When you are expanding your manufacturing operation and looking for a new location, there are a lot of key factors to consider. Making the wrong choice about location can increase your costs, decrease productivity, and damage your bottom line. So, you mustn’t rush into the decision. Whenever you view a new location, always think about these major factors.
The most obvious thing to consider is the cost. Naturally, you need a place that you can realistically afford because if the monthly payments are too expensive, all your profits disappear. The problem is that when people are calculating the cost, they forget to factor in the running costs too. Even if the rent or lease on a place is cheap, that doesn’t mean it’s affordable. If it is an old building with poor insulation and outdated wiring, the utility bills will be through the roof. Old properties require more repairs too. Make sure that you ask about the running costs and consider them when making your decision.
Climate has a huge impact on manufacturing, so you need to know about the average temperatures and the likelihood of extreme weather. If it’s very hot and humid, you will have issues with moisture collecting in machines and damaging them. You can alleviate this issue to some extent by fitting an instrument air dryer package. Putting instrument air dryers on machines that use compressed air will help a lot, but there are other heat and humidity-related issues to tackle.
Storing materials in extreme temperatures, whether hot or cold, is always a challenge. Temperature fluctuations make it even harder. You will need excellent insulation in your new location in a changeable climate.
Finally, you should think about the impact of extreme temperatures on your employees. It’s hard to concentrate if you are incredibly hot or the factory floor is cold. Ideally, you should find a location in a more temperate climate or take steps to manage temperature issues.
How easy is it to get to the new location? If it’s in the middle of nowhere, you will have trouble hiring new employees because nobody wants to do a big commute like that. A location that is not easily accessible also causes problems with deliveries. You will likely pay more, and that comes out of your profits. On the other hand, the most accessible locations will be more expensive, so you need to find good middle ground.
Finally, how secure is the location? What is the crime rate like in the area and do surrounding businesses have a lot of trouble with burglaries or vandalism? Check whether fences are protecting the building and if there is CCTV installed already. You can take some of these security measures yourself, but it makes life easier if they’re already in place.
Finding the ideal location for your manufacturing operation is so important. By staying ahead of the problems, you can avoid unnecessary issues further down the line. However, never decide without first considering these factors.