The re-emergence of Donald Trump back in the White House illustrates the clear connection between local, state and federal government public policy the successful operation of companies and community economies.
States across the nation will face three dramatic crisis’ in 2025: a lack of housing supply and energy transmission which is killing economic development and corporate site location projects and an office crisis where vacancy rates in urban and suburban market alike are depressing rents, values, tax collections and ultimately community services. The imposition of tariffs not just on China and their manufacturing partners but also on Canada and Mexico could promote foreign direct investment (FDI) and/or trigger massive supply chain and rising inflation as good Americans are used to buying on the cheap.
Data center growth will continue unabated in 2025 as tech companies work to keep up with the computer demand needed for Artificial Intelligence (AI). The lack of electricity at many potential data center sites calls for creativity from an energy delivery perspective that likely will lead to more co-generation energy facilities to serve these data center and industrial sites “behind the meter.” Even facing a slowdown in the development of developer’s speculative industrial buildings following the increases in interest rates, site development remains important for companies and communities to ensure job-ready industrial sites available.
The current Populist politics demands that tax policy, economic development incentives, and even land use plants all are measured for their anticipated Return on Investment (ROI) for the community making the tough public policy decision to embrace the creation of high-wage jobs and capital investment. Growing industries are always on the Montrose Group’s Top 10 Corporate Site Location and Policy Trend list. In 2025, growth in the defense and food and beverage industry will continue as Republicans are likely to push a pro-defense agenda and the new federal Health and Human Services Secretary Robert F. Kennedy’s Make America Healthy Again agenda is likely to drive more local food production.
2025 will be a year where local, state and federal public policy decisions drive economic success of failure.
