What Really Matters in Industrial Site Selection: A Practical Framework for Mid-Sized Manufacturers

For mid-sized manufacturers, choosing a new facility location is one of the most consequential decisions you’ll ever make. It’s not just about rail access or tax rates—it’s about aligning your business strategy with a place that will support your growth for the long haul.

After two decades advising both companies and communities, I’ve seen how site selection can either unlock long-term success or slowly erode a company’s competitive edge. Here’s what really matters—and what every manufacturer should look for—when evaluating where to expand, consolidate, or relocate.

1. The Right Site in the Right Community

Industrial buildings and land are just the starting point. The real differentiator? Finding a community that wants your business and will go to bat for your success.

Communities that understand your industry, appreciate your investment, and are willing to offer tangible support will make life easier—before, during, and after your move. A great site in a disengaged community often becomes a regret. A good site in the right community becomes a competitive advantage.

2. A Competitive Incentive Package

Incentives are not just about headline numbers. The real value comes from aligning programs to your operational needs—upfront capital savings, long-term operating cost reductions, and flexibility in deployment.

Whether it’s infrastructure support, tax abatements, training grants, or discretionary cash incentives, your project deserves a package that reflects your value to the region. That only happens when the incentives are professionally scoped, negotiated, and aligned with performance.

3. Labor Cost Without Overpayment—and Training to Match

Labor availability matters. So does labor cost. But where many companies go wrong is assuming that “cheaper” means “better.” The real goal is workforce value: getting the skillsets you need without overpaying—and securing the community, state, or educational support to build your workforce over time.

Well-structured training assistance and workforce partnerships can dramatically reduce ramp-up costs and turnover rates, which pays off far beyond your first hire.

4. Proximity to Customers and Suppliers

Logistics and access remain core to manufacturing performance. Whether you’re shipping finished product or relying on just-in-time deliveries, being within reasonable proximity to key suppliers, end markets, or transportation corridors can reduce inventory carrying costs and improve on-time performance.

And the cost of being too far away? Increased shipping expenses, missed deadlines, and strained relationships with customers and vendors alike.

5. A Location That Makes Business Sense

Every business has its own mix of cost drivers, customer expectations, and operational quirks. That’s why “lowest taxes” or “cheapest land” shouldn’t be your sole filter.

What matters is whether a location supports your entire operation—your logistics model, labor model, financial model, and long-term strategy. In short: does it make business sense?

6. A Place You’ll Be Proud to Call Home

Corporate fit isn’t just for Fortune 500s. Mid-sized manufacturers often have long-standing cultures, loyal employee bases, and leadership teams that are active in their communities. You need a place that aligns with your company’s values and offers the quality of life that will attract and retain key talent.

If you're going to invest millions—and commit decades—you should like where you're landing.

The Bottom Line

Site selection is more than a real estate decision. It’s a strategic business move that affects your people, your profits, and your future.

At Impact Economics, we help mid-sized manufacturers navigate this process with clarity, confidence, and a bias for value. We bring an integrated approach that combines market data, labor analytics, incentives expertise, and community insight to ensure you land in the right place—with the right deal.

If your company is thinking about growth, expansion, or relocation, let’s have a conversation. The right site in the right community isn’t just a possibility—it’s a strategy.

Jim Gibson, CEcD
Founder, Impact Economics