Report: Key Factors That Drive Manufacturing Site Selectors Investment Decisions

A recent article in a major site selector trade publication—Area Development—details the key factors that influence project decision makers to pull the trigger on the relocation or expansion of their manufacturing operations.

The article entitled: “What Companies Need from Modern Manufacturing Sites” published in the first quarter 2026 edition of Area Development seems to mirror the Orange County Partnership’s economic development playbook entering 2026.

The article authored by Beth Buckner, Member, Taxation and Beth Friedrich, Director of Public Affairs of Moore & Van Allen of Charlotte, NC, listed site readiness among the top decision drivers for manufacturing investment.

“By the time a manufacturer initiates a formal site search, the window for meaningful site preparation has largely closed,” the article stated. “Manufacturing investments are rarely made lightly; they often develop over years but can also be accelerated by sudden market shifts or external shocks, as seen during the COVID-19 pandemic. In either scenario, companies favor locations where key readiness factors are already in place.”

In terms of site readiness, the authors cited securing necessary permits and approvals as being critical in order to avoid project delays that can induce higher carrying costs and the disruption of operational timelines.

The report also cited the availability of water, sewer and power as keys in the selection process.

Water and sewer infrastructure are frequently among the most significant constraints. Many otherwise attractive sites lack systems capable of supporting modern manufacturing operations at scale. Heavy infrastructure upgrades can materially affect project timelines and capital budgets, introducing risk that manufacturers must account for early in the decision-making process,” the report noted. “Locations with funding mechanisms already established to address infrastructure gaps provide manufacturers with greater confidence and fewer unknowns.”

The availability of sufficient power is highly important to the emerging data center development sector.

Other key factors include incentives and the availability of a qualified workforce. The report noted that property tax treatment and the offer of multi-year property tax incentives “remains a core consideration for capital-intensive facilities.” It also cited the granting of sales tax exemptions as an attractive incentive to help offset high construction costs.

“Modern manufacturing site selection reflects a complex balancing of capital efficiency, operational certainty and long-term risk management,” the report concluded. “Companies evaluating new facilities are increasingly focused on locations that offer predictable infrastructure, reliable power, workforce alignment and incentive structures that match capital intensity. Sites that meet these criteria allow manufacturers to deploy capital with greater confidence and position facilities for sustained performance over time.”

For the full Area Development report, go to:

 https://www.areadevelopment.com/manufacturing-industrial/q1-2026/what-companies-need-from-modern-manufacturing-sites.shtml