Choosing the right Johor manufacturing factory location is important for a business, as it will affect the business of the factory. It will be hard to sell or move if you choose the wrong Johor manufacturing factory location.
There are many things to take into consideration when you are looking for a new manufacturing factory location. Not only you will have to think about the current situation but also the future expansion plans if you have any. It can be very expensive to rectify if you find an inappropriate manufacturing factory location.
Besides that, your manufacturing factory location should have enough space for your machinery and equipment and also the process of production. The environment of the location will also affect your production and distribution costs.
Your manufacturing factory location will affect the quality of products and the process of production. Before buying or renting the factory, there are a few factors you will want to consider. We will be discussing this in this article.
Right Manufacturing Factory Location #1 – Local Geography and Climate
When choosing the right manufacturing factory location, the first thing you will want to consider is the local geography and climate. Is the manufacturing factory location you choose in the mountains or near the coast?
When considering the local geography, things you will want to include are the topology, drainage, and soil conditions. All of these factors will have an impact on the cost of construction. The climate will have various impacts on the factory based on the different topologies and large open spaces. Ensure that your factory is in accordance with the natural environment.
Right Manufacturing Factory Location #2 – Existing Buildings vs. Greenfield Sites
Another factor to consider when you are looking for a manufacturing factory location do you want to get an existing building or invest in new construction on a greenfield site. Choosing an existing building is a suitable solution as this is a fast approach and a cheaper option than building a new factory. But you will want to take note that the layout of the existing building may include outdated utilities and features which will affect your production process.
You can seek an independent consultant, such as an engineering/procurement/construction contractor (EPC) or architect, to help you conduct a diligence process and analysis. They are able to give you views on any necessary site remediation and/or building modifications against greenfield construction.
Right Manufacturing Factory Location #3 – Infrastructure
When choosing the right manufacturing factory location, access to utilities and transportation is another factor you will want to consider. Not to forget about their costs.
For transportation, you will want to consider the cost for raw material deliveries and also the outgoing finished product distribution. Traffic congestion is also another factor that will cause inconvenience to workers, suppliers, and distributors. It would be best if there are alternative options to get to your factory location.
You will want to review the factory’s utilities, such as communications, energy, and water. It will help if you develop a cost estimation. You can based on existing data from similar facilities estimate your cost, or you can hire an experienced consultant to do it for you. You can engage power companies and other utilities in the early process to assess the availability.
Right Manufacturing Factory Location #4 – Environmental Conditions
You will want to consider the environmental conditions when you are choosing the manufacturing factory location. You will want to consider factors such as a floodplain, seismic zone, or is it a region with high humidity.
These few factors can have a great impact on your factory. You won’t be able to see these through a site visit, you may want to engage experts to provide a unique insight and perspectives. Another factor you will want to consider is the industrial facilities nearby the area. Will they emit pollution or odors that impact your facility? You will want to consider if your company fits in the surrounding communities.
Right Manufacturing Factory Location #5 – Expansion Potential
You wouldn’t know when you will need to expand your factory. Another factor to consider when finding the right manufacturing factory location is the potential for expansion. When you build a factory, you will want to ensure that it is at the right location and you will want to see the future of your company. There may be an expansion and you will want to ensure that there is enough space.
If the land you bought has limited space, you will find it difficult to expand the factory in the future. You may have to find another location to expand your business. You may need to build the factory starting from scratch which will take time and cost.
Right Manufacturing Factory Location #6 – Local Labor Availability, Wages
The local labor availability and wages are other factors that you will want to consider. You will want to have a labor market analysis regarding the labor availability in the market with the right skill sets. Do some research on the area’s unemployment rate, number of workers, and their wage ranges and benefits packages.
You will want to see if these occupations have any significant growth or a decline? There will be available labor poor if there is a decline. You can reach out to universities and community/technical colleges to find out if they have relevant education, training, and apprenticeship programs.
Right Manufacturing Factory Location #7 – Codes And Regulations
You will want to know about the codes and regulations when you are looking for a manufacturing factory location. The code and regulation will need to be carefully examined. The building will be designed and constructed for a different use from an existing building. It will need to be reviewed with legal support. Take notes on new codes or pending regulations, as this could impact factory processes and equipment used.
If you are intending to buy a manufacturing factory in Johor, the above tips will give you an idea of what you should take note of. It is very important to choose the right manufacturing factory location to ensure your business goes smoothly.
