Choosing the right location for your manufacturing business is the result of taking many factors into account. Here are the top five things to consider when choosing a manufacturing site:
1. Proximity to transportation infrastructure
Incoming raw materials and outgoing products must be feasibly transported in a time sensitive manner. Remember that your products are competing in a ship-overnight, instant-gratification world. Both retail and wholesale customers will be interested in your shipping speed.
Your employees need safe and affordable options for commuting to and from work. In addition, your visiting buyers, designers, business partners and other executives will be most amiable when their comfort and convenience are kept in mind.
2. Availability of talent
Having a bountiful and skilled labor pool is of utmost importance. Many companies have teamed with local trade schools and colleges to develop talent while at the same time building important community connections. Where there is a lack of skilled talent available, your training of local labor will add value to your business while giving something back to the community.
3. Local economy’s stability and potential
Reliable sources of energy, electric grids and ample plumbing infrastructure are integral to daily operations. A stable and reliable local government will help to streamline operational planning and pave the way for more predictable cost structures. And then there’s the local population itself – does it tend to be transient or does it have longevity? Will you be constantly training new employees as people come and go from the area?
4. State, local and community support
It never hurts a brand’s image to be interested in and involved with the people and other businesses that surround them. Improving the quality of life of your workers and being considerate to the local environment helps to make your relationship with those who live and work around your plant a long and mutually prosperous one.
As companies look to manufacture in the U.S. or to return manufacturing to the U.S., incentives can be readily found. States and localities are sometimes willing to compete for your business. Incentives can come in the way of taxes or by way of making it easier and speedier to get necessary permits. The more you’re needed in a particular economy, the more likely you’ll be presented with such incentives.