Relocating a factory or manufacturing plant is a complex undertaking that requires meticulous planning and flawless execution. Whether you are moving to a larger facility to support business growth, consolidating operations to reduce costs, or shifting production closer to key suppliers or customers, a factory relocation involves numerous moving parts that must be carefully choreographed.
While the specific steps and timeline will vary depending on the size and scope of your manufacturing operation, there are some key phases that every plant relocation project goes through.
From initial planning and budgeting to equipment decommissioning, transport, and reinstallation at the new site, each stage must be thoroughly mapped out to minimize downtime and ensure a smooth transition.
In this comprehensive guide, we’ll walk through the factory relocation process from start to finish. Our step-by-step checklist covers everything you need to consider and plan for to execute a successful manufacturing plant move.
With the right preparation, project management, and support from experienced shipping and crating specialists, you can avoid costly delays and resume full production at your new facility as quickly as possible.
Benefits of Factory Relocation
Factory or plant relocation can offer a ton of advantages for a growing business:
- Optimized operations: Moving provides an opportunity to redesign the facility layout and upgrade equipment to improve efficiency and productivity.
- Increased capacity: A larger space allows for adding more machinery to expand production and meet rising customer demand.
- Proximity to customers: Relocating closer to your customer base can reduce shipping costs and transit times, improving responsiveness and customer satisfaction.
- Access to talent: A new location may offer a larger pool of skilled workers to recruit from, helping secure the workforce needed for growth.
- Better infrastructure: Choosing a site near major highways, ports, or cargo hubs can significantly lower transportation and shipping expenses.
- Financial incentives: Many states and cities offer tax breaks, grants, and subsidies to attract manufacturing, which can offset relocation costs.
- Reduced overhead: Moving to an area with lower utility rates and facility costs can boost profitability over time.
The keys to success, as always, are working with an experienced team of professionals and having a detailed step-by-step plan to ensure a smooth transition.
Manufacturing Plant Relocation Checklist in 10 Steps
A well-orchestrated factory relocation delivers a larger, more efficient operation positioned for expansion. But achieving that outcome requires rigorous planning, coordination, and risk mitigation. By breaking the process down into phases and sweating the details every step of the way, manufacturers can minimize disruption and set the stage for future success in their new home.
1. Establish Goals and Timeline Before You Relocate Your Factory
The critical first step is clearly defining the reasons and goals for the move. Is additional space needed to increase output? Are there opportunities to cut operating expenses in a different locale? Would a new location provide strategic proximity to key suppliers or transportation hubs?
With core objectives established, set target dates for each major phase of the relocation – facility preparation, equipment transfer, resumption of production, and ramp up to full capacity. Build some buffer into the timeline to allow for the inevitable hiccups of a complex move.
2. Create a Detailed Inventory
To determine the scope of the relocation, compile comprehensive documentation of every asset that will need to be moved – production machinery, tools, IT systems, office furniture. Note key specifications like dimensions, weight, power requirements, and computer integrations that will impact packing and installation.
Don’t overlook items currently in inventory as well. Raw materials, work-in-progress, and finished goods will all need to be accounted for and transported. A complete inventory ensures nothing is missed during the transition.
3. Audit and Optimize Current Workflows
Before replicating processes in a new space, take time to critically analyze existing production flows, quality control measures, and material handling. Identify bottlenecks, wasted motion, or areas ripe for automation. Relocation provides a clean slate to optimize layouts and upgrade equipment to maximize efficiency.
Involve line workers in addition to engineers in the workflow evaluation. Frontline staff can provide valuable insights into the day-to-day realities and suggest opportunities for improvement that might not be apparent from a distance.
4. Design New Facility Layout
Armed with asset inventories and ideal workflows, map out the configuration of the new plant. Create detailed floor plans illustrating the placement of each piece of equipment and the paths of production flows. Optimize the design to streamline material handling, improve communication between departments, and allow for future expansion.
Use modelling software to simulate the equipment layout and virtually test production flows. Iterate designs to maximize the use of space while ensuring ergonomics and safety. A well-planned facility layout is crucial to a smooth relocation and efficient operation.
5. Develop a Phased Relocation Plan
With the target layout set, strategize the sequence of physically moving equipment and inventory to the new location. Often, the most efficient approach is a phased transfer of individual production lines or departments to avoid a complete shutdown.
Prioritize the relocation of equipment that requires the most extensive installation and testing. Plan to move associated raw materials and shipping functions in parallel so a complete process can be brought online before tackling the next.
6. Arrange for Packing and Crating
Relocating precision manufacturing equipment requires expertise beyond standard industrial movers. To ensure your valuable assets are properly secured and protected during transit, partner with Creopack for all your factory relocation crating and packaging needs.
Creopack’s team of industrial packing engineers will carefully assess each piece of equipment to determine the optimal crate design and materials.
From custom wooden shipping crates to vapor barrier foil pouches, suspension systems, and tilt indicators, Creopack will develop specialized solutions to safeguard your sensitive equipment from shock, vibration, moisture and mishandling.
Choose Creopack’s expert crate packaging services for the peace of mind that your assets will arrive at the new facility in pristine condition, ready for a seamless resumption of production.
Contact Creopack today to discuss your specific factory relocation needs.
7. Coordinate Equipment and Inventory Shipping
With packing underway, orchestrate the logistics of delivering the crated equipment and inventory to the new location. Time the shipments to align with the phased relocation plan, so items arrive on site just in time for installation.
For large moves, it may be prudent to divide heavy equipment shipments among multiple carriers to mitigate risk. Be sure to vet providers carefully, and opt for those with specific experience transporting manufacturing equipment and ample cargo insurance. Satellite tracking of shipments provides added peace of mind.
8. Manage Employee Relocation or Hiring
A factory relocation often requires shuffling of human capital as well. Determine which key personnel are essential to transfer to the new facility to maintain operational continuity. Provide relocation assistance including housing search support and moving stipends to retain crucial staff.
For positions that will be filled locally, begin recruiting efforts well ahead of the move. Partner with local job development resources to tap into the talent pool. Time hiring so that new staff can be trained by transitioning team members before the relocation is complete.
9. Conduct Safety Reviews and Workflow Testing
Before resuming full production, thoroughly inspect and test the safety and calibration of newly installed equipment. Conduct walk-throughs of the new workflows with staff, and do trial runs of each process. Evaluate performance against previous benchmarks and make any necessary adjustments.
Allocate ample time for troubleshooting and finetuning. It’s better to resolve any kinks before the pressures of full capacity production kick in. Confirm all safety trainings, equipment certifications, and regulatory approvals are squared away as well.
10. Analyze and Optimize
After the dust settles, assess the relocation outcomes against the original objectives. Did the move deliver the anticipated efficiency gains, cost savings, or growth opportunities? Solicit candid feedback from employees, customers, and vendors on their experience and satisfaction post-transition.
Keep a running list of any aspects of the new operation that need further optimization. Prioritize and methodically tackle the refinements to dial in performance. Ongoing continuous improvement will help recoup any productivity lost during the relocation.
Have a Machinery or Industrial Relocation Project? Creopack Has the Expertise.
Relocating a factory is a monumental undertaking with a lot at stake. Missteps at any stage can snowball into costly downtime, damaged equipment, and frustrated customers. That’s why it’s so important to approach a plant move with meticulous planning and methodical execution.
That’s where Creopack comes in. As industry leaders in industrial packing, crating, and equipment logistics, Creopack has the know-how to ensure your valuable assets are fully protected during transit. Our team of engineers will work hand-in-hand with you to design custom crating solutions tailored to your unique equipment specs and relocation timeline.
When you’re ready to start planning your factory relocation, contact the specialists at Creopack. We’ll apply decades of experience to make the packaging and shipping phase of your plant move a smooth one, so you can focus on the future in your new space.