![Page 1: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/1.jpg)
Site Selection After COVID 19:Predictions From The Experts
April 21, 2020 1
Research Conducted Week of April 13, 2020, in Partnership with Development Counsellors International
![Page 2: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/2.jpg)
2
Our hope is that this new research will help corporate clients and economic development organizations weather this economic calamity.
Jay Garner, Site Selectors Guild board chair and president of Garner Economics LLC
![Page 3: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/3.jpg)
3
This survey gives us a sense for what site selectors are seeing from their corporate clients, and a glimpse into what we might expect coming out of this crisis.
Rick Weddle, president and CEO of the Site Selectors Guild
![Page 4: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/4.jpg)
In the past three years alone, Guild members facilitated the announced creation of approximately 165,000 jobs and $90 billion in announced capital investment.
4
![Page 5: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/5.jpg)
Overview
• Summary of Guild Member Survey on COVID-19 (pg. 6)• Chris Lloyd, McGuireWoods Consulting
• Changes Coming to Global Supply Chain Strategy (pg. 21)• Michelle Comerford, Biggins Lacy Shapiro & Company
• Corporate Real Estate: How Space Utilization Will Change (pg. 26) • Gregg Wassmansdorf, Newmark Knight Frank
5
![Page 6: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/6.jpg)
Summary of Guild Member Surveyon COVID-19
6
CHRIS LLOYD
McGuireWoods Consulting
![Page 7: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/7.jpg)
We should absolutely avoid social distancing - at least in the literal sense of the word. Physical distancing is all-required. Maintaining social contacts in these troublesome times is critical to strengthening interpersonal links and trust.”
7
![Page 8: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/8.jpg)
We are busy! And are still counting on our EDO friends to assist us with our project inquiries currently when we reach out. We will all cut each other some slack and give grace…”
8
![Page 9: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/9.jpg)
Current Environment
0%
0%
3%
45%
52%
Companies are cancelling site selectionprojects
Companies are consolidating facilities ratherthan expanding or adding new ones
Other
Companies are moving forward with siteselection projects
Companies are pausing site selection projects
9
![Page 10: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/10.jpg)
Predicted Return of Activity
0% 0%
55%
45%
10
![Page 11: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/11.jpg)
Life Sciences, Logistics and Advanced Manufacturing Emerge As “Hot” Industries in A Post-COVID World”
11
![Page 12: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/12.jpg)
Most Active Industries Post COVID-19
0%
0%
0%
3%
3%
3%
16%
19%
39%
48%
68%
Aerospace
Finance, Insurance and Real Estate
Professional Services
Automotive
Energy / Clean Tech
Telecommunications
Food/Beverage Processing
Software & IT
Advanced Manufacturing
Transportation and Logistics
Biotech / Life Sciences
12
![Page 13: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/13.jpg)
Most Active Functions Post COVID-19
6%
9%
9%
13%
16%
69%
69%
Other
Headquarters
Technical Support
R & D
Back office/ support operations (i.e. customer service,accounting, etc.)
Production
Warehousing
13
![Page 14: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/14.jpg)
Recommended Priorities for EDOs
14* “Other” responses include workforce retention/connecting unemployed workers to jobs; revisiting target industries; communication on new initiatives and restoring international suppliers
2.9
3.7
3.8
4.7
5.0
Business attraction (focusing on company expansionand new business opportunities)
Product improvement (investing in improvementsthat will make your community more attractive to
potential investors)
Workforce development/Talent attraction (building askilled workforce that meets the needs of your
corporate community)
Other*
Business retention (helping your existing companiesweather the storm)
![Page 15: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/15.jpg)
De-risking The Supply Chain: How COVID-19 Will Force A Shift In Global Distribution…”
15
![Page 16: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/16.jpg)
Impact On Global Supply Chain Strategies
0%3%
16%
29%
52%
1 (noimpact)
2 3 4 5 (majorimpact)
MEAN: 4.3
16
![Page 17: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/17.jpg)
Impact On Global Supply Chain Strategies
“Companies have been focused for decades on lowest cost scenarios; growth in China and SE Asia is a great example. Now, the quest for lowest cost will become more balanced with reduction in risk.”
“The trend toward regionalization of supply chains was well underway before COVID-19…it will now accelerate. So will China plus 1 or 2 and reshoring to North America. Companies will carry more safety stock and extend their supplier networks.”
17
![Page 18: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/18.jpg)
After The “Work From Home Experiment”…”
18
![Page 19: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/19.jpg)
Long Term Impact of Current Remote Workers
0%3%
19%
38%34%
1 (noimpact)
2 3 4 5 (majorimpact)
MEAN: 4.0
19
![Page 20: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/20.jpg)
What Do Site Selectors Want to Hear?
• 31% - Updates on Market Conditions (i.e., announcements/closures)
• 27% - New Approaches/Resources to Support Major Employers
during COVID-19
• 19% - Updates on Incentives (i.e. changes in compliance, new etc.)
• 15% - Information on sites, buildings and infrastructure
• 15% - Training (re-skilling) and labor force information
20
![Page 21: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/21.jpg)
Changes Coming to Global SupplyChain Strategy
21
MICHELLE COMERFORD
Biggins Lacy Shapiro & Company
![Page 22: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/22.jpg)
Coronavirus Disruption
22
![Page 23: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/23.jpg)
Acceleration of Trend*
23
ASIA
Wages
Transportation
Cost Advantages
Local Demand
Tariffs
United States
✓ LESS RISK
✓ Faster Service
✓ Reduced Inventory
✓ Speed Development
*For products destined for U.S. market
![Page 24: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/24.jpg)
Changing Strategies
➢ “Local for Local”• Regionalized manufacturing strategy
➢ Smaller plants• Capacity based on market size to be served
➢ Strategic commodities closer to home• Minimize risk exposure; government strategies/support
➢ Increased automation/AI• Less reliance on low cost manual labor
➢ Short-term vs Long-term• Run on Distribution/WH space in short-term for increased inventory
24
![Page 25: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/25.jpg)
How to Prepare
1. WORKFORCE TRAINING• Automated plants require more skilled workers
2. Ready-To-Go Sites and Buildings• Project timelines will become even shorter
3. Flexible Incentive Support Programs• Ability to support specific project needs/business case gaps
4. Supply Chain Gap Fulfillment• Match existing manufacturing capabilities with needs for suppliers
25
![Page 26: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/26.jpg)
Corporate Real Estate: How SpaceUtilization Will Change
26
GREGG WASSMANSDORF
Newmark Knight Frank –
Global Strategy
![Page 27: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/27.jpg)
CRE’s new workplace
• COVID-19 is a catalyst and accelerator
• CRE solutions are only beginning to emerge
• Key changes to business operations and CRE• New Hygiene Protocols
• Remote Working
• Physical Distancing
• Business Continuity
27
![Page 28: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/28.jpg)
28
NKF Workplace Strategy & Human Experience
CRE Change Elements
![Page 29: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/29.jpg)
29
NKF Workplace Strategy & Human Experience
![Page 30: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/30.jpg)
30
NKF Workplace Strategy & Human Experience
![Page 31: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/31.jpg)
31
NKF Workplace Strategy & Human Experience
![Page 32: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/32.jpg)
32
NKF Workplace Strategy & Human Experience
![Page 33: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/33.jpg)
CRE Solutions Evolution
• Workplace attitudes, behaviors, and governance will shift over time
• CRE strategies must address:
“inside” (how) + “outside” (where)
• Companies that pilot and adopt agile portfolio, workplace, and workforce strategies are likely to be better positioned
33
• Physical design for agility and “safety”
• Technology deployment
• Social / behavioral expectations & training
• Metropolitan distribution & preferences
• Downtowns vs. Suburbs
• Office vs. Remote working
![Page 34: Site Selection After COVID 19: Predictions From The …...Site Selection After COVID 19: Predictions From The Experts April 21, 2020 1 Research Conducted Week of April 13, 2020, in](https://reader034.vdocument.in/reader034/viewer/2022050216/5f6202abe576fc762254f62e/html5/thumbnails/34.jpg)
COVID-19 Perspectives
www.ngkf.com/covid-19
34