NEW YORK, Oct. 13, 2020 /PRNewswire/ -- A new survey of U.S. business executives concludes corporate decision makers find large urban areas less attractive business locations due to the COVID-19 pandemic. Released today at the International Economic Development Council (IEDC) Annual Conference, which is being held virtually from Dallas, the study shows that nearly 50% of the executives surveyed reported that large urban areas – cities with a population of more than 1 million – are less attractive as business locations due to COVID-19. Respondents also reported that their perception of some state's business climates has deteriorated due to the way some states have handled the pandemic.
Conducted by Development Counsellors International (DCI) every three years, the "Winning Strategies in Economic Development Marketing" survey has tracked trends in economic development since its inception in 1996. In light of COVID-19, this year's survey also includes findings about how the pandemic affects corporate location decisions and perceptions of U.S. cities and states.
"Now in its ninth iteration, the Winning Strategies survey reveals the changing perceptions of location decision makers, as well as the tools and tactics that help shape those perceptions," said Julie Curtin, president of DCI's economic development practice. "The confluence of a global pandemic, a presidential election and intense scrutiny of equity policies is putting a renewed interest on how location decisions are made, so the results from this year's survey are especially interesting for communities and site selectors alike."
Key findings from the 2020 survey, which is based on the aggregate responses of 316 corporate executives with site selection responsibilities, include:
- States with the Best Business Climates: Texas ranks No. 1 with 48% of respondents citing the state as having a favorable business climate, followed by Georgia at No. 2 with 25%, North Carolina at No. 3 with 22%, Florida at No. 4 with 18% and Tennessee at No. 5 with 13%.
- States with the Worst Business Climates: California has held the distinction of being the least-favorable state for the past seven editions of the survey, with the percentage rising from 57% in 2017 to 63% this year. New York, Illinois and New Jersey have also been ranked in the top five for the last three editions of the report.
- Corporate executives are closely watching the presidential election and expecting to pivot if needed. A majority of respondents (55%) reported that should President Trump be re-elected, they—or their clients—will be more likely to explore locations in the United States.
- Talent continues to rule the decision-making process. Even as the country has seen unemployment rates skyrocket since the start of the pandemic, skills gaps continue to exist and access to skilled talent remains the top location factor in site selection searches.
- Even amidst the pandemic, companies are moving forward with location decisions. 55% of respondents reported that their company will make a location decision (such as move, expand or consolidate) during the next 24 months—5 percentage points up from 2017.
Best States for Business:
- Texas 48%
- Georgia 25%
- North Carolina 22%
- Florida 18%
- Tennessee 13%
Worst States for Business:
- California 63%
- New York 33%
- Illinois 32%
- New Jersey 14%
- Florida 12%
For a free copy of the full "Winning Strategies" survey report or an executive summary, visit aboutdci.com/thought-leadership/winning-strategies.
Development Counsellors International (DCI) is the leader in travel and economic development marketing — increasing visitors and business inquiries for places across the globe. Since 1960, DCI has worked with more than 500 cities, regions, states and countries, helping them attract both investors and visitors. DCI has offices in New York, Denver, Toronto and Los Angeles. For more information, visit aboutdci.com or follow @aboutDCI on Twitter.
SOURCE Development Counsellors International