To understand the location decision-making process it is important to distinguish location from site. A location refers to the general region and its characteristics. Basic location factors include:
-skill level and suitability of the labor market
-availability and cost of housing
-adequacy of transportation systems
-access to suppliers and contractors
-proximity to natural resources
-presence of competitors
-positioning within the market for the company’s product
-general taxation levels and tax policies of the state
-workers’ compensation costs
Once a location is found that fits the company’s strategy and cost structure, a site within the location is sought.
A site is a specific parcel of land and/or building(s). Sites too, have specific characteristics:
-road/train/truck access
-the presence or absence of tax liens
-title complexities on the property
-cost and availability of water, sewer, solid waste disposal
-telecommunications capacity
-possible environmental remediation
Within a given location there are likely to be many sites from which to choose, and there are nearly always alternatives if one site proves to be difficult or costly. Unfortunately, policy-makers have confused the two concepts, thus falling short of their announced legislative or regulatory goals. You might observe that the location of Florida Lumber Company at Miami, FL; ARTEMIS Environmental Building at Pittsburgh, PA; or Charlotte Bobcats Arena at Charlotte, NC are based on above discussion.