What Is the Site Selection Process?

The site selection process for a manufacturing plant involves evaluating as many potential sites as possible and analyzing their benefits and drawbacks so that you can make the best choice. Regardless of the type of manufacturing you do, you must follow the right criteria for selecting a manufacturing site to avoid future complications that come with setting up your factory in the wrong place.

If you’re planning to set up a factory in Mexico, you should take advantage of the site selection services for manufacturers offered by a professional and reputable firm like Tetakawi. Of course, even with a solid local partner to rely on for advice on where to find the best site for your factory, you should have a good understanding of everything the process of selecting a location for a manufacturing plant involves.

Steps to Finding a Site for Your Manufacturing Facility

It’s important to assess the needs of your manufacturing facility before you begin searching for a site. Once you establish the needs of your manufacturing business, you can more easily identify a location that will fulfill those requirements.

If you choose a site before you establish your business needs, you could end up compromising important aspects of your operations (such as design and scalability), especially if you pick a site with limited space and expansion options. Your site selection process should include three major steps: assembling your site selection team, evaluation and identification of the site, and acquiring the site.

Assembling a Site Selection Team

This step is critical because it directly impacts the success of the entire project. If you choose the wrong team, you’ll end up with the wrong site, which will create massive problems for your business.

Fortunately, if you’re setting up a factory in Mexico, you can rely on a reputable and well-established local partner like Tetakawi for your site selection needs. Our company boasts an experienced team of professional site selection experts who are well-versed in the various areas of Mexico that can accommodate efficient and cost-effective manufacturing operations.

With Tetakawi, everything will be handled by experienced and reliable local experts who will save you time and money, eliminating the risk of picking the wrong site. Share your project needs and expectations with our local team so we can select a site that aligns with all of your business needs.

Evaluating the Site

Evaluating sites involves visiting the actual properties and doing due diligence. This can take some time to do correctly, depending on the type of site you need.

The evaluation process is guided by several key factors, including the type of business you have, the type of site you need, your budget, the sources of raw materials, the sources of labor, the local infrastructure, and more. However, the major factor that will determine where you set up your factory is the cost considerations can influence decisions about the facility location because they affect virtually every aspect of your business.

For instance, you must consider the cost of setting up the facility, transporting raw materials and final products, salaries and employee benefits, among other aspects. You shouldn’t establish a factory far away from your source of raw materials, workforce, storage facilities, and distributors because you’ll end up paying more for transportation.

You also need to consider the most cost-effective option when deciding between setting up a factory in a remote area versus renting an existing building near a major city or town. In addition to acquisition costs, you need to consider any environmental issues associated with the site and operation, local codes and regulations, and security.

Acquiring the Site

Once your team has identified a site and you’re fully satisfied with the choice, you can begin the process of acquiring the site, which involves paying for the property and transferring ownership.

This process will go more smoothly if you have the assistance of a local partner like Tetakawi, as we are aware of all details involved in acquiring property in Mexico as a foreign investor. Working with a trusted local partner reduces the risk of being taken advantage of by scammers posing as genuine property owners.

Final Thoughts

With professional support from a local partner that is familiar with the nuances of manufacturing in Mexico, you can easily avoid the setbacks often experienced by foreign entities when selecting offshore or nearshore sites for their facilities. With Tetakawi, you’ll get first-hand insights into the best available sites!


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Podcast: Choosing Wisely: Strategic Site Selection in Mexico's Manufacturing Boom -> Listen Now!