We are back with our series on key factors or our “Must Haves” for selecting a site for new capital investments. With the holidays upon us, we know wish lists are clogging Santa’s mailbox. So we are adding ours to the pile.
As we have discussed in previous posts, projects are different, but they tend to share key requirements that affect the site location decision:
- Available Site or Building
- Logistics
- Utilities
- Workforce Availability
- The Financial Case
- The “Feeling”
Corporations get one shot at selecting a successful site for a new site location. If the site doesn’t work, it’s not easy or economical to pull up stakes and move. Each project is unique with a multitude of site selection criteria, but they tend to share key requirements that affect the site location decisions.
The third key factor we are discussing in this series is utility availability and reliability.
For site location projects that have unique utility demands, suitable properties are heavily dependent on the availability, quality, and cost of electricity, telecommunications, natural gas, water, and sewer service. This is particularly important for heavy-industrial projects in such as steel, chemical, and automotive facilities, as well as data centers.
To verify the project’s utility needs will be met with predictable cost and minimal delivery risk, the involvement of utility providers in the site location process is critical.
Take electricity for example. Early in our process, we verify that the electric utility serving the site can handle the demands of our client. That the maximum loads, both short and long-term, can be met and that the overall electrical system is equipped to handle the requirements. If new infrastructure is required, such as a substation, we verify that equipment lead times and costs also are within the project constraints.
At SDG, we have decades of experience working with utilities to ensure our clients’ needs are well served. We understand the detailed evaluation and negotiation processes that guarantee a site is set up for success for the duration of its existence.
Strategic Development Group
Our experienced team is singularly 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!
