Answered by Katie Culp, CEO and Partner at KSMLA 

Each site selection assignment has its own unique elements, but one thing common to all projects is that companies are trying to minimize risk and avoid the unexpected. According to KSM, the top factors influencing a client’s location decision include: 

• Labor market characteristics: What is the availability and skill level of the workforce? 

• Capital and operational costs: How much will it cost to operate in the chosen location?

• Local business climate: Is it easy to do business there? Can projects be completed on time? 

• Site and building availability: Is there space available that meets the company’s needs? 

• Fit with company-specific requirements: Considerations like supply chain, public transportation and time zones. 

• Quality of life: Important for attracting and retaining talent. 

• Infrastructure: Are there adequate utilities, transportation and technology networks? 

Different factors are important to different companies. For instance, a company’s supply chain demands might immediately rule out certain geographies. Ultimately, each factor in a site selection project should be weighted based on that specific company’s needs and goals.

Evaluating multiple locations during a site selection project is essential for several reasons. Practically, exploring various sites creates a competitive environment, benefiting both your company and the communities involved through better costs, timing and economic incentives.  

In incentives applications, there's often a “but/for” qualifier. This means that your company agrees that “but for these economic incentives, the project would not take place here.” Therefore, showing that incentives are a key factor in your decision requires having a compelling alternative market under consideration.  

Katie Culp, emphasizes, “When locating in the U.S., it’s important to remember that each state operates independently and varies in how they treat foreign investment. Furthermore, within a single state, cities and towns can function very differently from one another. When narrowing down your search within the U.S., it’s imperative to visit each location under serious consideration to ensure it will be a good match for a long-term investment and relationship with state and local stakeholders.”  

From a financial and operational perspective, companies expanding into the US should assess how potential locations align with both their short-term and long-term growth strategies. Factors such as tax structures, labor costs and access to local talent can significantly impact operational efficiency. Additionally, state-specific requirements—such as financial compliance, employment laws and payroll structures—play a critical role in business operations. Understanding these nuances before finalizing a location is essential for mitigating risks and avoiding costly challenges.