Mark Simmons and Morgan Crapps offered analysis in Area Development of how the coronavirus pandemic is impacting supply chains and foreign direct investment (FDI).
"As we have witnessed rising offshore wages and operating costs, increased lead times, a lack of consistency in product quality, and a move toward more protectionist trade policies, many of our clients have for some time been assessing these mounting global supply chain risks vis-à-vis any cost-competitiveness that they once produced," Mark explained. "The COVID-19 disruption will accelerate these analyses for many companies, and we suspect that our clients may use this opportunity to evaluate the benefit of assessing multiple suppliers and introducing additional automation into their processes."
Morgan also touched on supply chain issues and explained how companies can make headway right now on their next project.
"It’s a good time for foreign investors to begin the site selection process," Morgan said. "With the right assistance, investors can still get a good understanding of ongoing operating costs and pre-COVID labor markets, with the potential for competitive up-front costs. Communities are searching for ways to revive their economies and create jobs, and many in the business community are eager to do deals."
You can read their full analysis here. Area Development has been a leading resource in the site selection industry since 1965.
Parker Poe Consulting is a corporate site selection and economic incentives consulting firm. The Parker Poe Consulting team provides site selection services to find data-driven solutions for clients who are expanding their footprints and considering new capital investment and job creation. Parker Poe Consulting also provides economic incentives consulting services to growing companies, helping clients navigate and negotiate incentives for economic development projects. From global conglomerates to family-owned businesses, Parker Poe Consulting positions companies to make informed project decisions that will maximize operational effectiveness while reducing costs.