Creating Resilience
Top Three Themes at the Forefront of Economic Development Discussions
May 30, 2025 4 Minute Read
As economic development continues to rapidly evolve, industry leaders from across the country convened in Chicago for a summit to discuss recent trends, share best practices and address today’s most pressing topics. Participating organizations included:
Participating Organizations Included:
- Boise Valley Economic Partnership
- REDI Cincinnati
- Missouri Partnership
- One Columbus
- East Tennessee Economic Development Agency
- South Carolina Department of Commerce
- Dallas Regional Chamber
- Louisiana Economic Development
- Greater New Orleans, Inc.
- CBRE
Three prominent themes emerged during the discussions, including navigating the impact of tariffs, strategically addressing labor constraints and identifying solutions to meet power demands.
01 - Navigating the Impact of Tariffs
What are the challenges?
Understanding the complexities of tariffs and their impact on foreign direct investment (FDI) and existing businesses is critical for economic development leaders. The rapidly changing tariff policies create economic uncertainty, often delaying investment and potentially leading companies to consider countries with more favorable trade conditions. Conversely, ongoing projects face increased urgency for quicker investment decisions due to rising import costs for construction materials.
Economic development organizations must work hard to deeply understand the business issues their clients are working through so they can translate them and advise others considering their location and the communities they serve.
What are possible solutions?
Economic development organizations can help their communities navigate the current trade landscape through the following actions:
- Focus on Core Strengths: Promote local advantages that are less susceptible to tariff impacts, such as a skilled workforce, robust infrastructure and appealing quality of life.
- Attract Targeted Investment: Focus on attracting domestic investment for sectors that might benefit from reduced global competition because of tariffs and companies looking to reshore or nearshore operations.
- Leverage Foreign-Trade Zones: Explore the potential benefits of establishing and utilizing Foreign-Trade Zones, allowing businesses to import goods without paying tariffs until they enter the U.S. market, potentially offering some relief from immediate tariff costs.
Now is a great opportunity for business retention and expansion. Figuring out what differentiates your market and impressing upon your value as a region is key.
02 - Strategically Addressing Labor Constraints
What are the challenges?
The availability of a skilled workforce is crucial for location decisions. Communities with low unemployment or declining populations face a hurdle in demonstrating their capacity to meet labor demands for new or expanding businesses. These communities might struggle to overcome negative perceptions about growth potential and workforce capacity, even if they have viable solutions. Additionally, while a megaproject can be an asset, it can also create competition for labor and resources, requiring a nuanced marketing strategy to attract other businesses.
Customized workforce training programs can serve as a major differentiator for companies that are seeking to derisk their location decisions. South Carolina’s readySC training program is a great example.
What are possible solutions?
Communities can invest in workforce development and demonstrate their scalability. Furthermore, a well-defined marketing approach can leverage the presence of a megaproject to attract additional economic development.
- Targeted Training Programs: Partner with local educational institutions (community colleges and vocational schools) to develop customized training aligned with the needs of target industries.
- Phased-Growth Plans: Use a phased approach to hiring that aligns with the gradual buildup of the workforce and the capacity of training programs to scale, demonstrating a realistic path to meet labor needs.
- Leverage Automation: Target projects that can utilize automation and technology to augment the existing workforce and reduce reliance on a large labor pool.
- Focus on Synergies: Target businesses that can serve as suppliers or partners to large projects and market the development of a specialized industry cluster, highlighting the co-location advantages.
Higher education remains an economic driver. Early partnerships with universities and technical schools to upskill talent for new technologies is becoming essential in demonstrating a community’s talent pipeline.
03 - Identifying Solutions to Meet Power Demands
What are the challenges?
In today's environment, site availability and power access often supersede other factors in site selection. Power demands continue to outpace existing infrastructure and operational capacity in many U.S. markets. Finding sites for large industrial users is increasingly difficult, forcing companies to reshape their approach to projects. Existing infrastructure may not meet their operational needs, requiring costly and time-consuming upgrades. Power companies are also facing growing regulatory concerns while inundated with inquiries.
Energy is reshaping site-selection challenges. While talent is still a major factor, power and site availability are superseding that for industrial projects.
What are possible solutions?
Solving for complex power and infrastructure needs requires collaboration and exploration of new strategies.
- Address Compatibility Early: Consultants and economic development organizations should feel empowered to have early conversations to determine if a project is the right fit for a community.
- Public-Private Partnerships: Foster collaboration between government, utilities and the private sector to finance and develop infrastructure.
- Streamline Permitting and Pad-Ready Sites: Expedite permitting processes for infrastructure projects and develop sites with preapproved access to sufficient and reliable power, including renewable energy options.
The electric utility industry is adapting to surging power demand from AI and electrification. Sites must be carefully vetted for changing regulations designed to manage this growth. Tertiary markets stand to gain investment due to constraints in established areas.
For More Information
CBRE’s Location Incentives Group provides knowledgeable incentive services to help our clients secure benefits and cost savings. The seasoned team of advisors has spent years building relationships with state and local economic development contacts across the country. Working together, we can deploy our proprietary tools and proven processes to identify opportunities, model scenarios and make sound recommendations that align with our clients’ business objective.
For more information on the latest economic incentives trends, please contact the Location Incentives Group.
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