Introduction
Choosing a location is one of the first decisions that your company will make when entering a new market.
Location analysis provides companies the insights required to compare industrial facilities. Understanding cost and supply base differentials permit more informed investment planning and give rise to measurable improvements in operational performance.
However, it is particularly challenging in emerging markets as the factors and conditions affecting your selection are constantly changing. Considerations in labor costs, logistics connections, customs practices, and the state of infrastructure must be balanced against long term business sustainability. Location and strategic site selection plan can have major impact on the success of your business when they directly affect production, operational efficiency and sales channeling. Therefore, you must take steps to ensure you have the right information before committing your time and money.
Key Business Challenges
There are multiple considerations that you must grapple with when choosing a location. This can be particularly difficult in markets like China, Vietnam and India, where the regulations are complex and reliable data is scarce.
Real Estate
Investors should not assume that all industrial zones are created equal. Companies entering emerging markets for the first time or expanding into new markets can benefit immensely by reviewing multiple options to find a zone suited to their needs.
Infrastructure
Industrial zones are readily found throughout emerging Asia at a discount to pricing seen in your company’s home market. Management teams considering a zone for its competitive pricing often overlook the location of the zone and the infrastructure networks linking this zone with national ports. This can easily result in problems in supply chain management and create cost overruns.
Supplier & Labor Markets
Industry clusters can be a useful indicator that a zone is well-suited for investments from a particular industry. Well-established clusters often arise due to infrastructure and incentives that pair well with the needs of these companies. A large group of companies in the same industry also helps to attract and skill up workers required by companies within the industry.
Cost
Investors should pay close attention to the size of investment they are looking to make within a country. Industrial zones can impose direct and indirect capital requirements on your company by setting limits on the minimum land parcels available for lease.
Operational Environment
Limited capacity in industrial zones can present challenges for you investment in the most popular zones. Availability of land and existing facilities can prohibit investment, presenting challenges for you seeking to expand your operations in the near future.
Legal & Regulatory Environment
Asia Pacific economies are focused on maintaining an enterprise-friendly tax regime amidst the growing economic uncertainty. In some countries, investmemt law provides incentives and tax breaks for foreign companies such as yours with the intention of attracting foreign capital to sectors of strategic interest for the host country. For example many emerging Asian markets offer tax incentives for the industries of environmental restoration and protection, agriculture technology, advanced manufacturing, and biotechnology. These incentives are based on your company’s registered capital and potential tax contribution and are subject to multiple rounds of negotiation with the industrial zone.
Human Resources
In the site selection process, human resource may a have huge impact on investment decisions regardless of the nature of your business. In some countries, the availability and the quality of labor present a further challenge for you as an investor, particularly if your industry requires labor intensive manufacturing plants.
Our Project Approach
Our business intelligence provide market entry and expansion reports for clients in through research and analysis. In turn, our clients are better able to understand their options in new markets and make informed decisions on where to invest.
Project Process
Discover how do we work with our clients to identify the optimal investment location for their business.
We have developed a structured process to find the right location for clients, which consists of following steps:
1. Project Definition
To find the right location, we start by working with you to define objectives and search area. We will then set search metrics by developing in consultation with your company the location search criteria, which will be based on a number of preferred factors as illustrated below:
2. Due Diligence & Screening
We will conduct an initial screening for potential sites based on defined search area against identified search criteria. Our business intelligence team will eliminate unqualified locations and prepare a shortlist of suitable locations for your review.
3. Detailed Review & Comparison
Our team will conduct field visits to each shortlisted location and interview relevant parties. When this phase is completed, a report with data metrics, rating and ranking on which “best-fit” your company’s needs will follow with risk analysis of property options.
4. Site Visit & Final Validation
Our team of advisors will provide their final recommendations on the sites and schedule site visits for your company. Upon completing these site visits, our company will facilitate negotiations and formalize due diligence on site and landowner certifications for you.
