Talent is the Tipping Point: How Local Labor Market Data Shapes Site Selection Decisions
When companies look to expand or relocate, the first questions are often about real estate, logistics, or incentives. But the smartest site selectors know that one factor trumps them all: talent.
Your building can be retrofitted. Roads can be upgraded. Incentives will come and go. But if the right workforce doesn’t exist—or can’t be developed in time—your project will struggle before it starts.
That’s why local labor market data is a critical foundation of any successful site selection process. The question isn’t just where can we build? It’s where can we grow?
Labor Market Intelligence: Beyond Headcounts and Wage Rates
It’s tempting to scan a state labor report, see a few thousand workers listed in a target occupation, and call it good. But effective site selection requires a deeper level of labor market intelligence—data that tells you not just how many workers are there, but:
How experienced they are
What industries and employers they’re coming from
What wages they command—and what benefits they expect
How fast the local talent pipeline is growing (or shrinking)
What community colleges, training centers, or universities support them
A surface-level headcount doesn’t tell you whether the labor pool is accessible, affordable, or sustainable.
Real-World Example: Advanced Manufacturing Expansion
Imagine a midsize manufacturer looking to expand its operations in the Midwest. A shortlist of three communities all look similar on the surface—comparable wages, available buildings, and highway access.
But a deeper dive into labor data reveals key differences:
Community A has high manufacturing employment but a low replacement rate—meaning many skilled workers are near retirement, and younger workers aren’t being trained at scale.
Community B has a robust CTE pipeline and a new mechatronics training program aligned with the company’s automation needs.
Community C has a higher average wage but also lower turnover and stronger union partnerships that could streamline onboarding and retention.
In this case, the most resilient and growth-ready community isn’t necessarily the cheapest—it’s the one with the most aligned and replenishable talent base.
What Labor Market Data Should You Analyze?
At Impact Economics, we help clients go beyond boilerplate workforce stats to examine the indicators that really matter. Here are some of the most powerful labor data points we use to shape site selection decisions:
✅ Occupational Supply & Demand
Total employment in target occupations
Projected five- and ten-year growth
Job posting intensity and employer demand
✅ Skills & Education Alignment
Completion data from local colleges and training centers
Credentials earned (degrees, certificates, industry-recognized certs)
Alignment with your technical needs (e.g., PLC programming, welding certs, OSHA)
✅ Workforce Dynamics
Median wages and wage trends
Age distribution and retirement risk
Turnover rates, commute patterns, and workforce participation rates
✅ Ecosystem Assets
Availability of apprenticeships and internships
Partnerships with local workforce boards or EDOs
Employer engagement with local education providers
Labor Market Data as Risk Mitigation
Site selection is about opportunity—but it’s also about risk. Labor market gaps can derail an otherwise promising expansion. For example:
Underestimating wage inflation in tight markets
Overestimating the availability of skilled trades
Ignoring the pace of demographic decline in rural areas
Missing key retraining opportunities for transitioning workers
By integrating labor data early in the decision-making process, companies can de-risk site selection and build a more adaptive workforce strategy from day one.
What About Rural or Micropolitan Markets?
Many smaller communities worry they’ll be overlooked because they can’t match metro-level numbers. But here’s the secret: quality beats quantity—especially if a community can demonstrate:
A strong culture of workforce alignment
Custom training solutions and industry-responsive curricula
Employer retention and loyalty driven by place-based values
Rural labor markets can be attractive if they offer flexibility, cost efficiency, and collaborative ecosystems—and we can help tell that story with data to back it up.
Talent Should Lead Your Site Strategy
At Impact Economics, we believe site selection is about finding the best fit—not just the best deal. That means starting with a people-first approach:
Where will you find the workforce that powers your next decade of growth?
We use detailed labor market intelligence, sector-specific insights, and on-the-ground relationships to help our clients build talent-informed site strategies—and avoid costly missteps.
If you’re considering a new location, let’s talk. The right site isn’t just shovel-ready. It’s talent-ready.
