How CRE leaders can help win the battle for frontline tech talent 

With digital transformation happening across industries, the demand for semiconductors is on the rise. With increased demand comes a need for manufacturers to ramp up production—which means they need to bring on more of the frontline workers who produce the components powering the next generation of devices. A skilled frontline workforce will ensure operational excellence in a competitive global landscape.

In 2022, the U.S. passed the CHIPS and Science Act which includes $280 billion of investments aimed at boosting domestic semiconductor manufacturing. At the same time, rising production costs are exerting pressure on what is already a resource-intensive sector of the technology industry. To address the cost and demand pressures, manufacturing leaders must optimize their real estate strategies for efficiency and talent attraction.

Frontline workers in tech manufacturing are highly skilled professionals, often with engineering backgrounds. Due to the specialized nature of these jobs, the talent pool is limited, and businesses that rely on capable frontline workers need to locate their facilities where those workers are accessible. With incentives in place to encourage upskilling and training the workforce, locating facilities near trade schools and colleges, allows for easier access to skilled workers. In addition to considering the current population, companies should assess an area’s growth potential based on factors like housing starts and cost of living. 

Recent U.S. tariffs have created complex shifts in manufacturing location strategies. While they have, in some cases, driven Chinese investment into Mexico to bypass tariffs and maintain access to U.S. markets, rising inflation, labor costs, and infrastructure limitations in Mexico are prompting companies to explore alternative locations including emerging manufacturing centers within the U.S. and Canada. To further encourage domestic production, the U.S. government has allocated billions in incentives to companies like Intel, Micron, and TSMC to expand or rebuild their production capabilities within the country.