Location decisions · Guide
Before Moving an Industrial Operation Out of California
Compare rent savings with labor, moving costs, downtime, operating risk, and timing before choosing another market.
Location decision
Decide what the operation needs before choosing a market
One operating requirement
Path 1
Stay
Path 2
Move
Path 3
Expand
Path 4
Redesign
A fully priced option
Start with what the operation needs
Do not begin with a list of markets that have lower rent. Begin with what the operation must still do after the move.
Define the labor, transportation, utilities, building, customer, and timing requirements first. Those needs determine which markets are realistic.
Compare the full cost of moving
A lower rent can still lead to a worse decision. Include:
- recruiting and training
- equipment moves and setup
- downtime
- duplicate rent
- leadership travel
- customer disruption
- incentive requirements
- operating risks in the new location
Compare the move with staying and renegotiating. If the analysis cannot recommend staying, it is not a fair comparison.