Top Five Tips for Implementing a Site Selection Plan for Industrial Consolidation in 2025

As the industrial sector navigates inflationary pressures, supply chain shifts, and the rising cost of capital, many companies are consolidating facilities to streamline operations and reduce overhead. However, executing a successful consolidation requires more than just finding a building or a piece of land; it necessitates a deliberate, well-informed site selection plan designed for long-term success.

Here are five key tips to guide your industrial consolidation strategy in 2025:

1. Define facility requirements early and let operational data lead

Start by identifying what your future facility must support, including square footage, dock configuration, ceiling height, utility specs, etc. These requirements should be based on real-world information, including equipment sizes for current product lines, utility bills, and other existing data.

Getting specific early is critical. For many industrial projects, certain site criteria can significantly limit the number of viable locations. In some cases, a requirement may necessitate expanding the initial search area, so knowing your non-negotiables upfront helps you focus your site selection strategy efficiently.

2. Evaluate your entire supply chain, not just one product

It’s common to let a flagship product line dictate your facility search. But this can create inefficiencies across other lines. Instead, take a holistic view of inbound and outbound logistics across all SKUs. The optimal location often shifts when you model total supply chain cost, especially when raw materials, packaging, and distribution each pull in different directions.

Understanding your full logistics footprint helps pinpoint the true “center of gravity” for your operations and avoids decisions that solve one problem but create others.

3. Resist short-term incentives that distract from long-term fit

Upfront incentives and move-in-ready space can be attractive, but they shouldn't override core location strategy. We’ve seen companies commit to suboptimal sites because the short-term economics looked good, only to face long-term issues like labor shortages, inadequate infrastructure or limited scalability.

Don’t overlook sites that require more investment or lead time but offer greater long-term value. Pay special attention to the future workforce pipeline, available land for expansion, and utility infrastructure. Consolidation is a long-term play, and your site strategy should be too.

4. Consider an existing building search—market conditions favor buyers

With vacancy rates rising and speculative development peaking in recent years, the U.S. industrial real estate market has undergone a shift. For the first time in over a decade, buying or retrofitting an existing facility is often more cost-effective than new construction, especially for companies that can work within standard shell specs.

Consolidation projects often face pressure to control costs and accelerate timelines. In today’s environment, a building search can provide both. Retrofits allow faster speed-to-market, fewer permitting delays, and in some cases, stronger negotiating power with landlords motivated to sell. 

As you evaluate options, consider existing buildings that also offer expansion acreage. This can provide the flexibility to grow over time while still reaping the time and cost advantages of a building-first approach.

5. Gather the right team

Effective consolidation blends operations, HR, real estate, logistics, and finance from the start. Each group brings a vital lens—labor availability, site readiness, incentives, tax exposure, and more. Assemble the team early and ensure alignment across functions.

Pair that with strong market data. Industrial site readiness, infrastructure availability, permitting timelines, and labor trends all vary by region. The right tools and the right team can help you compare markets apples-to-apples and avoid hidden pitfalls.

Final thoughts

Industrial consolidation is a complex and high-stakes undertaking. But with the right team, the correct data, and a plan that prioritizes long-term operational fit over short-term convenience, you can reduce risk and position your footprint for the future.

Need help identifying the right market for your industrial consolidation? Our team supports manufacturers and distributors with tailored, data-driven site selection strategies. Let’s talk.