05
Mar
Site Selection is not a Simple Matter
Taxes are the next item to consider when selecting a lot.
It’s truly incredible the difference in tax rates even for muinicipalities in the same metropolitan area. It’s not unusaula to find the rate is doubled in some cases, which can be a nasty surprise to your annual operating costs if not realized before the site purchase is made and your site built.
Also, don’t forget to look into the potential for tax holidays and discounts. Many areas are looking to attract industrial development to build their taxbase and bring jobs for their people. So ask about these as they can help to improve the overall cost efficiency of your operation.
The final two site selection factors revolve around proximity and we will now conclude by reviewing these.
Proximity to both utilities and highways are the final points of discussion for this site selection article.
It doesn’t matter if you’ve met all the other site selection factors discussed if you have to pay hundreds of thousands to get services built out to the lot you’ve just selected.
So do your homework and make sure that electricity, water and sewers sufficient for your needs are present and at or near your lot. If not you could have a large over budget expenditure and another potential delay.
Also make sure that the electricity for high voltage DC users is high enough to run all the equipment you plan to run on the site.
Proximity to the highway is the final item to be aware of in the site selection matrix. If the site you select is all the way across town from the highway, it may not really be the bargain it seemed when all the carriers want to charge you extra to get to your location to drop and pick-up trailers.
So as stated in the introduction, site selection is not just a simple matter and I hope these pointers will assit you in avoiding some of the pitafalls which await the inexperienced person tasked with selecting the site for your newest logistics operation.
Jeff Ashcroft
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Ashcroft Communications International Ltd.
March 5th, 2007 at 3:36 am
[...] Advertisement « Site Selection is not a Simple Matter The Logistics Synergy Revolution » 05 Mar [...]
May 10th, 2007 at 4:40 pm
[...] Last but not least once you’ve finally settled on a specific area for your operation is the selection of which site in that area. There are many factors at the site level which need to be analyzed and addressed otherwise you could again experience very large “surprise” costs. These aspects of decidin the lot/building for your operation will be discussed in the article Site Selection is Not a Simple Matter, the next article in this series. [...]