Lowering business costs is at the top of everyone’s list and a recent article by Dana Olson, President and CEO, Ecodev in Area Development Online points out how relocating to a community that better suits the needs of your business may help improve profitability. Olson states, “Companies that relocate can lower their operating costs by 20% – 30%”. While moving corporate headquarters might be a daunting task, simply relocating production can be just as important to cost savings.
Olson outlines five signs that relocation might be a good idea:
- Facility upgrade or consolidation. Looking beyond your own backyard can lead to opportunities that may support your business needs.
- Hiring and retention. Finding a community that offers a specific workforce to suit your business labor needs can add to cost savings. Partnering with local colleges can make the training and recruitment process easier with a qualified workforce.
- High operating costs. Cash incentives and grants along with lower payroll taxes and unemployment insurance rates in a community can all be beneficial when trying to keep operating costs down.
- Proximity to customers. Cutting shipping and transportation costs by relocating distribution to a central location can make a big difference in the bottom line.
- Taxes. Need we say more.
After the decision to relocate has been made, there are a few more match making guidelines to follow.
- Evaluate operating costs. Compare operating costs at the present location to the location you are considering.
- Assess labor needs. As stated above finding a community that offers the right labor pool is essential.
- Look before you leap. When site selecting, take geographic location, labor demographics and infrastructure into consideration.
- Make a site visit. Visit the location and meet with local officials to see if the community is a good fit for long-term growth.
The Portage County Business Council serves as the Economic Development Partner for Portage County, WI. If your business is considering relocating, please contact us at 715-344-1940 for the latest information regarding available sites and buildings, as well as business and industrial parks.