Congratulations! You won the big contract. Now it’s time to deliver! In order to do so, you’ll need more room, and more people. The decision of where you locate will likely determine how profitable this new business is for your company. For starters, contrast the difference between your expanded operation in the best possible location. Then contrast the difference between your expanded operation in the worst possible location.
The best location will have access to qualified labor, relevant training programs, good transportation infrastructure to get raw materials in and finished goods out, and a competitive cost structure, among other things. But it’s not enough to be in the right state, region, and community – you also have to be at the right site or building. For a site, it should be “ready” – zoning in place, utilities already to the curb, etc. to ensure there are no surprises. We’ve seen deals where a company chooses a location and only then learns that there is no water or wastewater access, or the roads can’t handle the quantity, size, and weight of deliveries. We’ve also seen instances where the lack of understanding of the communication and timing of an announcement negated what could have been hundreds of thousands of dollars worth of incentives.
How do you become a site selection expert on top of managing your company? The short answer is you don’t. Site selection consulting firms such as ours have access to proprietary databases that shed nuanced insight on labor availability, costs, and skills. In fact, we not only look at labor but all of the operating costs (from occupancy and transportation to utilities, taxes, and incentives) so that you can see the impact of locating in one community versus another. We also look at operating conditions and quality of place factors that increasingly impact companies’ ability to recruit and retain employees. And we always look at multiple search areas to provide our clients with options that they otherwise would not have been aware of.
Growth is a great problem to have, as the saying goes. Make sure you manage your expansion and relocation decisions wisely to make the most of it.
If you are considering relocating or expanding, contact Janet Ady at 608.663.9218 for a complimentary consultation to help you achieve a positive outcome.