A Fortune 100 contract manufacturing company was looking for the ideal location for a new plant in Central and Eastern Europe. The contract manufacturer (CMO) wanted to produce electronic parts for autonomous driving and the healthcare sector at the new site. In the first phase, 1,500 employees were to work at the new site; the workforce was to grow to up to 6,000 employees in the final phase. As an expert in location search and analysis, the interim manager was tasked with finding suitable properties in CEE.
List of location factors drawn up and 20 countries examined for suitability
In consultation with the client, the interim manager initially developed a comprehensive list of requirements that the new location should fulfill. For example, the client demanded that the new location should offer personnel cost savings compared to an existing plant in Hungary and have an optimal infrastructure for future production. One of the key requirements was that sufficient highly qualified engineers and specialists for autonomous driving and healthcare products should be available at the new location.
Analysis of macro and micro location factors: five regions identified
On the basis of this list, the interim manager began an analysis of the macro and micro location factors in 20 countries in Central and Eastern Europe and identified five countries that offered the greatest opportunity to achieve the objectives. He then examined regions (districts) in the five countries with a particular focus on the total expected personnel and logistics costs, the logistics infrastructure and the local educational opportunities. After this in-depth analysis, three regions remained on the shortlist.
Selection in detailed analysis limited to four cities in three countries
In the next step, the interim manager examined the demographic development, the labor market situation and the competitive situation on the labor market, among other things, in a detailed analysis of the remaining regions. He also updated the total personnel and logistics costs. At the end of this process, four cities in Croatia, Serbia and Romania remained in the selection.
After the interim manager had found suitable properties in the cities, he contacted the local authorities to find out whether they were willing to host the large-scale project. He organized meetings for the client with public representatives, local service providers and benchmark companies. These visits helped to further evaluate the advantages and disadvantages of the locations and to obtain a comprehensive picture of the conditions and support options.
Successful completion of the location search and implementation preparations
On completion of the evaluation phase, the interim manager drew up a decision paper for the senior management team. A location in Croatia was ultimately chosen. After the location decision was made, the interim manager played a key role in applying for and approving funding as well as obtaining environmental assessments and building permits.
Cooperation initiated with educational institutions for skilled workers
In order to ensure the long-term availability of qualified skilled workers, the interim manager also initiated cooperation with a vocational school and a university. Two programs were developed together: a summer academy at the university, which makes it easier for older engineers to switch to the new industry and provides graduates with the knowledge they lack, and operator training with the vocational school, which prepares the unemployed for work in the electronics industry in an eight-week program.
