group, a full-service location advisory, economic incentive, and real estate services firm, is on the front lines of site selection projects for manufacturers. With the increasing demand for advanced materials required by high-tech industries such as automotive, aerospace, and medical technology, we anticipate a change in real estate market dynamics that will likely benefit manufacturers exploring site selection for advanced textile manufacturing.
Key Drivers of the Resurgence
1. Economic Shifts and Policy Support
The U.S. textile industry's comeback started gaining momentum over a decade ago. The Trump Administration’s "America First" policies, particularly tariffs on Chinese goods, provided initial traction. More recently, global supply chain disruptions during the COVID-19 pandemic underscored the risks of over-reliance on offshore production. Increased shipping costs and lead times made domestic manufacturing more appealing for sectors like personal protective equipment (PPE), as demand surged during the pandemic.
The Largest Data Center Projects of 2024
by King White
领英推荐
2024 has been a landmark year for data center development, witnessing substantial investments from both enterprise giants like Meta, Google, and Microsoft, and colocation providers such as Tierpoint, Vantage Data Centers, and Compass Data Centers. As the demand for data processing capacity escalates — driven by advancements in artificial intelligence (AI) and other technologies — the need for strategically located, resource-efficient data centers has never been more critical.
Highlighting major projects in 2024
Site Selection Group monitors data center market activity and has identified some of this year’s top data center projects. These developments, categorized by significant capital expenditures, illustrate a growing trend toward enhancing data infrastructure to support burgeoning digital needs across various sectors. Below is a list of some of the largest announcements of the year ranked by estimated capital investment.
The Potential Impact of New Labor Reforms on Colombia’s Call Center Industry
by King White
Colombia has long been recognized as a strategic nearshore hub for call center operations, hosting some of the largest captive and business process outsourcing companies in the industry such as Teleperformance, Amazon, Sutherland, Concentrix, and Everise. However, proposed labor reforms by President Gustavo Petro are stirring debate about their potential impact on this vital sector.
Overview of proposed labor reforms
The Colombian government under President Petro is pushing for labor reforms that could significantly alter the operational landscape for businesses reliant on labor-intensive practices, such as call centers. Key proposed changes include:
A Look Back at Corporate Headquarters Relocation Trends in 2024
by King White
As companies navigate post-pandemic recovery and shifting economic landscapes, corporate headquarters relocations are increasingly influenced by strategic considerations, including labor markets, tax incentives, and the overall business climate. In 2024, we observed a variety of significant headquarters projects across the United States, each underscoring the critical role of business climate, labor availability and costs, real estate, and economic incentives in these decisions.
Headquarter migration trends
While the migration trend from states like California, Illinois, and New York saw a slight slowdown in 2024, companies continue to evaluate their headquarters locations as they strive to find talent and manage costs. This trend highlights the importance of strategic site selection, which optimizes operational costs and leverages local market advantages. States like Texas, Florida, Georgia, and North Carolina have emerged as winners in attracting many of these projects, thanks to their business-friendly environments that include lower taxes, favorable regulatory climates, and robust economic incentives.
Impact of Potential Tariff and Immigration Policies on Construction Costs
by King White
As we head into 2025, the U.S. construction industry faces significant uncertainties that could influence corporate real estate decisions and capital-intensive site selection projects. Key among these are the implications of President-elect Donald Trump’s positions on tariffs and immigration, which are poised to negatively affect both the cost of construction materials and the availability of labor.
Economic policies and their impact
The introduction of potential tariffs and changes in immigration policy could lead to increased costs for construction materials and a tighter labor market. Such changes would directly impact the cost dynamics of building new facilities and could lead to delays or increased expenses for companies looking to expand or relocate.
Site Selection Group is a leading provider of global location advisory, economic incentives, and corporate real estate services. Our purpose is to deliver conflict-free solutions that enable our clients to make a positive impact in their communities. Our mission is to connect companies to the optimal locations through our integrated service offerings which include: Location Advisory Consulting, Economic Incentive Services, Corporate Real Estate Services, and Economic Development Consulting.
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