Archive for category: Insights

Site Selection for Supply Chain Resilience

,

Supply chain disruptions have become a defining challenge of the past five years. Companies are rethinking location strategies to ensure resilience in the face of uncertainty.

The Risks of a Fragile Supply Chain

Events from global conflicts to natural disasters have shown how quickly supply chains can be disrupted. Companies dependent on a single port, highway, or region risk major losses when problems arise.

Keys to Building Resilience Through Site Selection

  1. Diversified Access

    Locations with multiple transportation options, from interstates to rail and ports, reduce reliance on a single route.

  2. Proximity to Customers

    Shorter delivery times reduce exposure to bottlenecks.

  3. Local Supplier Ecosystems

    Communities with established supplier networks provide redundancy.

  4. Infrastructure Reliability

    Strong utilities and broadband access support continuity during crises.

A Balanced Strategy

Cost remains important, but resilience carries its own value. Companies that build redundancy into their site selection decisions are better positioned to weather disruptions and protect their customers.

Healthcare and Behavioral Health Projects: A New Era for NMTC

,

The healthcare sector, particularly behavioral health, has emerged as one of the strongest fits for the New Markets Tax Credit (NMTC) program. Communities across the country face shortages of care, and NMTC financing is helping fill the gap.

Why Healthcare Projects Are Strong Candidates

Healthcare facilities in underserved areas align closely with NMTC’s mission of community impact. They create jobs, expand essential services, and improve quality of life. Behavioral health facilities in particular are often located in low-income census tracts, making them prime candidates.

Recent Trends

  • Increased demand for outpatient behavioral health services
  • Stronger partnerships between healthcare providers and community development entities
  • Greater emphasis on facilities that integrate behavioral and physical health care

The Financial Advantage

With NMTC, projects can secure below-market financing that covers up to 20 percent of total costs at closing. For facilities that often struggle with thin operating margins, this support can be decisive.

Our Perspective

Healthcare organizations considering new facilities should explore NMTC early. The combination of community need and program alignment makes these projects some of the most competitive and impactful in the allocation process.

Why Mid-Sized Manufacturers Are Winning Big on Incentives

,

When people think about economic development incentives, they often picture billion-dollar projects from Fortune 500 companies. The truth is that mid-sized manufacturers are increasingly the ones capturing some of the most impactful packages.

Why Mid-Sized Companies Have an Edge

Large corporations certainly attract attention, but they also come with long timelines and complex negotiations. Mid-sized manufacturers, by contrast, can often move faster and deliver tangible benefits to communities more quickly. That agility is attractive to economic developers.

What Communities Value

Communities are eager to support companies that bring:

  • Steady job creation at sustainable wage levels
  • Local supply chain partnerships
  • Projects that strengthen regional economies without overburdening infrastructure

Examples of Support

Mid-sized firms frequently qualify for:

  • Property tax abatements that cover a meaningful portion of project costs
  • State-funded workforce training tailored to their needs
  • Infrastructure investments to support production growth

The Takeaway

Mid-sized manufacturers should not assume incentives are only for the biggest players. With the right strategy, they can negotiate packages that reduce costs and position their businesses for long-term success.

The End of Texas Chapter 313: What the JETI Program Means for Projects

For years, Chapter 313 provided Texas with one of the most powerful incentive tools in the country. Its expiration left many companies wondering how the state would remain competitive. Today, the Jobs, Energy, Technology, and Innovation (JETI) program is filling that role, but with important differences.

How JETI Differs from Chapter 313

Unlike Chapter 313, JETI is more targeted. It focuses on industries such as clean energy, advanced manufacturing, and technology, requiring companies to demonstrate both job creation and capital investment.

Opportunities for Companies

JETI awards can still provide significant tax savings, but the process is more competitive. Companies that align their projects with state priorities have the best chance of success.

Challenges to Be Aware Of

  • Higher compliance requirements
  • More detailed application processes
  • Limited annual caps compared to Chapter 313

A Strategic Approach

Companies pursuing JETI must be deliberate in site planning and community engagement. At Five Points, we help businesses prepare applications that demonstrate clear economic impact and maximize eligibility under the new program.

Manufacturing Reshoring: How to Choose the Right U.S. Location

,

Reshoring continues to gain momentum as manufacturers bring operations closer to U.S. customers. The decision to move production back, however, is only the first step. Choosing the right location is what determines long-term success.

The Drivers Behind Reshoring

Rising overseas labor costs, supply chain risks, and geopolitical uncertainty have made reshoring attractive. At the same time, U.S. incentives and infrastructure investments are creating strong opportunities for manufacturers.

Key Location Factors

  1. Labor Force

    A skilled workforce is non-negotiable. Communities with technical schools and apprenticeship programs can give manufacturers a reliable pipeline.

  2. Logistics Access

    Proximity to customers, suppliers, and intermodal hubs keeps transportation costs under control.

  3. Energy and Utilities

    Reliability and cost of power, water, and broadband often decide between one site and another.

  4. Incentives and Support

    States are competing aggressively for reshoring projects with generous incentive packages.

Long-Term Perspective

A reshored facility should not only solve today’s problems but also position the company for growth. A balanced approach that weighs labor, logistics, and incentives together is the surest path forward.

The Biggest Mistakes Companies Make in Incentives Negotiations

,

When companies pursue economic development incentives, the negotiations often determine whether a project captures meaningful value or leaves money on the table. Too often, businesses fall into predictable traps that weaken their position.

Mistake 1: Engaging Too Late

Many leadership teams wait until a site has been chosen before discussing incentives. By then, the leverage is gone. Incentive packages are strongest when communities are still competing for the project.

Mistake 2: Focusing Only on Taxes

Property tax abatements are important, but they are not the whole story. Workforce training, infrastructure improvements, and permitting support can be just as valuable.

Mistake 3: Underestimating the Timeframe

Communities require due diligence, public hearings, and formal approvals. Companies that assume a quick turnaround risk delaying their projects.

Mistake 4: Overlooking Compliance Requirements

Incentives come with commitments. Job creation numbers, capital investment thresholds, and reporting obligations must be carefully managed. Failure to deliver can lead to clawbacks.

How to Avoid These Pitfalls

Successful negotiations require preparation, timing, and a clear understanding of the community’s goals. At Five Points, we guide companies through the process so they can capture the full range of benefits without unintended surprises.

NMTC 101: What Companies Need to Know for 2026 Allocations

,

The New Markets Tax Credit (NMTC) program remains one of the most powerful financing tools available for projects in underserved areas. With permanency now established, companies that want to benefit from the program in 2026 should begin preparing today.

What Is NMTC?

The NMTC program provides federal tax credits to investors who make qualified equity investments in low-income communities. For companies, this translates into below-market financing that can cover up to 20 percent of project costs at closing.

Who Qualifies?

To be eligible, a project must be located in a qualified census tract and typically involve job creation, community services, or other significant impacts. Manufacturing, healthcare, education, and community facilities are often among the strongest candidates.

Why Plan Now for 2026?

Securing NMTC allocation is competitive. Community Development Entities (CDEs) that distribute credits review projects months in advance. Companies that delay preparation until 2026 may find themselves behind others in line.

Steps to Take Now

  1. Identify Eligible Sites

    Confirm whether your project location qualifies.

  2. Develop a Financing Strategy

    Understand how NMTC would integrate with other funding sources.

  3. Engage with CDEs Early

    Build relationships that strengthen your application.

  4. Work with Experienced Advisors

    The complexity of NMTC transactions requires expertise.

The Takeaway

If your company is planning a project of $10 million or more in an eligible area, the time to begin the NMTC process is now. At Five Points, we guide clients through every stage, from confirming eligibility to closing transactions.

Incentives Beyond Taxes: Hidden Benefits Companies Overlook

,

When companies think about economic development incentives, property tax abatements or state tax credits usually come to mind. Those tools are important, but they represent only part of the picture. Some of the most impactful benefits are not tied to taxes at all.

The Overlooked Incentives

Here are three categories of benefits that companies often miss:

  1. Workforce Training Programs
    States and local governments often fund customized training for new or expanding employers. This can include both classroom instruction and on-the-job training, dramatically lowering onboarding costs.
  2. Infrastructure Improvements
    Communities may invest in road upgrades, utility extensions, or broadband expansion to support a new project. These improvements can save millions in capital expenses.
  3. Site Preparation and Permitting Support
    Many jurisdictions fund site grading, environmental remediation, or expedited permitting. These efforts remove barriers that would otherwise delay progress.

Why It Matters

These “hidden” incentives often provide immediate, tangible value. A $1 million road improvement, for example, may not appear on a tax form, but it directly reduces the cost of capital outlay.

A Case Example

One manufacturer we supported received a modest property tax abatement but also $2.5 million in state-funded workforce training and infrastructure support. The latter proved to be the true difference-maker for the project’s return on investment.

The Bottom Line

If a company negotiates only for tax abatements, it is almost certainly leaving value on the table. At Five Points, we help uncover and secure the full spectrum of incentives that communities are willing to provide.

U.S. Tariffs and Canadian Manufacturers: Site Selection Opportunities

,

Canadian manufacturers are facing a new reality. U.S. tariffs on certain imports, along with global supply chain pressures, have reshaped the economics of cross-border trade. For many mid-sized Canadian companies, expanding into the United States is no longer optional. It has become a strategic necessity.

The Tariff Pressure
Recent tariff adjustments have increased costs on materials and finished goods, particularly in metals, automotive parts, and machinery. For Canadian firms that export heavily to the U.S., these added costs reduce margins and competitiveness.

The Case for a U.S. Location
By establishing a U.S. footprint, Canadian manufacturers can:

  • Remove tariff exposure on products sold domestically in the U.S.
  • Shorten supply chains and reduce transportation costs.
  • Access U.S. workforce and training incentives not available abroad.
  • Tap into federal programs such as the New Markets Tax Credit (NMTC).

Where the Opportunities Are
The most competitive locations right now for Canadian companies include border states like Michigan, Ohio, and New York, as well as Sunbelt states offering aggressive incentive packages. Locating in NMTC-qualified census tracts can open the door to financing worth up to 20 percent of project costs.

A Realistic Approach
Expansion requires careful planning. Canadian companies must consider labor availability, state regulatory environments, and long-term operating costs. A data-driven analysis and thoughtful negotiations with state and local partners can help ensure success.

Our Role
At Five Points, we have guided Canadian companies in reducing tariff exposure while securing significant incentives for new U.S. facilities. In many cases, the move has turned a business challenge into a growth opportunity.

Why Site Selection Matters More Than Ever in 2025

When companies plan to expand or relocate, the decision often comes down to cost, speed, and risk. In 2025, the stakes are higher than ever. Supply chain disruptions, labor shortages, and shifting state and federal policies have made site selection a strategic imperative, not just a real estate choice.

The Changing Landscape

In the past, companies often prioritized a single factor such as inexpensive land or proximity to highways. Today, leadership teams must balance a wide range of variables: workforce skills, infrastructure, tax environment, utility capacity, and even broadband reliability.

Global uncertainty has added to the challenge. Tariffs, shifting trade policies, and demand for nearshoring mean that companies cannot afford to make location decisions in a hurry.

The Cost of a Poor Decision

A poor location choice raises more than expenses. It can stall a company’s growth. For example:

  • Labor shortages can lead to costly overtime or limit production.
  • Energy constraints may delay expansion plans or require expensive retrofits.
  • Regulatory hurdles can slow permitting by months, disrupting timelines.

By contrast, a well-chosen site can unlock millions in long-term value through incentives, infrastructure investment, and workforce pipelines.

Incentives as a Game-Changer

Economic development incentives are often the difference between a feasible project and one that never leaves the drawing board. State and local governments continue to compete aggressively for projects in sectors such as manufacturing, clean energy, and life sciences. Companies that approach negotiations with a clear strategy can secure grants, abatements, and infrastructure commitments that reshape the economics of their projects.

Looking Ahead

The companies that thrive in the coming years will be those that approach site selection as a deliberate business process rather than a simple real estate move. At Five Points, our role is to help companies navigate the complexity and capture the full value of their investment.

Five Points Strategic Advisors

info@fivepointsstrategies.com

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

Five Points Strategic Advisors logo

Site Selection Services

Business Incentives

NMTC

Contact