Strategic Consultant @ Cushman & Wakefield | Business Consulting, Market Intelligence
Last week, I had the privilege of representing Cushman & Wakefield at the inaugural Select USA Mexico Conference. It was an honor to participate as a panelist in the opening session themed "Due Diligence and Site Selection." During the conference, I engaged in thought-provoking discussions alongside esteemed colleagues. We explored into the key considerations for Mexican businesses when selecting locations for their investments in the U.S. market. These conversations sparked valuable insights and reflections. However this conversation made me think on the fundamental principle that guides our approach: a thorough comprehension of our clients' business goals, regardless of the market we're operating in. We understand the critical significance of aligning our site selection strategies with these objectives. Whether the aim is to enhance supply chain efficiency or propel revenue growth, our strategies are meticulously crafted to address our clients' unique requirements. Supply chain considerations take the lead, as they account for a substantial portion of operating expenses —typically 50 to 60%—are tied to transportation and logistics. This underscores the critical importance of choosing locations that offer logistical advantages and minimize operational costs in the long term. Labor availability and quality are equally pivotal factors. We prioritize locations with a skilled and accessible workforce, often seeking areas with proximity to universities or vocational schools offering relevant training programs. This ensures a sustainable talent pipeline for industries operating in those regions. While real estate considerations are important, they are secondary to factors like labor and logistics. Typically, the impact of real estate costs on total annual operating expenses is outweighed by transportation and labor costs. Doing your homework, will save you money in the long run, there's the money you can save from making a bad decision, but also you can save money from an incentives perspective. By carefully examining whether a site selection firm that also has expertise in incentives, you ensure a comprehensive comparison of business incentives at the state, federal, and local municipality levels. This ensures a fair comparison, guaranteeing that you are evaluating similar opportunities and making decisions based on accurate and comparable information. In essence, by understanding the intricate correlation of factors influencing site selection, businesses can mitigate risks, optimize operational efficiency, and maximize returns on their investments in the any market. What are your thoughts?
