Amazon set off a buzz around the country last week with their announcement of placing a second headquarters somewhere in North America. Cities across the U.S. are strategizing on how to come together to meet the request for proposal regarding Amazon’s required critical location factors.
Location is one of the most important decisions a company makes. While made infrequently, location selection has an impact on fixed and variable costs, including taxes, transportation, utilities and labor. Once in place, it is difficult to change. When choosing the optimal location for a facility, a company must consider key factors, such as supply chain, logistics, compatibility of the local labor force, political landscape, tax structure and real estate. In Amazon’s case, for example, they have requested land near an international airport, major highways, and a public transit system, in a metro area with at least one million people and a stable business environment. It might, therefore, be the case that they have decided to settle for a new location somewhere like Los Angeles. For instance, it is relatively easy to find trucking companies in los angeles that would be more than happy to take on the logistics side of running the business.
While there are many more factors a company needs to consider in addition to the ones listed, these considerations are some of the most commonly overlooked. To complicate the matter further, each type of facility has a different list of requirements and prioritization of key factors. Finally, and most importantly, the decision-makers must consider the business’s unique mix of equipment, infrastructure, processes, procedures, and especially people – the most critical element in making a business successful. Navigating the highly customized and complex landscape of location strategy is crucial to a company’s short- and long-term success.
There are many situations when companies should consider utilizing location strategy services. Other events, besides a move or addition of a new facility (like Amazon), where location strategy can add value to the company are:
- Expansion or Consolidation of Operations or Product Lines
- Adding New Jobs
- Capital Investment
- Technology Upgrades & Initiatives
- Research & Development
- Relocation of Existing Equipment
- New Products or Services
- Lease Renewal
- Workforce Productivity Issues & Opportunities
Evergreen’s Location Strategies team assists private and public companies with short and long term location strategy, supply chain optimization, and site selection. The strategy involves structuring and negotiation of various economic incentives (i.e. tax credits, abatements, grants, loans, etc.) with state and local governments, agencies, and authorities, as well as public/private programs and/or quasi-government entities. These offerings are used as enticements for capital investment and job creation.
Our time-tested site selection process uses first party data and in-depth analysis to identify ideal facility locations for our clients. We provide our clients with data-driven confidence knowing that their location is optimal for all of their business needs including supply chain, logistics, cost, tax structure, workforce, and return on investment. With our client-focused approach to Economic Development Incentives we negotiate holistic incentive packages that are valuable and relevant to our clients. Because we are committed to the success of our clients, we implement the secured incentive package to ensure full value is received. We pride ourselves in having the flexibility and expertise to work across all industries and facility types. Our national reputation allows us to work effectively in any location across the country.
A company doesn’t need to be Amazonian in size to garner measurable value from location strategy services. Any organization going through significant changes can benefit from the incentives offered by local, regional and/or national entities, maximizing the positive effects these strategies can garner.
Contact us at firstname.lastname@example.org for more information on our Location Strategies Services.