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When expanding or starting up a manufacturing business, making the choice between building new from the ground up or buying existing facilities can be important in terms of budget, timeline and operational success. With that in mind, in this blog we will break down both options to help make sure you make an informed decision that’s right for your business.
Building Your Facility: A Tailored Approach
When building your manufacturing facility from scratch, you are faced with an undefined canvas and various considerations when creating a space from nothing. Here are the advantages and challenges associated with creating such an endeavor from the ground up.
The Big Benefits of Building
Customization Galore
Building is the ultimate means of customizing to meet the unique requirements of your operation. From high ceilings for advanced machinery to eco-friendly features that make you the greenest factory on the block.
Scalability for the Future
Planning to grow your output? Custom-built facilities give businesses looking to expand the ability to design with expansion in mind. Extra space for equipment purchases or additions as well as space to incorporate robotics integration can all be integrated into your facility plan from day one.
Use a Design-Build Construction Company
Cooperating with a design-build construction company simplifies the entire process of creating your dream facility. This approach brings design and construction services under one contract for easier collaboration and quicker project timelines. By working with just one team, communication errors are reduced significantly along with unexpected delays.
Modern Technology Integration
Building allows you to take full advantage of modern manufacturing technology without retrofits. This gives your manufacturing operation a distinct competitive edge in an industry focused on automation, IoT, and energy efficiencies.
Building Obstacles
Time, Time, Time
Building takes time, remember Rome wasn’t built overnight either. With construction timelines often stretching into months (or more) which could put off production goals and derail your production goals.
Cost Overruns
While an estimate can provide an ideal starting point, unexpected expenses often pop up. Weather delays, material price increases and changes all add up quickly, making budgeting a difficult balancing act.
Regulatory Red Tape
Building requires dealing with numerous regulations, permits, environmental impact assessments and paperwork you never knew existed, which can become quite an administrative hassle. Navigating this bureaucracy can be its own marathon.
Buying a Facility: The “Move-In-Ready” Option
On the flip side, purchasing an existing manufacturing building can provide you with a “Move-In Ready” option. Similar to buying pre-furnished furniture, although each building may present unique quirks and considerations that need to be addressed prior to moving in.
The Advantages of Buying
Speed to Market
If time is of the essence, buying is often the fastest route to success. Once the deal closes, machines could begin operating within weeks rather than months (or years).
Cost Predictability
Although the initial sticker price might seem steep, at least you know exactly what your costs will be upfront and there’s less chance of unexpected expenses compared to building. This financial relief can make life simpler.
Established Infrastructure
Whilst existing facilities may have developed over time, their utility connections, parking layouts and employee amenities should already be functioning smoothly. This can significantly simplify logistical processes.
The Challenges of Buying
One Size Rarely Fits All
Acquiring an existing facility comes with its own set of challenges. Perhaps its layout doesn’t meet your specific requirements or there is no room to expand. Your business may end up retrofitting or working around any design flaws that exist within its walls.
Outdated Features
An older facility may need upgrades in order to comply with current safety, environmental, or manufacturing standards. From wiring modern equipment to replacing HVAC filters, unexpected costs associated with upgrades may arise.
Limited Location Options
Finding an “ideal” pre-built facility can feel like searching for a needle in a haystack. But with limited location options available to you, finding such a facility should not be an impossible thing.
The Middle Ground: Build Then Buy?
A hybrid approach may offer some advantages. Purchasing and renovating facilities at the same time offers both speedy implementation as well as opportunities for customization, providing a compromise solution between time, budget, and flexibility (if you can bear to compromise).
Conclusion
Building or buying your manufacturing facility should ultimately depend on how it fits with your company’s goals. Building offers the flexibility to customize to the future while buying can get you up and running more quickly with less upfront headaches. Either way, taking the time to assess your needs and consulting experts will enable you to make an informed decision that supports growth of your company. Just remember that in the end it isn’t about just the building. It’s all about what business you are building within it. So make an intelligent choice.
