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I have been involved in some big projects around the world-many in the hundreds of millions of dollars. I have gotten over the finish line on all of them (yeah me!). It’s a big relief when the site is selected, and the first shovel is symbolically thrust in the ground. My favorite is in Japan. Jichinsai is a Shinto ritual that takes place before construction begins. Thirty years ago I was a newbie on this ritual, but was in awe with the ceremonial process. I also liked the sake….
Around the world, when companies announce a major manufacturing operation, most of the attention focuses on where the facility will be located.
In the U.S. :
The state wins the project.
The county celebrates.
Economic developers issue press releases.
Executives stand in front of renderings and break ground (Still not as elaborate as Japan).
But from an operational perspective, selecting a site is often only the beginning.
In many large manufacturing projects, site selection represents perhaps 20% of the overall journey. The remaining 80% is the difficult work of turning a location decision into a functioning operation. Usually, the executives turn the project over to the project management and finance teams-rightfully so. But I believe a more critical long-term overview should be done by everyone. The companies that understand this distinction are often the ones that transform a successful site selection into a successful operation.
Over the years, I have observed a common misconception among both domestic and international companies: the belief that once a site is selected, the project largely takes care of itself.
The reality is very different.
A major manufacturing investment immediately enters a new phase involving dozens of stakeholders, multiple levels of government, utilities, contractors, educational institutions, workforce organizations, regulators, and community leaders. Each has a role to play in determining whether the project remains on schedule, stays on budget, and ultimately succeeds.
A modern manufacturing project requires much more than securing land and incentives. Consider the challenges of TSMC in Arizona, Stratos Data Center in Utah, Fuyao Glass in Ohio. Enough said….
Companies must coordinate utility infrastructure, transportation access, workforce recruitment, training partnerships, permitting processes, environmental reviews, housing availability, community integration, and long-term stakeholder relationships. In many cases, they must also navigate changing federal and state policies that can materially affect project economics.
For international companies entering the United States, these challenges are often magnified. While the United States offers tremendous opportunities, it also operates through a complex system of federal, state, county, municipal, utility, and regulatory authorities. Understanding how these entities interact—and who can actually solve a problem—can be as important as selecting the right location.
Hiring employees is an example.
The process of hiring is not simply a human resources function. It often requires coordination with community colleges, technical schools, workforce development boards, local governments, transportation providers, housing stakeholders, and economic development organizations. Successful projects begin building these relationships long before the first production employee is hired.
The same principle applies to community engagement.
The strongest projects are not those that merely arrive in a community. They become part of the community. They establish relationships with local leadership, educational institutions, workforce partners, and civic organizations. They communicate openly about opportunities and challenges. They become long-term contributors to local economic growth. Think about it. Opening a foreign invested plant with dozens of foreign workers (let’s talk about visas and localization of talent in another article), means considering changing offerings in restaurants to grocery shelves. It means evaluating local transportation availability. Short and long term housing has to be considered.
Contractor procurement presents another challenge that is frequently underestimated. Selecting a general contractor, preparing effective RFPs, evaluating bids, coordinating engineering and construction teams, and maintaining project alignment can have significant implications for cost, schedule, and execution risk.
Even after construction begins, the work continues.
Projects must monitor incentive compliance obligations, legislative developments, regulatory changes, workforce commitments, infrastructure milestones, and operational readiness. Many incentives are earned only if specific commitments are met over time, making ongoing coordination critical.
The most successful manufacturing investments recognize that site selection is not an isolated event. It is the beginning of the journey.
About the Author
Gary Sumihiro is a global investment advisor and strategist. He is a board member of EDGE Partners and the founder of Sumihiro Investments. Mr. Sumihiro was previously appointed by the U.S. Secretary of Commerce to serve on the U.S. Investment Advisory Council. In May 2026, Mr. Sumihiro judged and spoke in the U.S. Department of Commerce’s SelectUSA Summit in Washington D.C. Most recently, he was interviewed by the Yomiuri Shimbun, the world’s largest newspaper – see article here with translation.
For EDGE inquires, please email us at gsumihiro@edgepartners.us