You need to build a new factory when your company starts to grow bigger. If the product management or storage management disrupted, the production process is also disrupted. Therefore, build a new factory or renting a warehouse is a solution when the storage space at the factory is unable to accommodate the goods anymore.
Renting a warehouse might be a short-term solution. However, if you want to plan long-term business, build a new factory will be a good solution. Then, If you want to set up a new factory, the biggest challenge is to find the right location for your business. There are several things that you should consider if you want to find the right factory land for your new factory, such as:
Location and Distance
The first thing you should consider if you want to build a new factory is the location and the distance of the factory. The company must pay attention to whether the factory location is close to transportation routes or not. Why? Because transportation routes such as toll roads, train stations, ports, and airports are needed for delivery service and transportation needs.
The close distance to transportation will help the company to reduce shipping cost and time saving. Therefore, It will be better if the new factory location is close to the economic center, raw materials, and adequate labor Because It will help your company to work well.
The second thing you should consider if you want to build a new factory is potential for factory expansion. You should think that your factory is not only used for the next one or two years, but you must think that your factory can be used for the long term. Therefore, you should search for the factory location that has the potential to expand.