Challenges
Most companies do not select locations for new facilities very often and even the largest companies do not usually have in-house specialists for location selection. Yet choosing a location is a strategically crucial decision that can impact a company’s performance for years to come. Selecting the right location can be challenging and the risks and consequences of making the wrong decision are significant.
The following are just a few examples of things that we have seen go wrong.
The chosen location does not meet key requirements for the new operation (for example, workforce or utilities are not available in sufficient quantities or at the right costs).
Important location factors are overlooked, leading to cost-overruns or project delays.
There is internal disagreement about the importance of individual location criteria or the choice of location and site.
Not enough time is allocated to the location selection, creating pressure that affects the quality of the analysis.
Reliable data about key location factors is not available or the data is inaccurate or misleading.
The analysis is inconclusive and does not provide a reliable basis for choosing a location.
Governments do not honour commitments regarding infrastructure, incentives or other support.
Cultural differences are overlooked or misunderstood in international projects
Challenges from third parties or other stakeholders cause the project to be held-up.
These are familiar challenges that can make location selection riskier and more complex than it appears. They are often the reason why we are called in to help put projects back on track.
Our approach and services are designed to anticipate and resolve these and other potential challenges.
APPROACH
