How did you or your family choose your home loan costs.
Of course not the price we pay for low cost housing is much higher than the rent or mortgage.
Low cost housing may mean small rooms and closets outdated design and architecture.
Living in an unsafe neighborhood poor schools for our kids and an endless string of expensive repairs.
Our bank account suffers our nerves suffer and perhaps we may even pay with our time low cost homes
and apartments are often located in inconvenient locations.
So getting there is not only difficult for you but also for transportation services and restaurants
hospitals grocery stores schools in your workplace may be far away.
If your dream home is in the middle of nowhere you may actually wish you’d paid more for a lesser home.
So it goes with choosing a location for a manufacturing facility choosing a location based on cheap
land cheap labor and low taxes may mean bad infrastructure more quality defects and an unsafe environment
where employees and inventory are in danger.
Why is this place so cheap in the first place.
Maybe no one else is willing to locate in that area.
That means suppliers may be very far away in transportation companies probably don’t normally service
It’s also likely that your customers are far away too.
Logistics cost just got way higher.
And every time the cost of fuel goes up you’ll probably regret your location decision.
In our example of finding a new home most of us probably only imagine moving to another part of town.
Another part of the state or province maybe another part of the country.
Not many of us consider moving out of the country.
Companies that consider relocating their own manufacturing facilities out of the country are said to
be making an offshoring decision.
Imagine how difficult that decision must be.
A company could relocate almost anywhere on earth just like a move that big might cause you some stress.
So too will stress a top executive for you.
You might be concerned with making friends staying in touch with your family at home finding the food
drinks and household items that make you feel comfortable learning the language and customs so you can
connect with others and also understanding what it takes to advance in your new office.
The executive they probably worry about hiring motivating and connecting with their new employees.
Finding suppliers and logistics partners that are reliable keeping the company connected to the Home
Office while also building a relationship with the government business community and their new customers
abroad relocating moves you physically but it also moves you emotionally.
It takes you away from what’s comfortable and forces you to find a new way of doing things.
Moving is difficult but most often when we move we move because we see opportunity.
When companies choose to expand and open offices around the world or when they choose to offshore and
move their manufacturing operations to a new country they are taking a big risk just like we don’t risk
our families comfort to save a few bucks.
Companies shouldn’t seek out the low cost option just like our moves are often tied to promise for a
So too should a company choose a location on the overall opportunities available.
So think about your favorite company or think about where you work right now.
Why did they choose the location where you work today.
What are the good things about this location.
Now let’s think about the downsides of this location.
Think about what would happen if you moved this facility to another part of town.
What would be better or worse.
How would if we moved to another part of the country would you move with the company.
Why would it make any sense to move this company to another country.
If so what would be the hardest part of the move for the company.
Chances are you’ve probably moved a few times in your life.
Use those experiences to help your company choose a location that will help it maximize its opportunities.