Food manufacturing is a dynamic and constantly expanding industry. Not only can food manufacturing be a lucrative business, many communities now offer multimillion-dollar public subsidies for a manufacturing plant to choose their location to call home. These subsidies hope to attract large processing operations and create job opportunities for the local residents. However this process has led to plants being constructed in unfit locations or densely concentrated in some areas over others. While these deals may be ideal to starting up a new facility, in some cases they may always be in the manufacturer’s best interest.
According to experts there are a number of factors which should be considered before choosing a plant’s location, including environmental factors, business model, accessibility, production capacity and future growth projection, just to name a few. Your business plan should be the true foundation of your site-selection process, as to best ensure that the needs of the business are being met, risks are being reduced and that you are establishing the operation in a place which will allow it to thrive.
Here are a few factors experts suggest that NJ food manufacturing operations consider while selecting a site for a new plant. :
- Understand the location: It is important to consider land availability now and in the future ,if growth becomes an option later down the line. Choosing a piece of property with the present and future in mind can save an operation from having to relocate later. It is also essential to understand the geography of an area in terms of accessibility, environmental stability, government regulations and land conditions.
- Utility and water costs — One of the largest expenditures faced by many NJ food manufacturing operations is are the costs of operation, such as water, electricity, fuels and other essential utility fees to keep machinery running and products coming down the line. Creating understanding your usage needs will help manufactures address these needs right from the start and ensure that the plant is designed with these needs in mind. When selecting a site, it is essential to ensure that an adequate energy supply source is readily available.
- Think about transportation- Consider your locations distance from customers, proximity to existing infrastructure to transport food goods from your production facility to their destination, and access to the supplies and materials you need. Speedy transportation is especially important in the food manufacturing industry because food spoilage and contamination can be costly liability issues which can lead be a catalyst for business interruption and other complications.
- Environmental issues — Not only must food manufacturers be concerned with their own environmental impact, but they should be mindful of the possibility of contamination from outside sources. This is a crucial consideration for food processing plants, because food goods are susceptible to harsh regulations and standards and there are many locations unsuitable for food production facilities.
At Vreeland, we specialize in helping NJ food manufacturers mitigate the wide variety of unique risk exposures these operations commonly face. We will not only put together a comprehensive NJ food manufacturers insurance program, but we’ll also help to evaluate your overall financial assets and operations to advise you on important areas of risk transfer and management. Our vast New Jersey business insurance portfolio includes essential and extended policies customizable to fit the unique needs of your operation. Give our specialists a call today at (877) 755-3767 to learn more about our comprehensive NJ food manufacturers insurance and risk management approach.