Labor shortages and housing affordability have become two of the most pressing challenges for food and beverage (F&B) manufacturers and distributors operating in today’s industrial real estate market. For operators relying on a consistent, accessible, and affordable workforce, location strategy is now about more than just square footage and logistics — it’s about being close to labor and the housing that supports it.

Below, we’ll explore how the connection between labor availability and workforce housing is reshaping site selection and facility performance in the F&B industry, providing strategic insights, data-driven tools, and real estate solutions to help operators make smarter location decisions that align with long-term workforce sustainability.

Why Labor Availability is a Top Concern for F&B Operators

Food and beverage operations are among the most labor-intensive in the industrial sector. Whether it’s processing, packaging, quality control, or shipping, F&B facilities require a large, dependable workforce to operate efficiently. However, across the U.S., employers are struggling to find and retain industrial labor. Deloitte reports that nearly 60% of food processors cite labor availability as their top operational concern in 2025.

Key labor challenges in the F&B sector include:

• High turnover rates for warehouse and food processing jobs
• Intense competition for blue-collar labor
• Wage pressure and inflation
• A shrinking pool of available, local workers due to housing displacement

These labor constraints not only affect daily productivity but also influence long-term operational strategies, from site selection to automation investments.

The Overlooked Link Between Workforce Housing and Facility Performance

The F&B labor challenge doesn’t exist in a vacuum; it’s directly linked to the availability and affordability of nearby workforce housing. As housing prices rise and affordable rentals become scarce, many workers are forced to commute longer distances or leave the region altogether. Limited workforce housing near industrial facilities can result in smaller candidate pools for hiring, higher absenteeism and turnover rates, longer onboarding periods with increased training costs, and operational delays caused by ongoing understaffing.

In markets like Salt Lake City, Denver, and Dallas, industrial facilities that are far from workforce housing clusters face greater difficulties in attracting and retaining entry-level talent. Even companies offering competitive wages can struggle when their workers face long commutes or unaffordable rent.

Real Estate Site Selection Strategies to Improve Labor Access

To navigate these challenges, savvy operators are approaching site selection with a labor-first mindset, leveraging workforce analytics, housing data, and real estate advisory services to make smarter decisions.

Key strategies include:

• Labor market analysis using tools like EMSI or Lightcast to assess local workforce availability and cost
• Housing overlay mapping to visualize proximity to affordable multifamily and workforce housing
• Commuting studies that evaluate access to public transportation or major arterial roads
• Zoning and land-use reviews to ensure compatibility with housing and employment needs

At Colliers, we frequently use heatmaps that display labor density alongside housing affordability indexes and commute times to potential sites, which is an essential tool for informed decision-making.

Colliers Insight

Bret Swango, CFA

Precision in the location selection process is more important now than ever. Given the shortages of blue-collar talent, this labor pool has a plethora of options as to where to work, and they are highly commute-sensitive, especially in highly competitive markets. Best in class data and a thorough analysis of both the supply and the competitive environment can de-risk the location selection process, which ultimately helps maximize risk-adjusted returns for organizations.

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Creative Solutions and Partnerships

In some cases, solving the labor-housing challenge requires more than just location selection and it also calls for partnerships and innovation, such as:

• Employer-assisted housing programs offering relocation stipends or rental assistance
• Transit-focused development near bus or light rail hubs to support worker mobility
• Public-private partnerships with local governments to co-invest in infrastructure improvements
• Zoning overlays and industrial mixed-use allowances that promote workforce housing near job centers

One recent example of this is Tyson Foods investing in workforce housing initiatives to stabilize its labor force near production plants. Similarly, several industrial developers are working with cities to align industrial growth with housing supply planning.

Recommendations for F&B Operators

To position your business for long-term labor stability, consider including labor and housing factors in your real estate strategy.

Checklist: What to Ask When Touring a Site

• What is the average commute time for entry-level workers to this location?
• Are there bus routes, park-and-ride options, or bike access nearby?
• How close is the site to affordable workforce housing or planned residential growth?
• Are there any local or state workforce incentives tied to this location?
• Has the broker provided a labor heatmap or demographic overlay?

Partnering early with an industrial real estate advisor who understands these dynamics can give you a competitive edge and protect your operation from costly labor disruptions.

Real Estate is Part of the Labor Strategy

The labor and housing crisis isn’t going away. For F&B companies, it’s not just an HR problem; it’s a real estate problem. Industrial facilities must be located where the workforce can live affordably and sustainably. Choosing the right site today can reduce turnover, improve productivity, and support long-term operational resilience.