Site Selection

What are the Top Considerations for Reshoring Product Selection?

You know what you want to make, you just aren't sure where to make it. Let HermitCrab provide the guidance needed to make the best Site Selection.

Relocating manufacturing to Georgia and the Carolinas provides numerous benefits. Government incentives such as tax credits and grants reduce startup costs, while proximity to Southeastern markets minimizes shipping times and costs. The region boasts a skilled workforce with training programs tailored for manufacturers. Competitive labor costs help optimize expenses without sacrificing quality.

The states prioritize social, ethical, and green concerns, enhancing brand reputation for eco-conscious consumers. With low union penetration, businesses enjoy greater labor flexibility and fewer disputes. Innovation hubs supported by top universities foster continuous improvement and technological advancements.

Robust infrastructure, including transportation networks and high-speed internet, supports efficient operations. Numerous
shovel-ready sites facilitate quick setup, and access to major ports like Savannah and Charleston enhances global trade capabilities. A high quality of life, affordable cost of living, and vibrant cultural scenes attract and retain top talent.

Easy access to raw materials shortens lead times and cuts transportation costs. Altogether, these factors contribute to a lower total cost of ownership, making Georgia and the Carolinas an attractive choice for manufacturers looking to reshore operations and achieve long-term success.

What are the Top Considerations for Reshoring Site Selection?

1. Government Incentives to Relocate: Georgia and the Carolinas offer a range of government incentives to attract manufacturers, including tax credits and grants. These incentives can significantly reduce the costs associated with setting up and operating a manufacturing facility. Additionally, local governments are keen to support job creation and economic growth, further enhancing incentive packages. For example, North Carolina and South Carolina provide tax incentives for businesses that reoccupy and upgrade abandoned textile facilities, and all three states have Economic Development Programs to locate manufacturing in economically depressed areas.

2. Proximity to Customer Market: Relocating to Georgia and the Carolinas places your business closer to major Southeastern markets, reducing shipping times and costs. The region boasts a rapidly growing population and economy, providing an expanding customer base for your products. This proximity can lead to improved customer service and stronger relationships with key clients.

3. Skilled Workforce Availability & Training: The Southeastern U.S. is home to a well-trained and highly skilled workforce, with strong industrial and technical expertise. In addition, many community colleges and training centers offer customized workforce training programs tailored to meet the specific needs of manufacturers. This ensures a steady supply of qualified workers who can help drive your business success.

4. Labor Costs (Wages and Benefits): The Carolinas and Georgia offer competitive labor costs compared to other regions, providing significant savings on wages and benefits. Lower labor costs can boost your bottom line without compromising on the quality of your workforce. This makes the region an attractive option for manufacturers looking to optimize their expenses.

5. Social/Ethical/Domestic/Green Concerns: The region is increasingly focusing on sustainable practices and green manufacturing, meeting the growing demands for environmentally conscious production. State policies and community initiatives support ethical business practices and corporate social responsibility. This alignment with green values can enhance your brand reputation and appeal to eco-aware consumers.

6. Union Penetration: The Carolinas and Georgia have relatively low union penetration compared to other manufacturing hubs, providing greater labor flexibility. This environment promotes a more collaborative and adaptable workforce, often resulting in fewer labor disputes and disruptions. Companies can benefit from a more predictable labor cost structure and operational stability.

7. Manufacturing/Engineering Innovation Hubs (through Engineering and Business Schools): The presence of top-tier engineering and business schools fosters innovation and collaboration in manufacturing. Research centers and innovation hubs provide the infrastructure for cutting-edge developments. Businesses can benefit from partnerships with these institutions for research, development, and talent acquisition. HermitCrab will focus on partnerships with North Carolina State University (North Carolina), Clemson (South Carolina) and Georgia Tech (Georgia), all of which have specific programs dedicated to Manufacturing excellence.

8. Infrastructure Availability: The Southeastern U.S. offers robust infrastructure, including advanced transportation networks, reliable utilities, and high-speed internet access. This infrastructure supports efficient manufacturing operations and provides a strong foundation for business growth. Well-maintained roads, rail systems, and airports ensure smooth logistics and distribution.

9. Site Readiness: While HermitCrab focuses on reoccupying existing shuttered facilities in economically depressed counties, Georgia and the Carolinas have numerous shovel-ready sites and industrial parks, reducing the time and cost associated with land development. Regional economic development agencies assist in the site selection process, helping you find the perfect location for your operations. Ready-to-build sites mean faster setup and quicker operational launch.

10. Access to Ports & Logistics: The region's access to major ports, including the Port of Savannah and the Port of Charleston, enhances global trade capabilities. Efficient logistics and transportation systems support smooth import and export processes, improving supply chain efficiency. Proximity to ports reduces shipping times and costs, making international trade more viable.

11. Quality of Life: Georgia and the Carolinas offer a high quality of life with affordable cost of living, excellent healthcare, and diverse recreational opportunities. In addition to a temperate climate, the region boasts vibrant cultural scenes, outdoor activities, and family-friendly communities, making it attractive for relocating employees. This quality of life can help attract and retain top talent for your business.

12. Access to Raw Materials: The Southeastern U.S. provides easy access to a wide range of raw materials essential for various manufacturing processes. Proximity to natural resources and raw material suppliers can reduce transportation costs and lead times. This ensures a steady and cost-effective supply of the materials needed for production.

13. Total Cost of Ownership: Relocating to Georgia and the Carolinas can lead to a lower total cost of ownership by combining affordable real estate, competitive labor costs, and favorable taxes. These factors contribute to overall financial efficiency and long-term sustainability of your manufacturing operations. The comprehensive cost benefits make the region a smart choice for manufacturers.