10 Questions to Ask When Choosing a Site for Your Next Production Facility

Feb 17

When it comes time to choose a location for your next production facility, you have a lot of factors to consider. The site selection process isn't as simple as finding a facility location that's big enough and at a reasonable price. Your facility location strategies and research need to focus on all sorts of aspects, like:

Transportation costs
Environmental protection concerns
Pre-approved nearby construction or development
Your present and future engineering needs, projects, and/or technology roadmap
Energy costs
Local political issues
Concerns of nearby communities
Proximity to nearby schools and public spaces
Total cost per square foot, inclusive of necessary site construction projects

Before you make any site selection decisions about your new project, you need to ask some tough questions about the site itself.

Ignoring these aspects of the site selection process could cost you a fortune down the line.

We've seen more than our fair share of hasty site selection decisions and poor location strategies cause costs to skyrocket to the point where businesses go bankrupt.

Here are three general tips and 10 questions that will help get you started with your location strategies:

Tip #1: Expect a line item for construction costs. And then double it.

Every private sector site selection project we've consulted on in recent years has needed a budget for construction costs. That's just the environment we're all living in.

But that's not a bad thing.

Pretty much every property and structure has needed at least a few new construction projects completed prior to or shortly after move-in. And in every case, the cost that our client incurred was:

About twice what they originally expected prior to their search
Had its cost pay for itself in subsequent talent searches and fine-free code compliance audits.

Call it breakage.

Call it the cost of doing business.

Prospective construction is usually part of the site selection process. Consider it an opportunity to create a safer, more welcoming environment.

Tip #2: Include Energy and Environmental Design Costs as an Investment

About half of the engineering projects we consult on are to assist a client with a corrective measure.

Nobody loves compliance projects, but they're absolutely essential to the development of healthy communities and safe businesses.

We try to remind our clients that any construction or technology costs they may incur after finalizing their site selection aren't sunk costs. They're an investment in making their manufacturing facilities safe.

And less expensive later on.

As an example: You wouldn't believe some of the (daily!) fines we've been emergency-onboarded to help resolve. We've seen some that pushed six-figures.

Per day.

Tip #3: Don't Ignore Transportation Costs During the Site Selection Process

When we first remind new clients to consider transportation costs, they usually say something like:

Of course we've worked transportation costs into our business model.

But those aren't the only transportation costs in our analysis...

Let's say you need an industrial oven next year, but it'll be over the city-ordained weight limit for the street you're on. How much will that administrative use permit cost you?
Are you within walking distance of a major train station or rail depot? That could decrease your costs. So put that number in the "pros" column.
How big are the trucks that'll usually be coming and going from your facilities? If you need more turnaround space, that'll be another construction project you'll have to create for that location. So that needs to be included in your site selection analysis.

And this is just a short example. We've got more points of consideration, too.

Bonus Tip #4: Location Strategies Have to Be Flexible

Every site selection process, no matter the location, needs to be adaptable.

If you go into the process with a preconceived notion about what your site will or must be, you're likely to be disappointed.

You'd be best served by calling in the help of some experts—like ReadyLimit!—who've got the ability to assist in the research and development of your site selection plan.

We're creative.

We've helped all sorts businesses spool up facilities at sites that their initial site selection analysis mistakenly dropped from consideration.

Okay! Let's move on to our list:

10 questions for your site selection process:

#1: What Are the Candidate Site's Pre-Existing Conditions?

Even the best location will have drawbacks that are worth consideration. Fact is, locating a new facility is mostly an exercise in compromise.

But this isn't a bad thing.

This compromise is, has been, and forever will be the case for every manufacturing facility that has ever been built or brought online in the public or private sector.

The site selection process is a research project that you'll be going into more or less blind.

Even as you go through the process—even if you attempt to produce an enormous, high quality site survey full of endless, great detail, you'll still never be able to identify a complete, no-doubt, 100% perfect property—no matter how large the list of potential sites.

Because there is no such thing as a perfect building site.

Say it with us: There is no such thing as a perfect building site.

Always remember that you're trying to find the best site. Not the perfect one.

Now that we've got that out of the way...

Let's start at the beginning: Tour the site.

Take a look around. Walk the perimeter. Take pictures and notes.

If you have any gut feelings about aspects of any existing facilities, jot them down.

You'd be surprised at how often we find clients referencing these initial notes as they research potential sites.

You never know what you'll be able to spot or what you'll consider down the road.

Check for existing interior layout to determine what is useful or what has to be removed.

Unless you know for sure that you're going to bulldoze every existing structure onsite, tour as much of the interior as you're safely able.

If you've got a real estate broker or agent with you—or even better: an existing site manager—they'll be able to identify any existing site or facility hazards with which you might not be immediately familiar.

Check for reasonable ceiling height.

Before you go any further—borrow or buy an inexpensive laser measure.

Each of our site staff has one of these ~$30 models stashed in the glove box. But anything similar will be just fine.

A pocket laser measure won't replace a proper site survey, of course—but that's not what we're worried about at this point.

Use the laser measure to check ceiling heights and bay door dimensions. These are the sorts of numbers you won't realize you need until you don't have them.

Some years ago, we were hired to help a client who bought a multi-million-dollar piece of equipment with an eight-month lead time—only to find out on the day of delivery that it wouldn't fit through their loading dock doors.

That was an expensive mistake.

Busting down a facility wall proved to be less expensive than redesigning their process to accommodate a smaller tool, for which they'd still have to wait another eight months.

But only slightly less expensive.

So! Save yourself that sort of hassle. Get an idea of how tall the ceilings and ingress doors are on any existing structure you'd plan on keeping and using. It could help to narrow down your list of potential locations

If possible, aim for an ”Unlimited Area Building”

Unlimited Area Buildings are distant from other buildings in that they have at least 60-foot side yards. Large side yards will cut down on any construction costs, and are always welcome around manufacturing facilities.

Remember: Space is the only thing you can't add to a site.

Favor locations with plenty of service yard space

If you can't land an Unlimited Area Building, try to find a site with a sufficient number of high quality service yards.

Every extra square foot of quality service yard will play an important role in reducing your operating costs and keeping the city's civil engineers happy.

#2: What's the prevailing wind direction?

Here's another part of the site selection process that never seems to receive enough focus. The prevailing wind direction can play a significant role in the energy and environmental design of your facilities.

There are tons of fantastic, free resources for current and historical wind analysis. Type an address or coordinate into any of these services:

Once you have an idea of your wind situation, overlay that information onto a map. You're looking to identify various types of sensitive receptors that might be downwind of you.

What's a sensitive receptor?

Here are some examples, though this list isn't exhaustive:

Any school, playground, park, or daycare facilities
Elderly communities
Fire stations
Police stations
Hospitals
Jails or prisons
Food processing or production facilities
Places of worship
Civic centers
Reservoirs or civic water sources
Developed areas with lots of commercial or economic activity
Civilian transportation hubs, like airports or airstrips, and train or bus stations
Outlets for domestic or international trade, like weigh stations, border crossings, or ports
Federally protected lands

You don't need to attempt to find a location that has zero of these things downwind. That's not usually realistic.

But you want to minimize the number of these sorts of sensitive receptors that are downwind.

If your manufacturing facility has a large number of these sorts of facilities, you may need have an air dispersion modeling study done before you make a firm commitment.

A proper air dispersion model will provide a high quality analysis of your wind situation and will play a significant role in deciding between potential locations for your site.

The last thing that anyone wants is to turn a serious facility incident into a complete crisis because there's a school, or a food processing facility, or an international trade station, or various types of sensitive communities downwind of a gas leak or a chemical fire.

3. Are any Americans with Disabilities Act upgrades necessary?

The Americans with Disabilities Act (ADA) is a federal civil rights law that prohibits discrimination against individuals with disabilities in all areas of public life, including jobs, schools, transportation, and all public and private places that are open to the general public.

Ignorance, dismissal, or circumvention of ADA accommodations at your new facility can cause the city or fire department to red-tag your site—or in extreme cases: even the entire property—until the location has undergone proper ADA engineering and construction.

In practical terms, this means that your facility will need adequate access ramps, handrails, signage, and handicapped parking space. There may be be various tasks that you'll need to address on any potential site. The presence of a few ADA construction or upgrade projects should never be a deal-breaker, but the total cost of any onsite ADA infrastructure development projects needs to be included in your site selection process.

4.: What concerns might the city have about your site?

As you narrow down your list of prospects, remember to perform a full analysis of any zoning issues or nearby locations or services of considerable concern.

Is there a school in the vicinity?

This is the first thing we do when we start any site selection analysis.

Seriously.

Before we get into any technical aspects of the search or think about any political issues that any location might have, we pop open Google Earth and look to see if there's a nearby school.

"Nearby" is a soft term that needs expert analysis. Example:

If you're manufacturing or using toxic or highly toxic gasses, pyrophorics, or if your facility might need to deal with combustible dust issues, "nearby" could mean a mile. It could mean two miles. Or ten. There's no standard here. But if a school is too "nearby" for your technology or process, the development of your entire site selection process needs to adapt from minute one.
If you're running a small ceramics process and your biggest concern is where and how to locate some above-ground propane tanks, too "nearby" might be just down the street. Or maybe not. It depends entirely on your process and the nature of the site.

What are the site's zoning restrictions?

If you've found a Goldilocks site for your new facility, but it's not zoned for your business—are you prepared for the considerable hassle, timeline, and expense that getting your location rezoned might entail? And what's your plan if those rezoning efforts fail?

Are you going to apply for an administrative use permit (AUP)? We can help with those, but trust us: they're expensive.

And what if your business or technology development causes big changes in your process two years from now? Will your current zoning restrictions accommodate those changes?

Do the existing structures have already have an AUP in place, or will your site need lots of Planning Department review?

If you think you might need an AUP, it's worth considering a pre-permitted site or location that might not otherwise fit your desired space, services, or cost per square foot numbers. Bonus points if that AUP doesn't also require a Conditional Use Permit.

If you're not familiar with AUPs or CUPs, it's okay. We are.

5.: What's the current state of the site infrastructure? (Utilities/Municipal/Waste Treatment/Storage)

Infrastructure upgrades or augmentations can get enormously expensive very quickly. Here are a few facets that you need to consider during your site selection:

Power and Water

Who's your current utility provider? What are your current services? Do you have enough power and water? Will you have enough next year?

Sanitary Sewer

What's the capacity of the existing sanitary sewer service? Will it still be adequate if you add office space in a few years? If not: what might that upgrade cost you down the line? Is that cost within your budget if your business plan holds up?

Sewer service is usually likely to be acceptable, but this is a service necessity that you usually can't permit your way around. So it's worth a little focus when settling on a location for your site.

Fire protection water supply

Aside from potable or tool water, how's the fire protection water supply? If your Fire Protection Engineer comes back and says that you'll need to quintuple the fire sprinkler supply for a new project that you've already developed but haven't yet installed, can your existing fire protection water supply meet that demand?

Local street traffic

How busy is the truck traffic on your street?
How difficult is ingress and egress?
Is there a noise nuisance?
How far is your building set back from the road?

Example: If you're planning on using hazardous materials, there are guidelines that you'll need to meet when placing any bulk storage. The last thing anyone wants is for a tanker truck to blow a tire and veer into a service yard full of flammables.

Existing Hazardous Production Materials

It's unlikely that you'll find a site that has adequate (or any) existing infrastructure for hazardous production materials that are pertinent to your firm any already-developed project. But keep an eye out for e.g.:

Secondary containment assets
Existing scrubbers
High-density sprinkler installations
Secure service yards on site
Chemical bunkers
Bulk storage tanks

Any asset that you'll keep and use will need to undergo proper analysis before it can be used on any project. And in some cases, you'll want (or need) to remove existing assets from the site.

But the absence or presence of existing hazardous materials infrastructure can and does profoundly influence the entire site selection process.

Look for sites that have adequate space for exterior tanks and detached storage.

Ideally, you'll want choose a large land-area site that can accommodate an exterior storage building that is:

At least 30 feet from the building
At least 30 feet from property lines

This sort of reasonable, existing buffer will save you a lot of engineering, permitting, design, and construction headaches no matter where your site selection process takes you. If your final site already meets these requirements, you've eliminated one huge task from your location search.

Onsite wastewater treatment systems

You probably don't need us to tell you that treating wastewater can be horrifyingly expensive. So be sure to check for any onsite wastewater treatment systems that you might be able to use once your site is up and running.

Wastewater treatment systems are hardly plug-and-play, though. So make sure that any system you're planning on using is up to the task.

(Psst... ReadyLimit is great at this. Drop us a line.)

Underground solvent storage tanks

It’s best to not select a site that has had or that still has any underground solvent storage tanks. Trust us: they're a permitting nightmare, and they can throw a wrench into any project. Avoiding any location with underground solvent storage tanks should be high up on the action item list of any site selection project.

6.: Are there any existing environmental or safety concerns about the site?

Part of the site selection process is going to involve a fair amount of due diligence on your part, but there's just about nothing worse during location development when you find out that you're starting from a difficult environmental or safety position.

Historical hazard surveys

Here are the three big surveys that we like to ask about and have performed before any site selection project is complete

Asbestos
PCB
Lead

If you're moving into a location that's been used in an industrial capacity for several decades, then you need to be concerned about asbestos, PCBs, and lead that might be onsite.

These aren't necessarily a dealbreaker, but, as an example:

finding out after the fact that all of the paint on the interior walls of a service run that you're planning on expanding is full of lead can nuke a budget faster than just about anything short of a full seismic retrofit.

Underground storage tanks

We talked about this a minute ago in the capacity of underground solvent tanks, but it's worth knowing about the history of any other underground storage tanks that might be onsite—even if only for your location planning.

When underground tanks are decommissioned, they aren't necessarily dug out of the ground. It's often less expensive and just as safe to fill them with concrete.

But imagine you're digging a service trench on location and you discover a block of concrete the size of a school bus that's right where your trench is supposed to be?

Yes, we've seen it happen.

And yes, it was expensive to fix.

Remediation

You absolutely want to know if there's ever been any remediation on location. Again, a history of remediation onsite isn't necessarily the end of the line for a candidate site.

But it could be.

As always, it depends entirely on your needs and the context of the rest of your site selection project.

Soil or groundwater contamination

Make sure you ask about whether a location has previously been flagged for soil or groundwater contamination. If yes, it might not matter.

But it's absolutely important to know.

If your preferred candidate site has a contamination history, you'll need to get everything documented, acknowledged, and probably signed by the landlord, previous tenant, city, or some combination thereof.

This is a complex consideration. And it's certainly attorney territory. Proceed with caution, and make sure you've got the right experts on your team. (Like ReadyLimit, for example.)

You absolutely do not want to get tagged for contamination you didn't cause.

Phase I Environmental Site Assessment

If a Phase I Environmental Site Assessment isn't available for your candidate location, make sure you (or someone) hires a qualified person to perform one before you sign any lease or purchase agreement.

These assessments will provide you with detailed information about current or future environmental site concerns, and should be an essential part of your site selection project.

Offsite Contamination

We always spend some time—and encourage our clients—to investigate any offsite contaminants that might encroach upon a candidate site. If your neighbor doesn't have their act together and has a chemical disaster, that could absolutely affect your operations.

Or, if a neighboring tenant had a chemical disaster in 1970 and those contaminants have been slowly inching their way toward your candidate site and/or weren't properly remediated at the time, you need to know if or when they might finally arrive.

Just because a site is perfect today doesn't necessarily mean it'll stay perfect forever.

In general, try to be aware of known unknowns that aren't necessarily in your control.

Ask for a copy of the lease

This one sounds obvious, but sometimes it's still comes across like a revelation to clients who bring us along to help with their site selection.

Get a copy of the "final" lease documents, and have an environmental expert—like ReadyLimit!—or an environmental attorney review the environmental and hazardous materials clauses.

Odds are good that there aren't several other similarly-scaled manufacturers that are beating down the landlord's door. Taking a few days or a week or some reasonable amount of time to have documents reviewed by your team is almost always going to be acceptable.

7.: What's the transportation situation?

We talked about it earlier in this article, but this is an aspect of the site selection process that usually doesn't get enough attention.

How easy is it for people, cars, trucks, and emergency vehicles to get into, out of, and around your site?

Parking

When we talk about a location's parking needs, we often refer to what's called a parking ratio.

A parking ratio is a proportional relationship between the size and use of a building and how many parking places it needs.

For example: a movie theater will probably need a lot more parking spaces than a warehouse, relatively speaking. So we would say that a movie theater has a higher parking ratio than a warehouse.

Again, this is a relative consideration—not absolute.

We like to see about five parking places per 1000 square feet of occupancy.

But considering today's remote-work climate, you may be able to get away with a lower parking ratio. As with so much of the rest of this process: it depends on your specific needs.

Driveway count

This one's simple: we love to see sites with two or more entrance driveways with separate driveways for employee access and truck traffic.

Fire lanes

Ideally, you want a location that's got minimum 20-foot fire lanes around the perimeter.

Column spacing

Here's a tricky one that sources a fair amount of our site selection business: column spacing. You wouldn't believe how many times we've been called in to help design a facility after the lease has been signed because the existing facility's column layout is entirely incompatible with the process it's supposed to house.

If you have a critical tool that's got a footprint of thirty feet by thirty feet, but your interior columns are spaced out every twenty feet, guess what: that tool's not gonna fit in that building. Not without some incredibly expensive building redesigns, anyway.

8.: Are there any seismic Issues

California has some of the most stringent seismic codes on the planet. And for good reason. Here are some things you need to consider:

Recent seismic upgrades — has an existing building that you're planning on using had any recent seismic retrofits? These might include things like
Roof re-nailing
Cross Braces
Shear Walls
Roof-to-exterior-wall ties
Slab cracks — are there any large cracks in the interior slab? How many?
Is the site geotechnically stable?
What's the groundwater depth?
Where is the nearest 100-year flood plain?

Answers to these questions all fit together on a continuum—there's no right or wrong answer or value.

Except for slab cracks. If the slab is more crack than concrete, it's best to move on.

9.: How suitable is the building?

At the end of the day, this is the thing that matters most—right? You need a suitable building. Either one will already exist onsite, or you'll need to build one.

Interior configuration

Consult with your process engineer and architect and walk through your process flow. Think in broad strokes:

Where will the kilns live?
What's the best spot for a dryroom?
How are we storing process materials?
When super-hot stuff comes out of an oven, where does it sit while it cools?

You don't need to have a full process analysis ready to go, but you need to be able to look at a space and determine whether it's definitely acceptable for your physical needs, or whether you'll be cutting it close.

Ceiling heights

Talk to your architect. Make sure that the building's ceiling heights are copacetic. Raising ceilings (or digging tool pits) can cost cubic money. And physical constraints are mostly non-negotiable when it comes to operating your process.

Vibration

This is rarely an issue that we come across, but it's worth mentioning.

If you've got any tools or processes that are extremely sensitive to vibration, make sure you have access to a recent vibration study.

Vibration can be extremely difficult to mitigate if, for example, you're very close to a rail line or major freeway.

But difficult doesn't mean impossible.

We've helped design vibration solutions before.

Trenches

Are there any trenches in the building? What about old trenches that have been filled in? If yes, you'll need to go down the rabbit hole and compare the extant conditions to your process needs.

Call your agencies

Your local enforcement agencies are much like the IRS in some ways: you certainly don't want to be on the wrong side of them, but more than anything they want to see you succeed. Reaching out to them proactively is far less painful than you might expect it would be.

You can and should give your jurisdiction a call to see if there are any outstanding or problematic site issues that require attention. They're usually very friendly, helpful, knowledgeable folks.

What's the current architectural situation?

If there are buildings onsite, you should be able to request and be provided with up-to-date architectural drawings. You'll want to get your hands on these and have them reviewed by your architect or a qualified building or fire code expert—like ReadyLimit!

Building Type

Buildings are classified in a number of different ways, and each type of building is permitted to house specific classes of activities.

That being said: building classifications can change if the process proceeds through the proper channels. And just because your building used to be classified as one thing but is now classified as another doesn't mean that it's presently classified as both.

You need to know the current building type and permit history for every structure on site.

Civil Drawings

Ask your city for copies of relevant civil drawings that show the locations of underground utilities and storm drain systems. These are almost always reasonably available by request, though you can expect to pay a fee.

10.: What are the other common cost factors you can expect?

Just about every facility will have various types of tasks that need attention prior to a new tenant moving in. Here are a few examples.

If the existing HVAC equipment is old, it might have to be replaced.
The fire sprinkler systems might require upgrades, so those costs should be evaluated.
Determine if structural upgrades will be required. Assume that the existing slabs will have to be upgraded or replaced to a certain extent, so evaluate those probable costs.
Sometimes a power upgrade can take a long time, so check for costs and delays.
Make certain that no asbestos, lead, PCB, or contamination removal and/or remediation is required.
In some buildings the energy-efficiency regulations require additional costs for insulation or upgrades to interior lighting Dlacement of HVAC systems

BONUS! 11.: What's the "hassle factor"?

Here's a non-exhaustive bucket of softer, difficult-to-quantify situations that you'll need to consider:

Does the candidate site have any major traffic problems?
Is the building in an area that has persistent nuisance odors?
What's the persistent theft and crime rate for the area?
Are you in a fire-hazard region (e.g. too near a forest or woodlands)?
What about flooding? Are you close to a levee or a floodwater basin?
How cooperative and supportive are the local agencies?

TL;DR

When choosing a location for a production facility, you've got a lot to consider.

We're experts in site selection, and we can help you evaluate all of these factors and more. If you're looking for a new location for your business, drop us a line.

We'll help you find the perfect site for your needs.

Ben Elliott