Manufacturers & Distributors ARTICLE -
On the Move:

What to Consider Before Relocating

Target Audience: Manufacturing and Distribution Companies, M&D Industry, Companies Considering a Relocation, Management Personnel, Strategic Decision Makers, Accounting & Consulting Firm Interest, Business Analyzers & Researchers, Financial, Operational and Logistical Decision Makers

Mike’s manufacturing company has been recording solid profits for the past several years. Orders are “through the roof,” and Mike has determined his business needs additional capacity. Problem is, there’s no room for expansion at his current facility. Mike thinks it may be time to relocate.

Whether you’re in Mike’s situation or you have another reason for relocating, there are operational, financial and logistical implications to consider.

Think First Before Relocating Your Business

Engage your management team in a brainstorming session to answer these significant questions:

• Why are you considering a relocation? Do you wish to be in close proximity to certain workers, customers, suppliers, natural resources, or infrastructure, such as transportation, utilities and technology? Do you simply need more space?
• What changes do you want to make as a result of a move? Do you want to lower operating costs? Establish a presence in a new market? Acquire updated equipment or facilities?
• What aspects of your operations do you want to keep?

Carefully assess your decisions. For example, moving to a city that has a larger pool of qualified workers may seem like a great idea. But if the labor costs in that city or state are higher, you could simply be trading one problem for another.

Create a master list of the major issues that are important to the relocation or expansion to help focus your priorities.

Hit the Road to Research Where to Relocate

Selecting a new location can require months of analysis. Ask yourself: What geographic areas are best suited to our business? Is it more cost effective to buy and renovate an existing building or is new construction the best approach? You may also want to consider leasing property rather than buying it.

Create a list of must-haves and deal killers for the project before launching a site search. Some considerations include:

• Usable acreage (including office and plant space, outdoor storage, parking space, and truck docking space),
• Zoning,
• Utility service,
• Access to interstates, roads and highways,
• Proximity to rail and port,
• Access to air freight service, and
• Ability or inability to relocate in a non attainment area.

Prevailing wages, unionization, educational opportunities and quality of life all are likely to play a role in your final selection.

Request Information From Development Personnel

After preparing your list of potential sites, submit requests for information to the economic development personnel of each community. Include the general nature of your business and scale of your operation.

Compare the information you receive with any data you’ve researched. Meet with several companies in the area that are similar to yours to discuss their experiences with the workforce, community, state and local government, utilities and others.

Consider neighborhoods, housing and other amenities that will be important to your relocating workforce. And be sure to speak with community residents to ensure that your business will be well received.

Make the Right Moves When Relocating Your Business

Relocating your facility can be a major undertaking. Extensive research can help you decide the best strategy for your business and help you create a plan for a smooth move that sets the course for continued growth.

Find out how our accountants and consultants can add value to your business. Email us or call us at 1 (888) 875-9770.

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