We’re continuing our series on key factors or our “Must Haves” for selecting a site for new capital investments.

The long-term impacts of site selection decisions show up in costs, quality, and competitiveness. Each project is unique, and many site selection criteria include the type of sector, location of suppliers and customers, and workforce availability.

All projects are different, but they tend to share key requirements that affect the site location decision:

  1. Available Site or Building
  2. Logistics
  3. Utilities
  4. Workforce Availability
  5. The Financial Case
  6. The “Feeling”

The fifth key factor in this series is the financial case.

Likely, the most important comparative consideration between sites is the net financial cost of developing and operating a facility. In terms of the initial development of a site, key considerations include:

  • Cost of acquisition and construction
  • Clearing, grading, geotechnical remediation
  • Installation of roads and rail
  • Enhancing utility load capabilities

Some of these costs may be offset through grants and other financial incentives secured during project negotiations. However, failing to account for these expenses and carefully balancing a site’s advantages and shortcomings will lead to financial liability.

Corporations get one shot at selecting a successful site for a new location. If the site doesn’t work, it’s not easy or economical to pull up stakes and move. Each project is unique, but at the end of the day, the bottom line rules. The investment must be prudent and lead to growth.

Strategic Development Group

Our experienced team is focused on finding your project the best site for long-term success. We take a holistic approach and have the expertise to negotiate and navigate the intricacies of your unique company and needs.

Founded in 1999, SDG is a highly specialized site selection consulting firm. We focus on identifying optimum locations promptly, maximizing the value of incentives, and minimizing risk for corporations from across the globe. SDG has managed projects with capital investment from $15 million to over $1 billion for companies in a wide range of industries, including automotive, chemical, steel, and life science.

We would love to hear your thoughts on this article or discuss how we can help you achieve your company or community’s goals for long-term success. Contact us!