Finding the right space for your business / Factory

Starting the search for a new Factory premises can be daunting.

Finding Industry property that ticks all the boxes in terms of location, size, price, room to grow, access and transport is a huge task for any business owner, but there a few key considerations and tips that can help make the decision a little easier.

Generally there are five main points you should consider when taking the leap into a new commercial property.

Location and access

How easily customers and staff can get to your business could well be the most important factor to consider when choosing where to buy or lease.

Without clients, you have no business, so selecting a location that is easy to commute to by car or on public transport is critical.

“Ask about drive times – the distance point to point may not look far, but if access routes get highly congested at particular times of day, the negatives may outweigh the benefits if your clients or staff are stuck in traffic,”

“The ability to commute via public transport such as buses and trains is advantageous.”

“Easy and direct access to the closest airport is also a key consideration, especially if you deal with delegates from interstate or overseas.”

Ease of access via car is pointless if there’s a lack of car parking, so ensure there are adequate car spaces to accommodate both your staff and customers.

Size and space

Your staff probably need more space than you think. But how much space is enough, and how much is too much?

The type of business will also play a large part in dictating how much room you need, and there are also laws governing how much space is required per employee.

“A Ancillary Factory will require less space per worker than say a Engineering or fabrication factory with large Machine works etc.,” .

It’s important to consider properties that provide enough space for your current requirements, but will also allow you to grow if need be.

“Once you’ve worked out how much space you need, also consider if you’re planning to expand in the future. Make sure adequate extra room is already factored into the size to prevent the need for an expensive relocation.”

What’s it got?

Amenities – both within the property and also nearby – are the next thing to consider, particularly when it comes to attracting and retaining good staff.

“Can staff buy their lunch somewhere within walking distance, and eat in a relaxing setting with fresh air before returning to work revitalised?”

“Are there Staff Quarters and Residential buildings nearby or in the area, or other consultants you regularly deal with, such as your Chartered Accountant? A work environment catering to your staff’s needs will go a long way in keeping them working for your business instead of looking for something more convenient.”

Nearby amenity is also good business – if a number of complementary businesses are situated nearby, you can count on increased foot traffic.

The interior fit-out is also critical for a happy staff, “Look for things like openable windows, natural light, landscaping, and other features which give a property that ‘feel good’ vibe. Modern Factory space should include high-speed fibre optic internet connectivity – make sure you ask what internet supply options are available and consider the connection costs.”

“Power the main component of a Manufacturing unit “

You need to check whether there is adequate supply of power as per your requirement also if there is staggering or not.

“If there is a power cut for 1 day in week then your productivity decreases by almost 14% per month which is direct loss”

So major factor being supply of adequate power without interruption.

The Support System

Before taking the final step the most important thing to keep in mind is the support system, ancillary industry (forward and backward integration for your products).

You would not want to incur the cost of transportation for the raw material you buy or the semi-finished product you buy, or the or for the finishing job

It’s then important to check whether your support system is there in that locality or not.

“like if you are from Printing industry you should have a punch maker or CTP plate maker nearby for smooth functioning of operation , likewise for plastic industries there has to be a die make nearby .

Benefits & Incentives

Also ask about incentives, which are usually offered in certain areas for certain periods of time, and can include Stamp Duty waiver, Power Tariff Reductions, and other benefit on various taxes.

The final word

“Choosing the right space to suit your business is important,”

“Make sure you are in a growing location, with easy and direct access and excellent staff amenity. Don’t be afraid to ask questions, do your homework on the total (gross) cost, so you’re comparing apples with apples, and make sure to inspect the building and the amenity of the surrounding area thoroughly before making a decision”.