According to an article in Entrepreneur magazine, companies typically cite five main reasons for business relocation: labor and workforce issues, reaching new markets, upgrading facilities or equipment, reducing costs or increasing cash flow and quality of life considerations.
Business relocation also carries some pretty serious risks:
• The possibility of losing some of your customers
• Expenses that you didn't budget for
• The potential loss of valuable equipment
• Loss of essential employees who cannot or will not move with the company
Management needs to use every available tool to minimize the impact on operations while preserving financial solvency. Here are four tools that can help address some of the most critical factors that business faces during relocation.
Potential locations
The primary concern for any business that needs to relocate due to reasons as varied as expansion, reducing overheads or being closer to their customers' location. Management needs to be sure that the new locale is as favorable to business as possible and that requires an accurate, comprehensive and quick source of information on that company's potential new home.
Use IndustryNet's Expansion and Relocation Guide for business to discover crucial information about:
• Is it a right-to-work state?
• What is the total population?
• Which areas have the most manufacturing jobs?
Tax climate
Taxes are always an overriding concern for any organization. You need to know what reductions in tax liabilities that a new geographic location offers compared to the organization's old one.
Some localities will give tax incentives to bring new businesses to a community. These tax breaks can take the form of:
• Property tax abatement
• Sales tax exceptions
• Reductions in income tax
• Details regarding unemployment insurance tax
Sometimes, if a business meets specific criteria, it can relocate while reducing tax liabilities. Utilize the Tax Foundation's State Business Tax Climate Index and IndustryNet's comprehensive list of local tax facts and incentives to gauge how various states' tax systems compare.
Qualified workforce
Staff, as much as clientele, is an influential determining factor for the relocating business. Will the company be able to quickly recruit and retain the labor and management personnel required to continue operating at peak productivity?
The IndustryNet Expansion and Relocation Guide is also a comprehensive resource for mission-critical information that includes the leading manufacturing industries by number of employees, what are the largest manufacturing employers and what regions have the most manufacturing jobs.
Also, take advantage of the newly implemented Workforce Innovation and Opportunity Act (WIOA). WIOA is landmark legislation designed to both strengthen and improve the United States public workforce system:
• Innovation and Opportunity Network (ION)
• Office of Career, Technical and Adult Education (OCTAE)
• U.S. Department of Labor Employment and Training Administration
Assistance from nongovernmental organizations and agencies
Business incentives can be the crucial, deciding factor when choosing a new location. Businesses can contact the Small Business Administration to discover a plethora of programs intended to help organizations access loans, investment capital and grants.
The IndustryNet Expansion and Relocation Guide can help you discover a comprehensive list of nongovernmental organizations, agencies and programs that offer manufacturing related incentives that can help you take the next steps in your business relocation.
Additional resources for relocating your business
IndustryNet can also connect you with the right providers for your business move, including moving and storage companies and moving equipment and supplies. IndustryNet's listing of business relocation services can help you connect with state agencies and other resources to help with your relocation. Providing information on 400,000 U.S. manufacturers as well as suppliers of 10,000-plus industrial products and service, this free service can also help you connect with suppliers and service providers in your new location. To learn more, start your free search on IndustryNet.
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