Location Velocity: Good Today, But What About Tomorrow?

Location Velocity: Good Today, But What About Tomorrow?


September 2007

This article examines the dynamic referred to as "Location Velocity." Simply described, location velocity embraces the concept that an apparently excellent area for a new facility could turn into a markedly disadvantageous location due to a significant influx of comparable businesses. This influx could strain an area's resources - especially labor market and infrastructure. The end result often features overheated demand for requisite labor, dwindling supply of qualified workers, escalation of wages / salaries, rising turnover, traffic congestion, longer commutes, increasing taxes, and higher real estate costs.

Keywords: location velocity, site selection, operating conditions, churn, location screening, labor demand, labor supply, global

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