SITE SELECTION MISTAKES

The main job of corporate executives, owners of a partnership, and

sole proprietors is to make decisions. The selection of a site for

relocation can be the most important decision a leader will make. We

present here a list of the most common mistakes made in site selection,

followed by a checklist covering the critical items that should have

been investigated during the site selection process. After completing

the checklist and collecting information on anything that was missed,

you must make the final decision to relocate.

A nationwide survey of economic development professionals asking them to list the most

common mistakes made by relocating companies was conducted recently. Their responses, ranked

from most to least common, are listed below.

The common mistakes made by relocating companies include:

1. Not allowing adequate time to investigate all potential sites in

an area;

2. Too concerned with initial costs, such as land and buildings,

without fully considering other costs;

3. Making a final site selection without fully taking advantage of

all economic development services;

4. Failure to consider the quality-of-life factors that are important

to attracting and retaining skilled employees;

5. Failure to consider all environmental problems and regulations:

6. Failure to consider quality and availability of housing in the

area;

7. Failure to consider all available incentives and tax relief

options;

8. Failure to consider whether local housing costs are compatible

with salary levels of employees;

9. Failure to investigate all applicable zoning regulations;

10. Failure to consider provisions for possible future expansion;

11. Failure to fully investigate the tax structure, tax rates, and

impact fees of the area;

12. Failure to consider the availability and cost of management,

technical, and scientific employees in the area;

13. Failure to consider the needs, desires, and financial situations

of employees who would be transferring to the new site;

14. Failure to consider the availability and cost of energy supplies;

15. Failure to consider whether sewage treatment facilities are

adequate for the proposed operation;

16. Failure to consider whether airport services are accessible and

adequate;

17. Failure to consider availability and costs of semi-skilled and

unskilled labor in the area;

18. Failure to consider whether port and waterway facilities are

available and suitable;

19. Failure to consider whether railroad services are accessible and

adequate; and

20. Failure to consider whether highway access is adequate.

The rank ordering of the items above is a bit deceptive. Number 20 on

the list is an exceptionally infrequent mistake according to the

completers of the survey, but it does happen. By far, the biggest mistakes

made are the first three on the list. These three critical mistakes

appear to be caused by time and money factors — “get it done, and get

it done cheaply.” Overcoming mistakes requires adequate planning and

research, and projecting ahead to changes in the area that will affect

future costs. Both planning and research have been covered in detail

in the previous chapters. However, this does not mean that something

could not be missed.

There are five classic problem-solving steps in the site selection

process. They are:

Step 1: State the problem.

Step 2: Identify alternatives.

Step 3: Test alternatives.

Step 4: Select best alternatives.

Step 5: Implement the alternative.