#590 – Top 10 Critical Site Selection FactorsPosted on
Top 10 Critical Site Selection Factors
Area Development Magazine, one of the main site selection resources in our industry, did a late 2015 study on the Top 10 Critical Site Selection factors that go into making an expansion decision. These 10 were (with our comments in italics behind each item):
1. Highway Access—we are finding logistical costs and decisions becoming more important
2. Occupancy & Construction Costs on the Rise—makes our existing inventory of properties more valuable
3. Available Land Becoming Scarcer—not generally a problem in our rural locations
4. Available Buildings Needed for Expedited Timelines—Our forte: a niche of developing projects on a very tight timeline..it’s a key differentiator for Team Agracel!
5. Availability of Skilled Labor Always a Top Priority—and becoming more of an issue with each of our clients
6. Labor Costs Vary by Project & Location
7. Right-to-Work State Often the First Lens on Location Decision—definitely the first lens for site selection decisions and growing in importance. Probably should be higher up on the list.
8. Proximity to Major Markets Provides Access to Customers & Talent—we are seeing more of an importance to being close to other manufacturers rather than to population.
9. Energy Availability & Costs Leading Companies to Reshore–growing in importance and an important cost savings for manufacturing in the USA.
10. Corporate Tax Rate Takes a Big Bite