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It all Starts with Site Selection

Maribel Gaytan • 7/13/2022
One of the most frequently asked questions we receive from our clients is, “Where is the best place to locate my new production facility in Mexico?”

This is an important question because setting up operations in Mexico is a serious commitment, and the logistics should be approached carefully. Instead, the decision is all too often based on something they may have read somewhere or even on an unsubstantiated recommendation from one person they know.

But as real estate advisors who hear this question repeatedly, we have one simple answer to this question: Site Selection Analysis.

Mexico’s industrial areas are diverse and dispersed throughout the country, comprised of large and small urban regions, multiple industrial clusters, and varied distances from suppliers and markets. With all these factors to consider, selecting the right location for your business can be a challenge, and the best decision can only be made with reliable data and fact-based analysis. An investment of this kind should not be based on a simple recommendation or a gut feeling, but should instead be backed with real information. That is precisely when Site Selection comes in.

Location strategies present inherent tradeoffs between access to the right kind of labor, cost efficiencies and the impact of competition for talent. Cushman & Wakefield’s approach is designed to identify an optimal solution that integrates all aspects of real estate and business alignment.
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Our consulting services begin with an assessment of the project needs. We work together with our clients to identify and evaluate cities based on defined critical location and labor market parameters. Using our resources and methodology, we identify, collect, and analyze the criteria for each location in order to develop a short list of potential locations. The information collected includes a comparison for each critical factor such as labor stability or crime and safety, along with the estimated operating cost for each location. The evaluation of these quantitative and qualitative factors will then lead to an in-depth report that will also include our recommendations.

So, when our clients are looking at optimal locations in Mexico, our Site Selection Analysis team ultimately provides the tools necessary to ease the decision-making process while simultaneously maximizing their project’s chance of success—leaving our clients feeling much more confident about their decisions.

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