Influence of FM Factors on Location Decisions ofManufacturing Firms

This paper deals with two major questions (1) what alternatives does a manufacturing company has when current space use is not sufficient, or it exceeds its needs following changes and transformation of the business; and (2) what principal factors must be taken into account in the decision-making process about possible relocation. The corporate real estates of manufacturing firms in the Western world are very much similar to those of the tertiary sector. However, inertia compared to pure tertiary is apparent; a large part of the premises are in fact offices that to various extents are connected to stocks, laboratories, factories and manufacturing areas that cannot be relocated. Therefore intermediary alternatives between staying on the current location or total relocation have their reasons of being developed. This paper is based on literature studies and two independent surveys from two different geographical areas: Northern Italy and Sweden. Despite the various characters of the surveys, common conclusions can be made for a general understanding of the relation of FM factors that influence the location. A model is created that systematises location alternative when space change must take place and relates also to the European manufacturing sector of today.