Tips to Find the Right Location to Set Up a New Factory

You need to build a new factory when your company starts to grow bigger. If the product management or storage management disrupted, the production process is also disrupted. Therefore, build a new factory or renting a warehouse is a solution when the storage space at the factory is unable to accommodate the goods anymore.

Renting a warehouse might be a short-term solution. However, if you want to plan long-term business, build a new factory will be a good solution. Then, If you want to set up a new factory, the biggest challenge is to find the right location for your business. There are several things that you should consider if you want to find the right factory land for your new factory, such as:

Location and Distance

The first thing you should consider if you want to build a new factory is the location and the distance of the factory. The company must pay attention to whether the factory location is close to transportation routes or not. Why? Because transportation routes such as toll roads, train stations, ports, and airports are needed for delivery service and transportation needs.

The close distance to transportation will help the company to reduce shipping cost and time saving. Therefore, It will be better if the new factory location is close to the economic center, raw materials, and adequate labor Because It will help your company to work well.

Expansion Potential

The second thing you should consider if you want to build a new factory is potential for factory expansion. You should think that your factory is not only used for the next one or two years, but you must think that your factory can be used for the long term. Therefore, you should search for the factory location that has the potential to expand.

If the company continues to grow, it is better to expand the factory area rather than looking for a new factory land. Therefore, it's a good idea to look for factory land that can be expanded if needed.

Geography and Climate

One of the things that you should consider if you want to build a new factory is geography and climate of the factory location. Every land condition is different, the land near the mountain is very different from the land that is located near the coast. Furthermore, local geography also includes drainage and topology which will certainly affect construction costs in your factory.

The company should consider the shape and type of the factory based on the climate of the area. Therefore, you must think carefully about the geography and climate of your factory land.

Factory Function

The thing that you should consider if you want to choose a new location for your factory is the factory function because each factory has a different function or purpose. It is better if you decide the function of the factory first, before choosing a new factory and the most important thing is you should think about whether the factory produces a semi-finished product or finished product. That’s why You should make sure you know the function of the factory that you will build before choosing a new factory area.

Well, those are the 4 things that you should consider before choosing the location of new factory land. If you want to build a new factory, you should look for it in a strategic industrial area because it is close to transportation routes.

One of the industrial areas that has a strategic location is Karawang New Industry City (KNIC). Located close to the capital city of Jakarta and has plenty of transportation access, make KNIC a suitable area for building warehouses and renting warehouses.

In addition, KNIC has 6 national infrastructure access such as the Jakarta-Cikampek toll road, Jabodetabek LRT, Trans Java lines, Jakarta-Bandung Railway, Kertajati International Airport, and Patimban port. KNIC is also supported by facilities such as premium electricity, natural gas, and fast internet connections to support the performance of manufacturing companies.

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