The success of any kind of business depends to a large extent on the choice of location, which in turn requires site selection services provided by an acknowledged industry expert. There are an enormous number of variables which need to be matched against potential sites. The one that is ultimately chosen has to be able to support the client's plan for growth, business processes, corporate policies and their vision.
Site selection consultants tend to follow data-driven methods when they are asked to find a new location for a business expansion or relocation. The company's customer base, its target market and the type of operations at the new facility are the deciding factors when it comes to choosing the general region. Databases of available properties in the region are then scanned to narrow it down to a few specific sites that match the company's requirements. The consultant can then conduct site visits to take a first-hand look at these sites.
The process is different for each industry. For instance, the system followed by retail and restaurant chains for selecting the next outlet or franchise location will be completely different from the process a company looking for a place for its data center will follow. Some factors, however, are common to all business expansions.
Among the most important issues to be considered is the business climate, which generally means lower taxes and business-friendly regulations. In this case, it is not just about choosing a location with low taxes and no red tape. The key here is negotiations to extract incentives from state and local officials and economic development agencies.
The percentage chance of a project being successful and providing the expected ROI is directly related to the amount of state and local support it gets. This can be a combination of tax abatements, exemptions and tax credits, cash loans and grants, infrastructure support and subsidized rentals, workforce training and recruitment assistance, low-cost energy, etc. One of the main services provided by a site selection consultant is getting such incentive package bids from prospective cities and states, and then engaging in negotiations to secure the level of incentives the client is looking for.
The availability of a talent pool and skilled workers is another critical consideration. This requires an existing cluster that supports a supplier network and nurtures innovative startups, along with the presence of universities and other institutions providing higher education. The quality of life and cost of living also make a difference, since these will help the company attract employees and retain them.
A location offering the best recruitment possibilities can be unearthed using a supply and demand analysis of the labor market. It helps if the incentives package includes funding and support for hiring employees and workforce training. Officials handling the negotiations can involve local universities and get them to offer a training program that will provide a steady flow of skilled workers.
Easy access to transportation networks including highways, rail, airports and shipping ports is also a critical part of the equation for companies with complex logistical needs. Other factors to be considered include availability of shovel ready sites, energy reliability and low-cost power, water supply, etc. The bottom line is that finding the perfect business location is a critical and complex process, and requires site selection services provided by a firm with lots of experience and contacts.
Site selection consultants tend to follow data-driven methods when they are asked to find a new location for a business expansion or relocation. The company's customer base, its target market and the type of operations at the new facility are the deciding factors when it comes to choosing the general region. Databases of available properties in the region are then scanned to narrow it down to a few specific sites that match the company's requirements. The consultant can then conduct site visits to take a first-hand look at these sites.
The process is different for each industry. For instance, the system followed by retail and restaurant chains for selecting the next outlet or franchise location will be completely different from the process a company looking for a place for its data center will follow. Some factors, however, are common to all business expansions.
Among the most important issues to be considered is the business climate, which generally means lower taxes and business-friendly regulations. In this case, it is not just about choosing a location with low taxes and no red tape. The key here is negotiations to extract incentives from state and local officials and economic development agencies.
The percentage chance of a project being successful and providing the expected ROI is directly related to the amount of state and local support it gets. This can be a combination of tax abatements, exemptions and tax credits, cash loans and grants, infrastructure support and subsidized rentals, workforce training and recruitment assistance, low-cost energy, etc. One of the main services provided by a site selection consultant is getting such incentive package bids from prospective cities and states, and then engaging in negotiations to secure the level of incentives the client is looking for.
The availability of a talent pool and skilled workers is another critical consideration. This requires an existing cluster that supports a supplier network and nurtures innovative startups, along with the presence of universities and other institutions providing higher education. The quality of life and cost of living also make a difference, since these will help the company attract employees and retain them.
A location offering the best recruitment possibilities can be unearthed using a supply and demand analysis of the labor market. It helps if the incentives package includes funding and support for hiring employees and workforce training. Officials handling the negotiations can involve local universities and get them to offer a training program that will provide a steady flow of skilled workers.
Easy access to transportation networks including highways, rail, airports and shipping ports is also a critical part of the equation for companies with complex logistical needs. Other factors to be considered include availability of shovel ready sites, energy reliability and low-cost power, water supply, etc. The bottom line is that finding the perfect business location is a critical and complex process, and requires site selection services provided by a firm with lots of experience and contacts.
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