Archive for month: November, 2025

The State of Site Selection: Five Trends Defining 2026 Projects

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As we prepare for 2026, several key trends are shaping the site selection landscape. Companies that understand these shifts will be better positioned to make decisions that support long-term success.

Trend 1: Reshoring Remains Strong

Manufacturers continue to move production closer to U.S. customers to reduce risk and improve supply chain control.

Trend 2: Workforce is the Deciding Factor

Incentives can help, but access to skilled labor remains the most important variable for most projects.

Trend 3: Sustainability is a Priority

Green standards and renewable energy integration are no longer optional. Communities are building programs to support companies that lead in this area.

Trend 4: Incentives Are Becoming More Targeted

States are refining programs to focus on industries such as advanced manufacturing, clean energy, and healthcare.

Trend 5: Competition Among States Intensifies

Communities are investing heavily in infrastructure and incentives to remain competitive in attracting projects.

The Bottom Line

2026 will be a year when thoughtful, data-driven site selection delivers a distinct advantage.

Behind the Numbers: How to Calculate the True Value of Incentives

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When negotiating incentives, it is easy to focus on headline numbers. A 10-year property tax abatement worth millions may sound impressive, but the real question is: what is the actual value to the company?

Key Considerations

  • Net Present Value: A dollar today is worth more than a dollar 10 years from now.
  • Compliance Costs: Reporting and performance obligations can reduce the net benefit.
  • Stacking with Other Incentives: Combining multiple programs may deliver more value than a single large award.
  • Impact on Cash Flow: The timing of benefits matters as much as the total amount.

An Example

A company promised $5 million in abatements over 15 years realized the net present value was closer to $3 million. However, the addition of workforce training and infrastructure support raised the overall benefit to more than $6 million.

The Takeaway

Evaluating incentives requires more than looking at face value. A disciplined financial analysis ensures companies capture the true return on their negotiations.

The New Standard for Green Manufacturing Incentives

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Sustainability is no longer optional. Companies in manufacturing and related sectors are being held to higher standards for energy use, emissions, and environmental impact. Incentive programs have evolved accordingly.

Current Focus Areas

  • Electric vehicle production and infrastructure
  • Renewable energy integration at industrial sites
  • Carbon reduction through advanced processes
  • Recycling and circular economy initiatives

Examples of Support

  • Federal clean energy tax credits
  • State grants for renewable energy adoption
  • Utility rebates for efficiency improvements

Why It Matters

Green incentives reduce upfront costs while helping companies meet regulatory and market expectations. More importantly, they position businesses to attract customers and talent who value sustainability.

Our Perspective

The most successful companies will be those that view sustainability incentives not just as compliance tools but as investments in competitiveness.

Workforce Incentives: The Overlooked Advantage in Location Decisions

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A skilled workforce remains one of the most important drivers of site selection. Yet too often, companies underestimate the value of workforce incentives. These programs not only support hiring but also reduce training costs and improve retention.

Types of Workforce Incentives

  • Customized Training Grants: Funding for job-specific skills programs.
  • On-the-Job Training Subsidies: Wage reimbursements for new hires in training.
  • Partnerships with Technical Schools: Programs that align curricula with employer needs.

Why They Matter

A community’s ability to deliver skilled workers quickly can shorten ramp-up times for new facilities. For companies expanding in competitive industries, workforce incentives may be as valuable as tax savings.

A Case in Point

One manufacturer we supported received more than $1 million in workforce training funds. The result was a well-trained team in place on day one, allowing the facility to meet production targets without delay.

The Bottom Line

Incentives tied to workforce development are not secondary. They are central to the long-term success of a new facility.

Five Points Strategic Advisors

info@fivepointsstrategies.com

711 Navarro St. | Ste 300-103
San Antonio, TX 78205

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