Positioning for Success: Selecting the Ideal Location for Your Business

Choosing the right site for your client’s business is crucial for investors seeking to establish a new location or expand existing operations in the United States. Site selection involves identifying the optimal location that meets most of their criteria. While the U.S. offers a broad range of opportunities, not every location will fulfill the specific needs of your client’s operations. With so many options available, it’s easy for all parties involved to feel overwhelmed. However, a well-chosen location can help reduce initial and operational costs while supporting long-term growth.

Identifying Your Needs

When beginning the site selection process, it is essential to identify the specific requirements of a project. Developing a clear list of these requirements and ranking each one lays the foundation for the entire process. This includes non-negotiable parameters (critical factors that must be met for the project to succeed) and negotiable parameters (factors that offer some flexibility).

Additionally, consider your client’s future needs, such as potential expansion or the introduction of new products, to ensure that the selected site can accommodate long-term growth. This approach will not only expedite the site selection process but also ensure lasting success.

Here are some examples of key parameters to focus on:

• Budget: The total capital investment the business plans to allocate for the project, which can be broken down into purchasing, development, and operating budgets.
• Geographical Location: A comprehensive view of where your client wants to position their project in the U.S. This includes proximity to suppliers, customers, resources, or competitors. Depending on the industry, your client might prioritize being near raw material suppliers or major ports, or they may value closeness to markets or distribution hubs.
• Infrastructure: The demand for utilities, transportation access, and land use. Does the business require substantial energy capacity, water, or waste management services? Will the company build its facilities, or is it open to build-to-suit or existing real estate options that could save time and upfront costs?
• Logistics: Access to the logistics network and infrastructure is crucial. Some projects require rail access as a non-negotiable parameter, while others rely primarily on road transport. Depending on the nature of a business, proximity to major interstates, ports, or airports could significantly impact the site choice.
• Labor Force: Consider the number and skill set of the workers needed for the project. Does it require a specific, highly skilled existing workforce? Additionally, think about the wage expectations for those positions.
• Timeline: How quickly does the site need to be operational? For international investors, permitting and construction times may be longer than in their home country. Setting a realistic timeline upfront will minimize unexpected changes in plans and keep projects on track.

McGuire Sponsel’s Location Advisory Services team helps clients navigate the site selection process and manage post-project reporting to help maximize their benefits.