How do you know when you've found the right site for your new manufacturing facility? For that matter, how do you even know what to look for?
Most companies never move from their original location. That's why most executives don't really know how to go about the process of finding a suitable spot to build a plant. They've never personally experienced it themselves.
No harm there. In fact, that's why magazines like this one exist: to fill that information void. With that in mind, here are some of the most important features for a manufacturing and distribution facility.
The most obvious feature is whether or not there is an adequate building already in place? After all, moving into an existing facility, and doing the retrofitting, is usually a lot cheaper than building a facility from scratch. More importantly, it will enable your company to be up and running sooner.
Next is adequate room for expansion. This is important whether or not the site has an existing building on it. Businesses prosper. Companies grow. Will the site accommodate that growth?
Is there adequate transportation access to the site? Which modes of transportation are most important to your company? Are there roads or highways in place to support the new operation?
Is the basic infrastructure in place and is it adequate to your needs? A virgin piece of land is not a show-stopper, but it sure helps to have electricity, water and gas -- as well as at least a gravel or dirt road -- out to the site.
| Next is adequate room for expansion. This is important whether or not the site has an existing building on it. Businesses prosper. Companies grow. Will the site accommodate that growth? |
Is the site properly zoned so that your company can
do what it wants to do with the plot of land or existing building? If there are any zoning ordinances or environmental restrictions that will preclude your smooth transition into a manufacturing environment, you should know that from the very beginning.
Is the site free of environmental problems? The site you have in mind might be perfect as far as the previous criteria is concerned because it was the former site of a paint or battery factory. However, there might be some "EPA issues" involved with the site, if you know what I mean. No one wants to be responsible for any expensive cleanup liability.
Is there clear title to the property? Do you know who owns it? Are you sure it's really still available? Does it involve multiple pieces of property with multiple owners?
Is the cost of the land or the price of the building reasonable? How confident are you that, once the land or building owner hears that there is a prospect in sight, the price will not escalate? This becomes a more important question the greater the number of property owners involved.
Do you know what financial incentives may come into play with this site? Which federal, state and local incentives might this company be eligible for with this piece of property? Don't forget the utility companies in this area.
Is there adequate parking available for the company's workers? Make sure you know what the standard ratio is, and then try to be a little better. Remember that round-the-clock operations with multiple work shifts generally require more parking than do straight eight-to-five operations.
Finally, is there someone in a position to fix problems you encountered with this list and, more importantly, do you know who that person is? Problems will arise because no place is perfect. However, being able to address and correct any stumbling blocks as they occur will greatly speed up the process.
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