A Disciplined Road Map for Industrial Site Selection
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19 May 2020
It’s almost always good news when an industrial manufacturer needs to find a new plant site. It means business is growing, new markets are emerging, and financials are healthy. However, this is the point of time in the business cycle when decisions about next steps need to be made carefully. Unfortunately, this is when many businesses get tripped up.
Plant owners and managers may agree on the need for new production lines, more distribution capacity, new automation processes, and more staff. But this is also when additional rigor is most urgently needed to analyze the best-case business scenarios for that next step. It’s when a pre-capital plan with disciplined site selection criteria is most needed.
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Site selection has traditionally focused on analyzing and comparing markets based on their current — and sometimes historical — capacity to support a corporate end user’s organizational objectives. More recently, a fundamental shift is under way where clients are challenging their consultants and candidate communities to also provide assessments of...