Last fall, Morgan Crapps, Principal at Parker Poe Consulting, spoke at Area Development’s Women in Economic Development Forum about the trends and factors that shaped foreign direct investment in the United States in 2022, and what we’re tracking for 2023. Morgan now shares some of those key trends in Area Development, discussing FDI and new considerations for economic developers and executives alike as we move into the new year. Takeaways include everything from supply chain challenges to global energy prices to geopolitical minefields that are impacting corporate decision-making in the United States.
A few highlights about what foreign companies should consider when investing in the U.S. in 2023 included:
Sites and buildings: Ready sites and buildings are scarcer than ever before — particularly sizable sites. Taking a responsible approach to site selection and performing necessary due diligence from scratch can take a lot of time — time that many companies don’t have or haven’t allocated when beginning project planning. With a “buyer beware” approach in the United States when purchasing real estate, it’s important for companies to consider the small (and shrinking) pool of sites and buildings with all due diligence completed, particularly where there are specific or challenging site requirements.
Government engagement: Many companies fear the regulatory environment in the U.S. Thoughtful engagement with federal, state, and local governments is a key component to the successful execution of a project. By strategically collaborating with all levels of government and working hand in hand, companies can expect more seamless permitting and incentive opportunities. Moreover, by working with professionals who have a solid understanding of a changing landscape related to business and tax filings, necessary permits, and state and federal laws, companies can avoid many pitfalls upfront.
Labor challenges: Post-COVID, many communities around the world are struggling to build a ready workforce for projects. This is especially true in the U.S. where many regions have significantly more job openings than employees to fill them. Even companies with relatively small hiring requirements must consider labor markets and prevailing wages in their region, as companies are competing heavily to recruit and retain manufacturing employees.
You can read the full article with Morgan’s insights here:
What in the World? FDI Trends to Watch in 2023
Related Articles: Morgan Crapps Speaks About Foreign Direct Investment at Area Development’s 2022 Women in Economic Development Forum in Chicago, IL
Parker Poe Consulting is a corporate site selection and economic incentives consulting firm. The Parker Poe Consulting team provides site selection services to find data-driven solutions for clients who are expanding their footprints and considering new capital investments and job creation. Parker Poe Consulting also provides economic incentives consulting services to growing companies, helping clients navigate and negotiate incentives for economic development projects. From global conglomerates to family-owned businesses, Parker Poe Consulting positions companies to make informed project decisions that will maximize operational effectiveness while reducing costs.