Five To-Dos for Successful Project Planning in Site Selection

The domino effect of a poorly chosen industrial site can ripple through operations for decades, affecting everything from labor costs to operating expenses. Site Selection Group, a full-service location advisory, economic incentives, and real estate services firm, has facilitated capital investment projects across the country and has seen firsthand that robust project planning is not merely advisable; it is the cornerstone of a successful site selection strategy.

What is project planning?

Project planning in industrial site selection is a systematic process that defines the objectives, scope, tasks, resources, and timeline required to successfully identify and secure an optimal location for a new manufacturing or distribution facility. Drawing parallels to the generally accepted project management framework as defined by the Project Management Institute, this phase follows initiation and precedes execution. 

The project planning phase takes the goals established in the initiation (or pre-planning) phase and translates them into detailed steps and actionable insights to inform and guide the site selection process. While the initiation phase establishes whether a project should proceed, the project planning phase details how and by whom the site search will be conducted.

Five to-dos for project planning in site selection

While there is a long list of tasks that should be included during the planning stage, the following five are critical to-dos that should be prioritized for successful site selection.

1. Assembly of the Proper Project Team

Including key personnel across the company is paramount to ensuring that factors are appropriately considered and weighted. Representatives from real estate, operations, finance, legal, human resources, and other key executives should be assembled to create a cross-functional project team. While some of these team members may have been involved in earlier stages of the project (i.e., initiation/feasibility analysis), the proverbial site selection lineup should be bolstered during the planning phase to ensure that no business functions are overlooked.

2. Clearly Defined Project Description

Accurately defining factors such as estimated capital investment, employment schedule and wages, project phasing and timelines, etc., is important for a variety of reasons, not the least of which is demonstrating legitimacy and generating excitement among state and local economic development and real estate representatives. A poorly defined project often leads to a less-than-enthusiastic response when identifying suitable site options and attempting to negotiate economic incentives. Simply stated, if key stakeholders in the target geography do not understand or do not believe in the project's feasibility, they are less likely to support it.

3. Comprehensive Understanding of Real Estate Needs

Before canvassing a target geography for candidate sites or buildings, it is crucial to have a thorough understanding of the inputs required to successfully operate the new facility.  These include, but are not limited to, site size, utility demands, logistical and transportation needs, etc. 

It is common for companies to either over- or under-estimate these needs, which leads to several pitfalls that could otherwise be avoided. For instance, over-estimating acreage or electric needs can drastically reduce the number of viable sites for a project. On the other hand, underestimating these needs may result in costly or time-consuming setbacks downstream in the process, if a project team must take steps back.

4. …And Comprehensive Understanding of Workforce Needs

The war for talent has been underway for quite some time now, so it should be no surprise to companies seeking to establish a new location that a thorough understanding of their labor needs is critically important to ensuring not only a successful operational launch, but also a sustainable operation for decades to come. While it can be tempting to delay a detailed staffing plan until an optimal location is identified, a lack of detail and clarity surrounding specific skillsets, both now and for future project expansions, can be a significant detriment to site selection projects.

5. Early Engagement with Construction Partners

Delayed collaboration with design, engineering, and construction resources is a common mistake that can be easily avoided in the site selection process. While the scope of work for these respective parties may not officially commence until later in the process (e.g., site visits), the procurement and alignment of these resources upstream ensure a seamless transition and prevent schedule delays. Josh Bays, Managing Partner at SSG, explored this tactic in a previous blog and stated “Procuring construction resources before formal site visits enables companies to run site-specific design and engineering concurrent with real estate and incentive negotiations, get a head start on the permitting process, have their provider involved in due diligence efforts that will eventually impact construction, as well as a host of other time-saving advantages.”

Conclusion

The site selection process can be daunting, but partnering with an experienced and trusted location advisor can help mitigate risk and ensure that all relevant factors are appropriately considered. Site Selection Group regularly assists clients in planning and executing site selection, integrating seamlessly with a company’s project team to ensure the optimal location is identified and secured.