Finding the Perfect Location for Your Manufacturing Company

Like any other business with employees and customers, a manufacturing company has to consider several factors when choosing the location for its headquarters.

Location is usually a key component of determining the success or failure of a company and, therefore, should be given careful consideration as you contemplate your options.

If you are thinking of starting a manufacturing business and need to find a suitable location for opening, read on. We’ve compiled some factors that we believe will be useful to you as you try to locate your business.

Decide on Your Facility Needs

The first thing you need to do is decide on your facility needs. What kind of space do you need? How much parking is required for employees and visitors? How much square footage will you need for your machinery and equipment?

Having a clear idea of what you’re looking for will make it easier to narrow down potential locations.

Find Out About Local Regulations

It’s also essential to learn about local regulations that could affect your operation. For instance, many local governments have zoning ordinances that regulate land use within their jurisdiction.

Municipalities have separate zones for residential, commercial, agricultural, and industrial use in most cases. If you’re opening a factory in a residential neighborhood, for example, your business may not be permitted to operate there due to zoning restrictions.

You should also find out if any permits or licenses are required to operate in specific areas.

Transportation costs

It can be pretty expensive to ship industrial equipment and materials around the country, as you’re probably aware. This means that you need to consider proximity when deciding where your company should be.

If you plan to sell your products nationally or even internationally, it makes sense for you to locate in an area with access to multiple modes of transportation (such as rail, air, and sea). To lower the shipping and transportation costs.

On the other hand, if you plan to sell your products locally, then a location close to major highways may be more suitable.

Accessibility to Workers and Suppliers

Manufacturing companies often need a large labor pool for their internal and support teams like janitorial and food services. Look for areas with a relatively large labor pool and where people are willing to work for your salary range.

Companies with high turnover rates may want to look for areas with less competition from other employers or where people are more willing to work lower-skilled jobs.

The same is true for suppliers. If you have a supply chain that relies on many vendors, it’s best if they are all located near each other to deliver materials quickly and efficiently.

Property Costs and Taxes

When comparing locations, a good rule of thumb is that land tends to be cheaper in rural areas while buildings tend to be more frugal in urban areas.

You need to weigh the costs of purchasing land, building new facilities, or renting buildings against your current budget and long-term expansion plans.

You also need to consider how much money you will save by choosing a location with tax incentives available for companies in your industry or geographical area.

Go Where There Is Demand

One of the most important things to consider when choosing a location is its proximity to your market.

You’ll want to choose an area where enough people need your products and services and are willing to pay for them.

If you’re opening a manufacturing plant that produces automotive parts, locating near one or more auto plants would make sense so your products will have a ready-made market. For instance, living in a place like Texas, you can look into an industrial warehouse for sale in Austin, to be near big auto plants. 

Find a safe location

Crime rates can vary widely across the country and within cities, making it important to find a safe location for your manufacturing business.

There are several online resources that can help you identify the safest locations in any city or town, including NeighborhoodScout, which allows you to search by address or ZIP code and provides comprehensive crime data based on FBI reporting statistics.

Without a doubt, most of the things a manufacturing company does will revolve around their location more than any other factor. Their home base, meeting place, and where much of their business will be done from.

Finding the perfect location can be overwhelming and hard. However, taking your business seriously and being willing to put in the time to search out a location that makes sense for your company can mean the difference between success and failure.