INCENTIVES, LAND COST AND GOVERNMENT SUBSIDIES
Incentive packages are often offered by local communities and the Government to attract businesses in certain areas that need economic growth. Some places even offer loans, grants, expedited permitting, tax abatements, very low land costs, etc. But they may not always be the best option for the long term because most of them come with strict conditions like job creation quotas and investment obligations that, if not fulfilled, may attract penalties. However, it is always good to explore such options as the opportunity may be right for some businesses.
How quickly a facility becomes operational can be very important in determining the success of a business in the beginning but its not the only thing to consider. Real success of a business however is a project’s long term performance and its growth. It is very important to know if the site you are looking to build on can physically accommodate future expansion and targeted growth. Always consult in detail with your building company about your plans for not only the short term, but also the vision for the future.
The access to transportation and utilities as well as their costs are very important to determine because they will ultimately affect the production and distribution costs. Factories set up in places with poor transportation access sometimes delay production and affect efficiency of the business. Analysing a proposed industrial factory’s communications, energy and water needs, and supply sources are also equally as important.
Logistics is another important factor to consider because it relates to suppliers and end-users. Understanding the access to sources of raw materials, suppliers, distribution centres, and customers is very important for any production business. The location of the factory plays a vital role in addressing the above issues.
LOCAL LABOR AVAILABILITY AND WAGES
Availability of a workforce with the right skill sets is vital for any manufacturing factory to run efficiently in the long run. That is why a labour market analysis is important before setting up a factory to a particular location. It is always a good idea to contact local economic development groups, technical/community colleges, vocational schools to find out if they offer relevant training programs and partner with local employers for the development of the specific workforce in your specific location.
CODES AND REGULATIONS
The regulatory environment can be different according to places. So the codes and regulations of your particular location must be carefully examined. Environmental regulations today are being taken very seriously, not only at a Government level but also from the community level. From building and fire codes to health & safety, all the regulations must be thoroughly examined.
A RELIABLE CONSTRUCTION PARTNER
Choosing the right construction company as your construction partner will not only benefit you in terms of cost and efficiency but also in so many other ways. A construction company with a proven track record delivers your project on time and assures you that your build is being handled in the most efficient way possible without having to worry about surprise cost & time blowouts to not worry about surprise overheads, giving you the right advice to help you save time and money along the way. It is recommended that you hire a single building contractor that can deliver all your construction needs at once. Hiring multiple teams can lead to miscommunication and lack of cooperation, ultimately affecting your plan.