SDG’s TOP TEN LIST
It’s time for the next installment of Strategic Development Group’s countdown. Our SDG “Top Ten” list covers the most frequent mistakes companies make in the site selection process. Check out the other installments of our countdown!
Mistake #6: Not Having Competing Sites
Ask any Taylor Swift fan and they’ll be happy to explain why competition is good. Monopolies are harmful to consumers beyond concertgoers struggling against online ticket sale giants. Without choice, we lose bargaining power, prices skyrocket, and quality can plummet. We also lose optionality in the event our number one choice ends up having a fatal flaw. It’s the same when you are in the market for a new industrial site for your business.
Inexperienced site selectors that provide their clients with only one site prior to any negotiation are doing their clients a huge disservice. Ideally, site selectors short-list at least two qualified sites in two states with competing utility and transportation providers going into the final site selection. With choices, comes significant opportunities to reduce utility and transportation costs, as well as the potential of generating more valuable incentive packages. Multiple choices also provide optionality in the event our number one site choice ends up having a fatal flaw.
Avoid the pitfalls:
- Move into final site selection with 2 or more sites and narrow only after negotiations related to site acquisition or incentives.
- Ensure sites on the table are from more than one state.
- Where possible, ensure finalists are served by competing railroads and utility companies.
Solution: Keep Your Options Open
It is best, when possible, to have at least two qualified sites in two states with competing utility and transportation providers going into final site selection. These circumstances will ensure the lowest rates and highest incentive values for the project.
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.