Is your business landlocked, making it difficult to grow at your current location? Is your lease up, with unfavorable terms looming? Or maybe you’re getting ready to sell the business, and the new owners want to move into a new building?
After having worked with companies all across the country, we have learned that manufacturers who choose to relocate and/or expand typically base their decision on one of the following four reasons:
- Access to talent. Many relocation decisions are driven by companies who simply cannot find the quality or quantity of talent they need in their current location. Across the board, this is the most common driver that we see.
- Access to markets. Companies may want to be closer to their supply chain and customers. Or, as is more often the case these days, they may wish to set up a new operations base to combat competitive inroads. For example, setting up a base on the East Coast serves as a warning to foreign competitors who may be looking to start operations in the U.S. because of our emerging trade policies.
- Access to unique infrastructure. Some companies need to be near deep-water ports or airports with long runways. Others might need access to millions of gallons of water per day. These types of needs end up driving the short list for their location decisions.
- Costs. Of course, all finalist locations are judged by costs, both one-time and ongoing operating costs. Even if a decision is being driven by access to markets or access to talent, the site selection consultant will still be doing a 10-year discounted cash flow to compare finalists. The only difference is that the locations will vary based on whether the driver is talent, market access, or infrastructure.
Because the wrong decision can set a company back for a long time, or even threaten its existence, those that use site selection firms are at a distinct advantage to those who do not. We know where to get the information on labor markets and costs, and are also experts at intricate tax laws, incentives, and more to help you make the right choice.
Need a professional to guide your company through the site selection process? Contact the Ady Advantage team at 608-663-9218.