35th Annual Survey of Corporate Executives Commentary: Change in Site Selection Priorities and Plans Over the Short and Long Term
19 May 2021
The Corporate Survey results reflect the current situation. The pandemic has not changed the corporate real estate strategy of many companies (confirmed by 76 percent) to go forward with domestic and international investments, but it has slowed it down. For example, travel restrictions still limit the possibility of foreign companies to visit possible sites in the U.S. Nevertheless, several new projects have started including FDI ones. As the survey shows, reshoring, near-shoring, and offshoring seem not to be happening. Companies are also tending to do more geographical diversification of their plants and expanding existing facilities. We are already seeing large investments again starting in China, Mexico, as well as in the U.S.
New investments are currently mainly been done for manufacturing facilities and warehouses (representing 52 percent of the domestic total and 41 percent of the foreign total of planned new plants). Due to the electrification of vehicles, the auto industry is seeing large manufacturing projects. President Biden’s plan to make all government vehicles electric — more than 645,000 cars and trucks — would push production of EVs even more.