Benefits of a Market Analysis for a Business or Industrial Park

A critical, often ignored step of industrial park development that has an initial cost but will reap many thousands of dollars in cost savings as well as hopefully a very large revenue stream down the road is a market analysis that is completed as part of a master plan for an industrial park.

First, a Market Analysis must be defined to determine why this is such an important step. A market analysis provides information to those devleoping the industrial park as to where they sit in the industry landscape. Such items that are examined are:

• Labor Availability
• Transportation infrastructure
• Real Estate Availability and Cost
• Educational Characteristics
• Unions and Labor Relations
• Utility infrastructure
• Tax laws
• Incentive programs
• Quality of Life

There can be more criteria examined but this gives a basic listing of assets an industrial park has to present to prospects.

Once this analysis is complete, a recommendation can be made as to what industry groups are a fit for the above characteristics of a particular site. At this point, a more targeted approach can be made to specific industries and contacts within those industries to determine who is interested in the park. In a day and age where funds have to be stretched and budget belts are tightened, this type of analysis provides a more efficient use of business development dollars. The process of landing prospects is highly competitive, so funds need to be spent wisely before initiating pursuits for prospects. At the back end of the process, when prospects from industries become tenants in the park, their business should prosper since it has previously been determined through the process above that their business and logistics characteristics match the park they have chosen to land in.

The market analysis is one small piece to an overall planning effort of an industrial park, but with the right analysis complete, it should be a win-win for the locals managing the park, the prospects that eventually occupy the park, the citizens of the local unit of government surrounding the park, and the subsidiary businesses that have a stake in the park.

For questions or to discuss further, either comment below or you can reach me at jrlackey@transystems.com.