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Step Two: Begin General Screening of Possible Locations for Your Manufacturing Facility in Texas

Manufacturing | September 15, 2021

Once requirements for your manufacturing plant are defined, it’s time to take the next step. Begin by using the criteria you created to narrow the search. Start with those items that can be measured at a high (state or regional) level. This approach allows you to quickly eliminate areas that will not meet your company’s needs. Below are some common factors typically reviewed at this stage in the process. You can download a free General Site Screening Checklist here.

Transportation and Logistics

  • Begin with how you will ship and receive products into your facility.
  • Inbound Transportation: Consider the cost of inbound transportation to ship the raw materials to your new plant.
  • Outbound Transportation: Consider the cost of transporting your finished goods to your customers.
  • Transporation Availability: Does the new site have access to transportation services and infrastructure needed to accommodate your needs?
  • Customer Access: Is it necessary for your customers to visit you or you to visit your customers? Do you need air transportation to make this possible? What is the nearest airport that can meet your needs?

Labor

  • Labor is often the most significant cost associated with any business activity. It’s essential to understand the labor cost associated with any new facility.
  • Labor Cost: Make sure to understand the cost for your specific labor needs.
  • Labor/Management Relations: What type of labor environment exists in the new location? What kind of relationship do employees and management typically have for businesses in the new area?
  • Benefits: Are there any mandated benefits associated with the area? What benefits are typically offered by other companies in the area?
  • Population/Demographics: Is the labor pool growing or shrinking. Are there enough potential workers to meet the demand for your operation?
  • Skilled Labor: Does the area have a concentration of specified labor skills? Are there any labor training programs that can be leveraged to help provide the workforce needed by your company?

Utilities

What is the availability and cost for the following:

  • Electric Power
  • Natural Gas
  • Water
  • Wastewater
  • Telecommunications including broadband

Taxes

  • State Corporate Taxes
  • Property Taxes – real and Personal
  • Inventory Taxes

Real Estate

  • Availability of sites and buildings
  • Cost of real estate for various options – Lease, Purchase or build-to-suit

Regulatory Environment

  • Overall Business Climate
  • State REgulations
  • Environmental Regulations

Now that you have completed this step, you can quickly take any sites out of consideration that does to meet your needs.  This, in turn, will give you a shortlist of potential locations to consider. Now it’s time to take Step 3: Site and Community Deep Screening

If you have any questions as you go through this process, feel free to contact us (insert mail to link here) and let someone from our team guide you through the process. 

Step 4: Due Diligence and Incentive Discussion

Step 5: Acquisition and Execution

What Part of Texas is Right For you?