When a company makes the strategic decision to relocate, expand or
consolidate operations into a new location, it faces challenges and decisions
that are beyond the scope of the normal
conduct of business.
Effective site selection is a complex
undertaking that requires extensive data
analysis, planning and execution for a successful outcome. To safely navigate in
these waters, many companies choose to
engage a location advisory firm.
“The stakes are high and so are the possibilities for less-than-optimal execution,”
says Dolores Seymour, managing director
of Industrial Services at Colliers Arnold.
“An experienced location adviser can
guide corporate executives in making logical, defensible and successful decisions,
with the assurance that they have not overlooked incentives worth millions of dollars
to their bottom line.”
Smart Business spoke with Seymour
about how a location adviser can design
and implement a relocation plan and how a
company can remain focused on core business issues throughout the process.
What crucial areas of relocation can be overlooked without professional advice?
Government incentives and tax savings
can be overlooked or not realized to their
fullest extent, leaving money on the table.
Demographic data can be misinterpreted,
leading to confusion at best or a bad decision at worst. Competing internal politics
can lead to a subjective decision that does
not enjoy full support within the company.
To plan well, the company must understand the labor market, the business climate, the incentives and real estate availability, as these factors apply to their specific needs.
How does a location adviser add value to site
selection?
There are the obvious ways, in terms of
financial gain and tax savings. Perhaps of
equal importance is the fact that the location adviser works through an objective
and well informed process. He or she conducts a needs analysis that helps the company understand the key issues and location drivers. In most cases, going through
the process helps a company focus on its
real objectives and key issues, which
makes the relocation or expansion succeed fully.
If a company is planning relocation or a
new facility, it is often a strategic move
where confidentiality is critical. They may
be moving into another market to challenge competition or increase sales. The
adviser can maintain anonymity for the
client while performing studies and negotiating incentives.
What types of companies would most benefit
by working with a relocation adviser?
The range of companies that will benefit
goes from those engaged in manufacturing
to high-end regional offices for service
organizations. If they are not experts in
real estate, site selection, demographic
analysis and governmental incentives, and
if they do not have excess internal staff
who can dedicate their time to a relocation
project, they benefit enormously from
using an adviser. Most companies have
found they are most profitable when they
concentrate on their core business.
What additional resources do advisers bring
to the table?
Location advisers have up-to-date and
multiple computer and database technologies. They are experienced and can customize the search to reflect a company’s
real objectives. Clearly, if your core business is analyzing and locating sites and
understanding government incentives, you
have more experience, tools and staff to
devote to that task than if your business is
manufacturing computer parts.
A larger real estate organization with a
global affiliation of independently owned
real estate services firms is able to provide
expert local real estate knowledge, so it
can implement the consulting advice with
local and direct site selection and negotiation.
Is relocation consulting cost-prohibitive or
can it actually reduce the final costs?
Perhaps I can best answer with an example. One relocation expert was working
with a company whose controller thought
that $300,000 would be his best incentive on
a manufacturing relocation in the U.S. The
expert identified opportunities he was not
aware existed. As a result, they were able to
negotiate a package of $3.6 million in incentives and grants. The consulting fees are
very reasonable and provide clients with a
great deal of value for the money.
Can a relocation adviser work within the
company to lessen any internal politics that
might arise due to differing needs and opinions?
The adviser is in a position to challenge
all of the client’s assumptions and to help
prioritize issues, so that the outcome will
be logical and defensible to the board,
employees and stockholders. He or she
can maintain confidentiality internally to
elicit the most accurate responses without
creating conflicts.
DOLORES SEYMOUR, MCR, CCIM, SIOR, is managing director of Industrial Services at Colliers Arnold. Reach her at (813)
221-2290 or [email protected].
