Michigan Food Manufacturers Insurance: Choosing a Facility Location

Michigan Food Manufacturers Insurance: Choosing a Facility Location Michigan Food Manufacturers Insurance Choosing a Facility Location

Food manufacturing can be a lucrative business, especially with many communities now offer multimillion dollar public subsidies to encourage food producers to bring their operation, and accompanying job opportunities, to their local. While these subsidies can be extremely enticing, not every location is fit for food manufacturing. This process has recently led to facilities being constructed in inadequate locations and densely concentrated in some areas more than others. As such, choosing the right location that will be most beneficial to your operation can be quite a challenge.

According to experts there are a number of factors that manufacturers should consider before solidifying a new facility’s location. The influences include environmental factors, business model, accessibility, production capacity and future growth projection, to name a few. Your business plan should be the true basis of where to properly situate your facility. Doing so will help ensure that the needs of the business are being met, risks are being reduced and that you are establishing the operation in a location where it can prosper and grow.  Here are a few factors experts suggest that Michigan food manufacturing operations consider while selecting a site for a new facility:

When choosing a location, it can be beneficial to keep present and future needs in mind. Choosing a location that affords the business the ability to expand in the future can save an operation from having to relocate down the line. Understanding the geography of an area in terms of accessibility, environmental stability, government regulations and land conditions is also a critical factor in determining whether or not a location is suitable to establish a food production operation. Consider a locations proximity to existing transportation infrastructure, roads, highways, alternate routes, customers, etc. Efficient transportation is critical for any manufacturing operation, but when food concerned there are much higher risks involved with shipping and receiving goods and supplies in a timely manner. Speedy transportation is especially important in the food manufacturing industry because food spoilage and contamination can be costly liability issues which can lead be a catalyst for business interruption and other complications. Access to a steady supply of utilities is vital as well. When choosing a location business owners should investigate whether an adequate energy supply source is readily available in a given area. Michigan food manufacturers must not only be concerned with their own environmental impact, but they should also be mindful of the possibility of contamination from outside sources.

When establishing a food production operation, it is important to make careful decisions and evaluate the risk exposures which can accompany and new enterprise. At Capital Insurance, we specialize in helping Michigan food manufacturers mitigate the wide variety of unique risk exposures these operations commonly face. We can help any operation find comprehensive Michigan food manufacturers insurance programs and risk management solutions to meet their unique needs. Our complete Michigan business insurance portfolio includes essential and extended policies customizable to fit the needs of your operation. Give our specialists a call at (877) 755-3767 to learn more about our comprehensive Michigan food manufacturers insurance and other offerings today.