Choosing the Right Site for Industrial Warehousing

Choosing the right location for a warehouse is a strategic decision that can impact the company’s operations significantly as it is greatly dependent on storage and distribution facilities. So, while making such decisions, there are several factors that come into play, be it taxes, labor availability, transportation, and so on.

    • Rent and taxation for warehouses

While cost remains crucial in determining the optimal warehouse location, it should not be the sole consideration. Hidden expenses can negate potential savings from lower rental rates, making it imperative to take them into account. Warehouse rental rates in the United States are typically calculated per square foot (SF) on an annual or monthly basis, depending on the landlord’s terms. 

Average prices in the US can vary widely, ranging from as little as $2.56 per SF per year to as high as $16.50 per SF per year.

  • Availability of labor 

While selecting a warehouse location, it is essential to evaluate the accessibility of skilled labor in the vicinity. This can contribute to guaranteeing the efficiency and effectiveness of your warehouse operations. Apart from assessing the availability of skilled labor, it’s equally important to factor in the labor expenses in the region. Labor costs can significantly differ based on the geographic area and industry. Opting for a warehouse location with cost-effective labor can lead to lower operational expenses and enhanced profitability.

  • Customer Proximity

When making decisions about warehouse location, it’s crucial to consider the proximity to your customer base. Selecting a warehouse close to major population centers can lead to reduced transportation times and expenses while enhancing overall customer satisfaction.

  • Roads, Highways, and Traffic Considerations

When evaluating potential warehouse locations, it’s essential to take into account accessibility to roads and highways, as well as the level of local traffic congestion, particularly if trucking is the primary means of transportation.

The selection of a warehouse location involves a multifaceted evaluation. Cost, while important, should not be the sole determining factor, as hidden expenses can offset savings. Considerations such as labor availability, proximity to customers, and transportation factors all play a crucial role in ensuring the efficiency and competitiveness of a warehouse facility. 

So, if your business needs efficient storage and distribution solutions, turn to 9606 Capital industrial warehousing solutions for their expertise in optimizing warehouse operations. They understand your needs and will deliver you services as per your requirements.