EXCLUSIVE: Consulting lost its focus, companies are paying the price

For companies deciding where to expand, relocate or build, the stakes have rarely been higher. Site selection now sits at the intersection of geopolitics, labour markets and industrial policy, and the quality of advice guiding those decisions is under growing scrutiny.

Tom Stringer, a corporate location advisor with almost three decades of experience across major accounting and consulting firms, told the Wyoming Star (WS)  that something fundamental has shifted inside the industry meant to guide those choices.

WS: You’ve described large consulting and accounting firms as having ‘lost their way.’ From your perspective, what has structurally changed inside these firms over the past decade, and how does that affect the quality of advice companies receive on site selection and economic development?

Tom Stringer:

Many firms have taken on significant outside third party private equity investments or financed ESOP transactions with third parties. Often to the financial benefit of small groups of partners in leadership and not the broader line partners/ directors in the firms. Those loans are due every month. The repayment obligations are often ominous and either firms get there by growing the top line or cutting at the bottom line. That’s firm managements focus, not on client needs.

WS: In practical terms, how should companies approach site selection today, especially given shifting economic conditions, geopolitical uncertainty and competition between states for investment?

Tom Stringer:

Site selection is an existential process for the success of a business. Locations can be the key factor in where a company can find talent, supportive governments, catalytic ecosystems and cost certainty. Locations have to increasingly prove their value propositions to corporate leaders and key employees. The world is entirely mobile.

WS: You’ve worked across sectors from defence to clean energy and advanced manufacturing. Which industries do you see driving the next wave of major site selection decisions in the U.S., and what factors will matter most in those choices?

Tom Stringer:

Defense and transportation tech, energy independence, key manufacturing service sectors and semiconductor are all growing aggressively and will need various skilled positions for decades. They are industries locations should seek to court.

WS: There has been increasing scrutiny around incentives offered by states and local governments. How should policymakers balance competition for investment with long-term economic sustainability?

Tom Stringer:

Incentives have and should always been scrutinized. Locations should always justify the return on the investment in public programs. The states that are often the most aggressive with incentives typically have the most transparent reporting. In those states the taxpayers see the results of smart incentives policy everyday in highly paid jobs and expanding employment and tax bases.

As economic conditions become less predictable and competition between regions intensifies, the margin for error in site selection is narrowing. The process is no longer just about cost optimisation. It is about aligning a company’s long-term strategy with a location that can sustain it.

It seems that the challenge for companies is not only choosing the right place, but also making sure the advice they rely on is still built around that goal.