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.