Notes from the Field: How We Found a Factory in China in 3 Weeks — and Saved $100K

Our May report from the field is from a current client. The details of the engagement have been altered slightly to protect confidentiality.

China Site Selection: How We Found a Factory in 3 Weeks

The Client

The client is a U.S.-based company that provides outsourced manufacturing services to leading global manufacturers of heavy equipment and commercial vehicles, specializing in automotive systems and related components. They currently operate a small production facility in Shanghai — approximately 800 square meters focused on assembly operations, producing around 1,000 units annually to support their customer's manufacturing operations in China.

The Challenge

With growing demand in the Chinese market, the client decided to establish a new production line in China to manufacture products locally for direct domestic sale — strengthening localization and improving responsiveness to regional customers. Since the client's key partner operates a facility in Wuxi, Jiangsu Province, the new site needed to be within the Yangtze River Delta region.

MTG was engaged to identify suitable industrial facilities in Shanghai and surrounding areas. The timeline was aggressive: 1-2 weeks to deliver options. Deliverables included at least 3 candidate sites within Shanghai and at least 2 in neighboring regions. The client had clear expectations on total leasing and fit-out costs, with a strong preference for facilities already fitted out and ready for immediate occupancy. Target specifications: approximately 4,500 square meters with ceiling heights between 5 and 7 meters.

Week 1: Site Sourcing

The project launched on April 27. By the May Day holiday, MTG had identified approximately 20 potential sites — 13 within Shanghai and 7 in surrounding areas including Suzhou, Wuxi, Kunshan, and Jiashan.

Following an initial screening based on rent levels, property management fees, and rent-free periods, the shortlist was narrowed to 16 sites for on-site evaluation.

Week 2: On-Site Evaluation

From May 6 to May 9, MTG conducted site visits for all 16 locations. Based on these assessments, 8 sites were selected for client visits — 7 in Shanghai and 1 in Jiashan, Zhejiang Province. Most Shanghai options were multi-story facilities, with only one single-story site.

From May 12 to May 15, MTG accompanied the client during site visits and developed a structured evaluation framework with weighted scoring criteria across key decision factors.

Week 3: Final Evaluation and Recommendation

From May 16 to May 18, MTG conducted a comprehensive evaluation based on the agreed scoring model and detailed site data. The evaluation covered:

• Total occupancy cost — rent, management fees, rent-free periods
• Facility functionality — space utilization efficiency and operational fit
• Readiness timeline — how quickly the client could move in and start production
• Future expansion potential — room to grow as demand increases
• Workforce impact — how location would affect retention of existing Shanghai staff

A consolidated evaluation and recommendation report was delivered to the client on May 18.

Results

The project was completed in just over three weeks — from initial sourcing through on-site validation to final decision support. Key outcomes:

• Cost savings exceeding $100,000 through optimized site selection and lease negotiation
• Production timeline secured — the selected facility allows the client to begin production before year-end
• 20 sites evaluated, 8 shortlisted, 1 recommended — with a structured, data-driven evaluation process the client can reference for future decisions

While the compressed timeline limited the ability to fully optimize layout efficiency across all options, this remains an area for future improvement as the client moves into facility setup.

中文版本

中国区选址项目：三周内找到工厂并节省超10万美元

本月现场报告来自一个当前客户项目。为保护客户机密，部分细节已做适当调整。

客户背景

客户是一家总部位于美国的企业，主要为全球领先的工程车辆及卡车制造商提供外协制造服务，专注于车用系统及相关零部件的生产。客户目前在中国上海设有一处约800平方米的小型生产基地，以装配为主，年产量约1,000台，主要服务其客户在中国的生产工厂。

项目挑战

随着中国市场需求增长，客户计划在中国新建一条生产线，用于本地化生产同类产品并直接面向中国市场销售，以提升本地化服务能力与市场响应速度。鉴于客户主要合作方工厂位于江苏省无锡市，新工厂需选址于长三角区域。

客户委托MTG在上海及周边区域寻找合适的工业厂房。项目时间极其紧迫：1-2周内交付选址方案。交付要求包括上海区域至少3处候选厂房，周边区域至少2处备选。客户对总租赁成本及装修费用有明确预期，优先考虑已具备装修条件、可快速入驻的厂房。目标规格：约4,500平方米，层高5至7米。

第一周：厂房资源收集

项目于4月27日启动。至五一假期前后，MTG团队已收集约20处潜在厂房资源——上海13处，外围区域7处（涵盖苏州、无锡、昆山及嘉善）。

经基于租金水平、物业管理费及免租期等核心商业条件的初步筛选，最终确定16处进入实地考察阶段。

第二周：实地考察与评估

5月6日至9日，MTG对16处厂房完成全部实地考察。基于考察结果，筛选出8处供客户重点考察——上海7处，浙江嘉善1处。上海区域以多层厂房为主，仅1处为单层结构。

5月12日至15日，MTG陪同客户进行现场考察，并协助建立结构化评估模型，明确各决策维度的权重，对候选厂房进行量化评分。

第三周：综合评估与最终推荐

5月16日至18日，MTG基于双方确认的评分模型及详细厂房数据，从多个关键维度开展综合评估：

• 总入驻成本——租金、物业费、免租期
• 厂房功能匹配——空间利用效率与运营适配性
• 入驻时间——客户可多快入驻并启动生产
• 未来扩展潜力——随需求增长的扩容空间
• 人员影响——选址对现有上海员工留存的影响

综合评估与选址建议报告于5月18日交付客户。

项目成果

整个项目从资源收集到最终决策支持，仅用三周多时间完成。核心成果：

• 节省成本超过10万美元——通过优化选址及租赁谈判实现
• 生产时间线得到保障——所选厂房可确保客户在年底前投产
• 20处厂房评估，8处入围，1处最终推荐——建立了结构化、数据驱动的评估流程，可供客户未来决策参考

由于项目周期紧凑，在厂房布局优化及空间利用效率方面的深入分析存在一定局限，这也是后续可持续优化的方向。