Things to Consider When Choosing a New Facility

When you choose the ideal site for a new food manufacturing, processing, or packaging plant, you should first ask yourself a very important question: “How will this new location help my company thrive?” If you put together a solid business plan based on the type of goods sold and the quantity of the goods you will produce. By asking yourself that question you can create a certain criteria for each site that you consider. You should look at several different factors when choosing a location for your new facility, so take a look at the infographic below:
A few of these points can apply to more sites than others, but we think that it is still important to take all of them into consideration for the type of facility you are considering.

Business Environment 

An inviting business environment can be just as important as everything that surrounds your potential site location. Choosing a location within a community that will support accelerated growth for your business is a wise decision. Things to Consider:

  • State, property, and various other taxes differ from site location to site location.
  • Property, state and other taxes vary from location to location. Conduct comparative analyses to determine which locations offer the best tax benefits for your business.
  • — States and municipalities continue to offer incentive packages to food and beverage companies looking to build new plants. Weigh those incentives against other factors mentioned in this article to determine if they’re worth it.

 

Labor Costs and Quality 

The cost of labor and the quality of products manufactured are crucial to the success of any new facility. You’ll want to make sure and examine the current and projected wages to better understand how selecting different spaces will affect operable costs. Also make sure there are enough skilled workers in the area can maintain the level of quality your product requires.

Consider a Retrofit 

Building a brand new custom designed facility can cost a considerable amount money and take a lot longer than just finding a location that is already standing that can be repurposed for your company’s needs. There may also be pressure to have a new plant up and running in a short amount of time. In these cases, retrofitting or expanding an existing food plant could be your best option, because it’s generally less expensive and and can be completed more quickly than a greenfield project.

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