Selecting the right site is one of the most consequential decisions in any greenfield manufacturing project, shaping not just the facility’s immediate success but also its long-term viability and competitiveness. The process requires a holistic evaluation of factors ranging from the availability of a skilled workforce and robust community infrastructure to logistical connectivity and regulatory compliance.
Labor Pool and Workforce Considerations
When choosing a region for a new greenfield development, it's crucial to select an area with a strong labor pool, particularly workers skilled in automation and advanced technology, to provide sustainable operations. Equally important is the quality of local housing and community support, which is critical for attracting and retaining a stable workforce.
Logistical Advantages
Proximity to major transportation hubs — including highways, railways, ports and airports — is essential for establishing and maintaining efficient logistics, as well as minimizing transit costs. Evaluating the entire supply chain early helps assess its capability to support expansion and deliver smooth operations. Additionally, incorporating advanced automation into fulfillment and distribution systems can help reduce processing time, minimize errors and accelerate delivery timelines to support evolving customer demands.
Site Due Diligence
There has been a growing interest and investment by local and state governments and economic development entities to identify, assess and promote available industrial sites. Local governments, states and economic development enterprises frequently invest in the necessary due diligence and off-site infrastructure upgrades to transform undeveloped land into certified or shovel-ready sites. This preparatory phase can involve securing planning and zoning approvals, completing surveys, verifying title documents, conducting environmental assessments and soil analyses, and coordinating public infrastructure improvements. All of this is undertaken before any development activity commences.
By addressing these issues up front, much of the inherent risk can be mitigated, allowing interested end users to feel confident about their decision to locate in a new area prior to making any contractual arrangements for purchasing the property.
Zoning and Regulatory Compliance
Compliance with local zoning codes is vital, with particular attention paid to aspects such as noise, lighting and wastewater handling. Additionally, choosing a location with stable and predictable weather conditions can help minimize operational disruptions.
Identifying regions that offer favorable tax incentives — such as valuable tax breaks or subsidies — can notably decrease project costs. However, it is crucial for companies to thoroughly examine any associated clawback clauses to avert unexpected liabilities, and to confirm the availability of extension options should their project schedules change.
Early evaluation of potential site locations, labor availability and other critical factors enables better decision-making and fosters effective collaboration with key stakeholders. Developing a high-level understanding of expansion costs, scope and schedule from the outset allows companies to better guide their budgeting and planning efforts. Initiating pre-capital expenditure studies and modeling efforts as soon as possible further clarifies the project’s timeline and scope. Before even beginning the site search, it is imperative to understand the budget, logistics, market dynamics, and the locations of suppliers and customers, among other key considerations.