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Location analysis

Under increasing competitive pressure on a global level, the issue of location is increasingly important for industrial companies with respect to securing long-term competitiveness. The selection of a site when establishing, expanding, or relocating a business is one of the most fundamental executive decisions. Given the high investment costs due to land and construction prices, it is essential to think things through carefully. The long-term cost and revenue structure of a business is strongly influenced by the choice of location. Ingenics AG is a professional and experienced partner for location analysis, providing support with a methodical approach and an international branch network.

Location analysis involves checking the requirements of specific industries and companies against the prevailing site conditions. Given that every company has different requirements in terms of what makes a location suitable, the first step is to identify the strategic objectives of the new site. Here the overarching strategy for the global production network is analyzed and further developed, if necessary. On this basis, specifications for the new site can be distilled.

Site selection – a fundamental business decision

There follows a detailed factory needs assessment in terms of energy, land area, and emissions, which then makes it possible to begin a rough analysis by country and region. The selection is always narrowed down by global exclusion criteria and minimum local requirements. Next, a detailed analysis takes place, focusing on infrastructure, the local labor market, and supplier structure. After this, a financial evaluation is carried out, paying attention to capital value, logistics and personnel costs as well as development funds for the new site as key decision criteria.

Depending on the initial situation and the assumptions made by the company, the analysis performed by Ingenics AG can also be limited to selected real estate and a qualitative and financial evaluation of this. If the project in hand is a factory extension, existing processes are analyzed and the plant is effectively adapted to accommodate the new market needs. The primary focus here is material flow optimization and reduced cycle time.

Conclusion

The overall objective of site analysis is to select the optimal location in terms of feasibility, economy, and future sustainability so that you are in the best position to achieve your strategic goals. This entails studying and evaluating a large number of factors, always taking individual customer requirements into account.

Ingenics AG has already supported many companies with the task of site analysis and selection, so it can offer decades of experience in this field. With an extensive international network of branches, Ingenics AG has a presence at the most attractive production locations in the world and has all the credentials needed to support you with your plans for to become more international.