T he stay-or-go decision often precedes site selection and typically presents BLS & Co.’s clients with a choice between expanding an existing facility or establishing a new operation at a different location. Each alternative offers specific advantages and challenges that must be carefully reviewed and understood. A host of factors must be analyzed to determine tradeoffs among operating costs and conditions, financial return and risk. Although the outlays can be substantial (relocation can easily cost $50,000 - $100,000 per employee and severance benefits can be almost as expensive), the decision must go beyond the potential return on investment to consider objective and subjective trade-offs associated with operating cost reduction, culture change, organizational disruption, span of control, market access and other issues associated with positioning for long-term growth.
BLS & Co. works with clients to identify and test alternative deployment scenarios (relocation, expansion, consolidation) then to understand both the one-time project costs and the impact of any changes on annual operating expense. We also identify and assess the possible impacts on the company, its people, customers, stakeholders, etc. Frequently such an exercise becomes a precursor to site selection efforts.