When it comes to choosing a place to rent a warehouse, it's critical to examine all of the following factors, make some notes, and then compare your notes to all of the accessible alternatives. The final choice should be made only after all of the data has been gathered and examined.
Let's go over some factors for choosing the ideal warehouse site.
Rent Rates & Taxes
When it comes to choosing the best warehouse site, the cost will always be a factor, but it cannot be the only one. Hidden costs may cancel out any savings from low rental rates, therefore they must be examined.
A warehouse's rental rate is usually calculated in square feet (SF) per year or month, depending on the landlord.
In addition to rates, local government laws, tax structure, and incentives must all be considered. You could also be eligible for specific local government initiatives aimed at promoting your sector segment, so keep that in mind.
Workforce Availability, Labor Skills & Costs
Local demographics have a direct impact on workforce availability, skills, and labor prices. Not every geographic area has a workforce with the necessary abilities at a reasonable cost. Pay close attention to the demographics of the state or city in question.
Consider supply and demand when assessing worker availability: Salaries will rise due to a shortage of workers and increasing demand. Likewise, the inverse is true. Salaries will be lowered due to a high degree of worker supply and low demand.
Skills are also important, in addition to labor availability and prices. A skills gap in the workforce will result in poor customer service and a decrease in both competitiveness and productivity.
Roads, Highways & Traffic Flow
Access to roads and highways, as well as local traffic congestion, must also be taken into account, particularly if trucking is the primary means of transportation.
Some or all of these variables have an influence on transportation costs, which can affect a company's competitiveness or the attractiveness of a storage facility to consumers.
Fuel consumption, accident rates, and time lost will all rise as a result of factors such as crowded highways and surface roads, as well as inadequate signaling systems.
Markets & Local Environment Factors
Location with relation to suppliers, producers, and the market(s) to be served, as well as local environmental considerations, must all be taken into account.
The location of any new warehouse should be as close to important suppliers, manufacturers, and/or consumers as feasible. This will aid in reducing lead times, lowering transportation costs, and improving responsiveness.
The important thing to think about here is who your key supply chain partner(s) are and how you can improve the supply chain's efficiency by carefully choosing a warehouse site. You can choose Corporate Visions as they provide cheap warehouses for rent.
Local environmental elements like weather and the danger of being exposed to natural catastrophes should also be taken into account.
Hurricanes, tornadoes, and earthquakes may all affect the warehouse. Is it in a high-risk area for flooding? The warehouse must fulfill particular architectural criteria in order to mitigate any of these dangers.
Other local environmental variables to consider are closeness to neighbors (warehouses can be noisy), road congestion, and peak traffic hours. Think about how these variables could impact your daily operations.
Building Availability & Utility Costs
You'll need to make adjustments if the company expands or contracts. If this is the case, if shifting to a new warehouse is your sole choice, you'll want to minimize the need to re-evaluate all of these variables. You'll be able to keep your staff, utilities, and other services by staying in the same region, as well as reduce the hassles of carriers/truckers and consumers attempting to find the new location.
