Facilities management and organizational infrastructure

Business

Bit Technology

Bit Technology Inc., a high-tech manufacturing firm, is deciding where to locate its facilities. This decision should be based on several factors including cost, availability of skilled workers, proximity to shipping and trucking facilities to facilitate shipping products and receiving raw goods, and the ongoing costs associated with doing business in the area, for example, taxes, payroll, building lease or cost to build, etc.

Bit Technology may be looking at an overseas location, but they need to consider several factors before locating overseas. Can the local population support the company and are they highly skilled in high-tech work? Can they be trained? What are the costs of doing business overseas, including shipping and importing and exporting duties? What costs or tariffs will the country expect from Bit Technology? Doing business in foreign countries often seems much less costly, but many factors are in play, including the increased costs of shipping, importing goods for production, and tariffs the country may apply to the business. All of these must be factored in before a good decision becomes evident.

Locating the business in a well-known high-tech area, such as the Silicon Valley may work for Bit Technology, especially now that the "boom" has passed, and more room for growth is available in the Valley. Many other areas in the U.S. also offer high-tech companies incentives to move there, from South Carolina to Nevada, which has an advantage because there are several tax incentives to doing business in Nevada. These factors are also important when choosing a location to finally settle down and open the doors to business. It is also important to note whether there are facilities already available in a location that can be modified to meet the company's demands, or new facilities must be constructed. Construction costs in the particular area will become a factor in that case, too.