The Strategic Development Group and David Letterman’s Late Show “Top Ten” lists have something in common. We both have about 25+ years of experience. So, we thought we would steal the concept from Dave and make our own “Top Ten.” The top ten mistakes that companies make in the site selection process.
If you are not old enough to remember these famed lists, you might enjoy a quick trip to Google to know what we’re talking about.
Let’s start at the top.
Mistake #10: Restricted Search
Companies acting without a site consultant often limit their search areas based on internal biases. Without an objective, experienced site selection firm, it’s easy to consider areas based on opinions or siloed metrics. Lack of alignment makes it difficult for decision-makers to have a comprehensive understanding of all factors of the business that lead to long-term success at a new location.
For example, a company may limit a manufacturing location to only states that are “right-to-work.” Some states, however, that are not right-to-work, may have regions of very low union activity and be more suitable for meeting the goals and objectives of the project.
Another common example is companies that want to focus on areas in which a high level of new projects or growth is happening—the popularity effect. However, these areas could present difficult operating conditions in terms of labor, transportation, and other operating costs. This limiting of the search area could preclude consideration of sites that are the best overall fit for the project.
Searches that do not consider sites based on an unbiased, comprehensive review risk selection of a less attractive site that compromises competitiveness.
Solution: Cast a Wide (unbiased) Net
As a professional site selection firm, we objectively review the project priorities and goals. Our team is skilled at understanding the complexities of sites throughout the country. We unearth options that others may overlook. As a result, we find the right location at the right costs with the right resources for your new site.
Companies partnering with a neutral observer, researcher, and analyst like SDG avoid common missteps. Ultimately, business leaders make the decision. But working with a site selection firm means those decisions are informed by balanced information; allowing all facets of the business and potential locations to be considered.
Our experienced team has one goal when we partner with your company—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 our blog or discuss how we can help you achieve your company or community’s goals for long-term success. Contact us!