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Key factors for choosing the ideal factory location: A guide to industrial site selection

26 October 2026

Industrial site selection is much more than choosing a point on a map. It is a strategic decision that affects costs, operational efficiency and growth capacity for decades to come. As consultants specialising in industrial units at Masachs, we work alongside companies that understand choosing the right location for their factory is a competitive advantage, not merely a property matter.

What is industrial site selection and why does it affect competitiveness?

Locating a factory involves analysing economic, logistical, regulatory and technical variables to determine the optimal site. A sound decision reduces logistics costs, improves delivery times and minimises risks in the supply chain.

This should not be confused with industrial offshoring, which involves relocating an existing activity to another territory in search of better cost conditions or a more favourable regulatory environment. Today, following recent tensions in global supply chains, many companies are prioritising reshoring or nearshoring strategies to build resilience and reduce dependence on overseas suppliers.

Key factors in choosing a location

There are traditional factors that remain decisive:

  • Availability and price of industrial land: surface area, buildable floor space and licensing timeframes.
  • Genuine logistics access: proximity to motorways, rail corridors, ports or distribution centres.
  • Talent and skilled labour: proximity to vocational training centres and universities.
  • Energy and infrastructure: available electrical capacity, grid stability and water or gas supply.

To these are added current strategic factors:

  • Digital connectivity for automated processes.
  • Tax incentives and institutional support.
  • Proximity to sector clusters.
  • Sustainability and access to renewable energy.
  • Regulatory stability and legal certainty.

Today, competitiveness depends not only on the initial cost of the land, but on the total cost of ownership over the medium and long term.

The value of professional analysis

At Masachs, we work with real market data, urban planning analysis and feasibility studies to identify locations suited to each production model. We assess accessibility, potential for future expansion and regulatory risks before finalising any deal.

Choosing the ideal location for a factory is not a decision to be made on a whim. It is a strategic investment that affects productivity, scalability and profitability. With the right advice, industrial site selection becomes a key asset for the sustainable growth of a business.

Pere Masachs
CEO de Masachs Industrial
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