PDF: 21st Annual Corporate Survey Complete Results - Area ...
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FIGURE 16<br />
Total number of new jobs to be created at new foreign facilities:<br />
Last year, the respondents to our <strong>Corporate</strong> <strong>Survey</strong><br />
said they were placing 48 percent of the facilities they<br />
FIGURE 15<br />
Types of new foreign facilities to be opened:<br />
(as percentage of total projects)<br />
planned for Asia in China (PRC). That number is up to 59<br />
percent. Another fifth of the Asian facilities slated by the<br />
2006 <strong>Corporate</strong> <strong>Survey</strong> respondents will go to India,<br />
and another 22 percent to other Asian nations, including<br />
Japan, Malaysia, South Korea, Thailand, and Vietnam<br />
(Figure 18).<br />
Manufacturing — 63%<br />
Warehouse/Distribution — 19%<br />
Headquarters — 2%<br />
R&D — 9%<br />
Other — 7%<br />
Unfortunately, operating in Asia has not gotten any<br />
easier for those planning new facilities in that part of the<br />
world. More than half of the respondents who expect to<br />
open up new Asian facilities say they have already<br />
encountered or anticipate problems operating in the<br />
Asian social/culture milieu. Nearly half say they also<br />
expect to grapple with regulatory problems. A fifth also<br />
believe they will face skilled labor shortages and problems<br />
with the transportation infrastructure (Figure 19).<br />
Are They Expanding and/or Relocating?<br />
The percentage of corporate survey respondents<br />
planning an expansion within one year is the same this<br />
year as last — 22 percent. Long-range expansion plans<br />
have also remained consistent at 32 percent (Figure 20).<br />
Nearly 80 percent of the 2006 <strong>Corporate</strong> <strong>Survey</strong><br />
respondents said their companies’ expansions would<br />
create fewer than 100 jobs; and fewer than one-fifth of<br />
the respondents said the expansions are expected to be<br />
mid-size in terms of employment, creating 100–499 jobs<br />
in total (Figure 21).<br />
Relocation activity, however, is showing an uptick: 22<br />
percent of the 2006 <strong>Corporate</strong> <strong>Survey</strong> respondents<br />
expect to relocate a domestic facility within two years,<br />
as compared with only 16 percent making such projections<br />
last year. And twice as many — 14 percent — have<br />
three-year relocation plans this year as last (Figure 22).<br />
Nearly 30 percent of those planning relocations will<br />
do so to be in closer proximity to suppliers and/or markets<br />
served; a fifth need to reduce labor costs; and nearly<br />
20 percent also need to reduce operating/occupancy<br />
costs (Figure 23).<br />
What Are Their Priorities?<br />
Fewer than 20 — 17%<br />
20–49 — 24%<br />
50–99 — 17%<br />
100–499 — 35%<br />
500–999 — 7%<br />
1,000 or more — 0%<br />
In order to find out how our corporate executive<br />
readers make their location decisions, each year the editors<br />
of <strong>Area</strong> Development ask our survey-takers to rate a<br />
series of site selection factors as either “very impor-<br />
Request 217 on Executive Inquiry Card