Market Intelligence

Labor market analysis for better location decisions

Faced challenges

In an increasingly globalized labor market, location decisions must be based not only purely on a logistic and financial basis, but also considering the availability of skilled labor.

In order to quantify the selection of new locations, IAV was looking for a partner to provide facts and figures to support the board with a quantified decision-making basis for the site selection for a strategic software initiative. The challenge of the project was to provide a suitable data story to the client and achieve transparency and understanding of the results.

„HRForecast‘s analysis enabled us to make a well-informed decision which countries to focus on for our strategic software initiative. The analysis was insightful and well presented, and we later found the main findings to match the actual circumstances in the countries.“

Andreas Michalovcik, Project Manager Corporate & Business Development, IAV GmbH

Questions to be clarified:

Is there access to a highly-qualified, high-performing, productive and well-educated workforce?

What is the labor market demand situation in the analyzed location? Which competitors are active on the market?

What is the labor market supply situation? Which labor costs (e.g. salaries, taxes, office rental etc.) will occur in the selected locations?

What are the key economic, political and societal factors that characterize a location (pro’s / con’s, limitations, etc.)?

Project approach

1. Research

Based on a pre-defined shortlist of countries and locations, the information about supply, demand, costs as well as business environment was gathered from the macroeconomic data and HRForecast database.

2. Structuring of information

The information from internal and external sources was structured and cross-checked for further analysis.

3. Data analytics

We analyzed the data from various perspectives applying analytical apps. That way, generating in-depth insights into the current labor market situation in different locations was possible.

4. Results & insights

Based on the analysis, we provided a detailed visualization and explanation of the results towards decision-makers. This allowed the client to make a better, fact-based decision for a new location.

Key insights & value-adds for the client

IAV received:

valuable information for the decision on where to establish a new business location
acumen about the labor market situation, including insights into labor costs and information on the labor supply and quality
transparency on competitors and automotive companies which are already operating in relevant locations.