The influence of the physical location of a plant is often underestimated. It is a broad range of parameters that will have an effect on the cost price of your product when comparing different location. Even looking at different locations within 1 country, this can be the case. If we split these influences into 2 main categories we are looking at investment costs of a plant and all other factors that influence other fixed and variable costs. Since the diversity between locations incorporate many parameters it is a complex exercise to obtain an objective analysis. However in a rapidly globalizing business world and faster pace of development it is all the more important to consider the most influential parameters for your product cost price.

Fig. Estimate breakdown structure for the relocation

Some process choice parameters that can have a large impact on initial investment and variable costs:

  • availability of materials, hence needed import
  • availability and quality of resources, from engineering up until construction and production resources
  • energy and utility consumption
  • plot plan and site conditions, such as soil, existing integrated site or not, etc
  • climate
  • exchange rates, labour rates, labour efficiencies, etc.

Maturus Optimi applies different techniques and expert software that can quickly and reliably analyze the project global relocation at a very early stage. This allows our clients to look at several locations worldwide at the same time. For more information please contact us.