Challenges are always a part of business transition. But plant relocation is one of the most challenging tasks. Thus, it is crucial to plan and carry out the factory relocation, utilising a well-defined and tried strategy since some industrial equipment may be extremely sensitive and easily damaged. At times, it is also necessary to prioritise certain movables to ensure a smooth relocation process.
When we discuss the process of a factory relocation, the cost is one of the most important and crucial factors to consider. And understanding all aspects of the costs that are involved in plant relocation will put you at ease.
How Much Does It Cost to Move a Factory?
Before we dive deep into the cost of relocating the factory, let’s look at the factors that add up to the final cost of relocation.
- Distance: The distance between the new factory and the old factory will determine a large part of the cost of relocation. Also, the terrain of the route plays an important part in the cost calculation. For example, if either or both of the locations are in a hilly region the cost is most likely to be higher as compared to the plains.
- Location: Location also matters a lot. If the location of the factory is in a crowded area or an area not easily accessible, then the cost of labour (manual/machinery) involved will easily shoot up.
- Type of goods: Is it the office supplies? Or furniture or heavy machinery? The type of goods and materials to be moved is an important factor in calculating the cost of the relocation. A complete and detailed inventory of all the goods to be relocated will help you get a faster quote from your logistic partner.
- Packaging: There are various types of packaging materials, and processes involved in factory relocation. Type of goods, weather, distance, and duration all play an important role in determining the real cost of relocation. Asking your logistics partner will help you acquire the necessary information to make the right decision.
Having all of the above information handy will help you get a realistic idea of how much the relocation is going to cost you. However to simplify it, all it boils down to is what is the weight and cubic volume of all the goods to be transported. This will determine how many trucks will be deployed, how many rounds these trucks will have to make, how much labour will be required, and lastly, what sort of machinery will be required to load and unload the goods.
How Do You Move a Factory?
We have collated a list of factors that entail a successful plant relocation. This should give you certain cues as to how to plan your factory relocation.
Choose an Experienced Speciality Packaging, Crating, and Shipping Provider
Plant relocation is a complex business activity. Having an experienced partner who has executed factory relocation helps a lot, it saves time and money. There are various logistics companies out there who specialize in the packaging, crating and shipping aspects of the plant relocation. Choosing the right company based on their experience should be your first priority.
Make a Relocation Strategy and Timeline
It is vital to understand what goes where in your new location. However, you must also decide the best sequence for disconnecting, disassembling (if necessary), preparing, crating, and transferring objects out of the old facility, and then define those processes for the new site. The sequencing of activities is often critical to the success of plant relocation. If possible, extend your timeframe to accommodate for any complications that may develop during the migration. Having a good 20% buffer time for relocation is a good practice.
Make a Thorough Inventory List
It is critical to create a detailed checklist of every item that will be handled by the specialized crating and shipping company you choose. If a specific item is left behind or misplaced during the transfer, it will be easy to trace it with your inventory list. This will reduce operational friction and make the whole transition very smooth.
Make Agreements with the Utility Companies
Will utilities such as power and water have to be turned off while the equipment is installed and prepared to begin the operations of your factory? Or is it activated when you take ownership of the property? Whichever is the case, make those plans as soon as possible.
Use the Knowledge of Internal Experts to Prepare Crucial Assets for Transportation
People who operate and/or service your machinery and equipment are ideally placed to devise a strategy for preparing the goods to be relocated. Gather their feedback and then act on their recommendations as soon as feasible.
Create a Path for Assets to Take from Their Existing Position to the New One
Will doors need to be removed from their hinges, passages widened to allow more room for heavy goods, or will other structural modifications be required? Is it necessary to safeguard or modify the flooring surfaces? Also, for particularly large goods, will clearance or a licence be required to transport the assets on public roads? Thinking through these challenges and making the required preparations can help to avoid delays.
Carry Out the Move and Conduct Post-move Inspections
Whether the relocation is done all at once or in stages, you should go over your relocation plan and checklists to confirm that all necessary procedures are taken and that all relevant assets have arrived at the new location and are in working order.
Conclusion
Based on our experience, we feel the above points and information will help you plan your plant relocation in the most efficient way. In case you would like to talk to our relocation experts, please drop us a line on ship@txintlfreight.com or call us on 877-489-9184.
