Facility Planning Solutions

What is Strategic Facility Planning?

Whether you are considering the evaluation of one facility or a reconfiguration of your entire network, a Strategic Facility Plan (SFP) helps companies blend strategic goals, operational planning, and real estate to create 2-5+ year plans that create flexibility, competitive advantages, and increase enterprise value. Our SFP process helps management teams quickly and cost effectively compare current vs. future state impacts to EBITDA by evaluating all relevant facts and risks such as, but not limited to capacity, throughput, inventory strategy, facility size/layout, best locations (site selection), labor, supply chain impacts, government incentives, real estate costs, tax related issues, and other key areas leadership finds relevant for the particular project.

Program & Project Management

• Program, project, and construction managers are not all created equal. They all have specialty niches and areas they excel. Finding the right match for our clients projects is paramount. We act on our clients behalf to help build the team and Program Manage the project from concept to completion. Our job is to free up valuable time, make sure the project stays on time and budget, and make sure all of the right questions are being asked throughout the entire process.

Feasibility Studies

• When you need help evaluating a consolidation or new growth market to expand into, our teams experience is just what you're looking for. We know how to assemble and manage the entire process. Depending on the level of detail you are looking for, we can traditionally provide a full Strategic Facility Plan within 8-12 weeks. This critical management presentation provides current vs. future state impacts to crucial areas of the business that are necessary to make a smart decision and get your project approved at the board level.

Greenfield Build-to-Suit

• Our team members have been involved in millions of square feet of greenfield construction projects. We are experts at upfront planning and know how to integrate and manage all of the critical components of a project. We understand the importance of creating current vs. future state financial models early in a projects life cycle and how to help management teams get there quickly and efficiently. We help to assemble and oversee the team that will calculate impacts to throughput, capacity, headcount, office and/or plant layout, pallet counts, inventory strategies, facility prototyping, site selection, incentives negotiation, broker procurement, developer and/or general contractor procurement, construction contract negotiation, facility closures & dispositions, equipment and move coordination, and new facility setup. We are there with you from conception through completion. We will go as far as to make sure you have the correct phone systems, security systems and anything in between.

Brownfield Retrofit

• Brownfield retrofits are often times very similar to Greenfield project execution. The same processes are applied. Many times, when dealing with complex manufacturing or other process heavy uses, brownfield retrofits are riskier and more complicated than a greenfield construction project. When comparing existing facilities, it is vital to understand how column spacing, clear height, and building configuration can affect square footage needs, as well as specific improvements needed to the infrastructure of the building. As an example, engineering issues related to floors, roof, power, HVAC capacity, and structure need to be evaluated before any decisions should be made. Companies oftentimes buy or lease a facility without doing enough homework, which leads to delays, costly overruns or other missteps. Can you produce what you think you can? How much do you really need to invest in CapEx? What are the pitfalls of the building? How many pallets fit? How much additional capacity will we have? What will our throughput be? How much room for revenue growth & future bolt-on acquisitions? What are your permitting concerns? Where can the project get delayed? What are your risks?

Facility Expansions

• Facility expansions and office remodels can be daunting tasks. Let us help you plan and manage the entire process. We are experts at procuring and managing all key providers such as architects, engineers, general contractors, government incentives, equipment providers, and any other key critical vendors needed for a successful project. We know how to schedule and create the least disruption to your existing operations.

Brokerage Selection & Oversite – Purchase, Sale & Lease Negotiations

• Regardless if it's a lease renewal, a new facility lease, or a building purchase it's crucial to make sure you have an advisor that understands your asset class, use, market conditions, local landlords, and has a deep understanding of your business operations. Before signing a lease or buying a building, below are examples of questions to ask: How do our terms compare to the past 12 months of lease executions or buildings purchased? Are we sure we see all of the options in the market? Did we receive government incentives? What is our process to make sure we don't leave anything on the table? Is the labor market sustainable over the next 5-10 years? Do we understand the brokers compensation structure? If we're leasing the building, do we know the condition of the major systems and components of the facility? Did we appropriately negotiate the Tenant Improvement Package to allow for optimal lease accounting? If we plan on renewing our lease how do we create the most leverage?

Sale Leasebacks

• Sale-leasebacks are a common tool used by many of our clients. Examples of questions we help them quickly answer are: What are the assets worth? How do we protect ourselves from a re-trade? What government incentives can we receive? Who is the best advisor to hire based upon asset class, size of sale, and location? What is the correct commission structure? How quickly can we receive the funds? Can we close on the purchase of the business and buildings at the same time? Can we participate in the upside we create with the signing of the new long-term lease?

Site Selection

• Site Selection is the marriage between all key data points necessary to find the right location for your company’s success. In many cases there can be hundreds of variables that shift as the project progresses. We create a fact-based approach that helps weigh the key drivers that are most important to short and long-term success for your project. When you are looking to open a new facility or find a new growth market, we are there to help management teams ask all the right questions and get the answers board members need. Anything from labor, logistics, government incentives, supply chain, real estate costs, tax issues, regulatory concerns, or any other unique data set requirements are taken into consideration. We will help you manage and find the appropriate customized solution for your business.

Labor Analytics

• In today's changing world, top-notch labor analytics is more important now than ever before. The days of using government databases to make decisions should have passed you by. The war on talent is real and miscalculating wages can crush margins or sink a business. It is critical to understand not only the current labor cost and availability, but also the long-term view of a market. What can you expect from unplanned absenteeism, drug test failure rates, and underemployment. What are the other employers in the area dealing with? Have you talked to other business leaders in the region? What sources of data are you using? Are you an employer of choice? What type of turnover are you projecting? We help you answer all of the difficult questions around your current or future labor force.

Government Incentives

• Government incentives are one of the most underutilized tools available to companies, with billions of dollars going unused every year. Most companies only peruse incentives during major relocations, which is a big mistake. Companies can often offset annual CapEx spends by 5%-20% depending on location and census tract, transformational projects can often be offset by 15%-40% , and annual labor costs reduced 1%-5% by using federal, state, and local training grants. Make sure you know all of the trigger events and the timing necessary to capture the programs. For example, very few companies explore incentive opportunities before a lease execution, in advance of a sale-leaseback, or before making new acquisitions, oftentimes leaving millions of dollars on the table.
• Companies also need to understand how to de-risk claw-backs, know that many programs can be front-ended, and the many creative approaches to maximizing incentive packages.
• Don't ever forget that the first offer you receive is just that, a first offer. When your next trigger event occurs, how will you create leverage and know that you didn't leave anything on the table?