Essay about Location Strategy: Weyerhaeuser Company

Essay about Location Strategy: Weyerhaeuser Company

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Weyerhaeuser Company is a national provider of forest products, primarily involved in growing and harvesting trees, creating a range of lumber products and building homes and operates in ten different countries, catering to a global cliental (New York Times). They are beginning to consider entering the roof truss market, the made-to-order frames that holds up roofs. These trusses have the capability of saving manufacturing companies up to twenty five percent of construction time and labor costs (Midwest Manufacturing). In order to compete with small producers of these trusses, Weyerhaeuser must weigh a multitude of factors in order to strategically decide where they should locate their manufacturing plants in order to become the dominant provider of roof trusses in the United States.
The lengthy, in depth process of deciding a suitable location for manufacturing facilities can prove to be tricky. It is important to note that the type of facility is a major determinant of location, which suggests that factors associated with deciding on a location for a service facility or warehouse are not applicable when dealing with a manufacturing plant (Russell 297). Weyerhaeuser must exercise both caution and care when surveying the advantages and disadvantages of various geographical locations as this site can potentially determine the success of their business venture into a new market. Location strategy is one that needs to be focused on the future – long-term profitability and survival (Russell 297).
Historically, manufacturing facilities were located in the Midwest and then shifted to the sunbelt region due to the warmer climate and cheaper, non-unionized labor. Eventually the industry stretched to the north central region (Russell 2...

... middle of paper ...

...ghts on real estate that fits their budget and allows direct competition with other roof truss manufacturers. It’s all about location, location, location.

Works Cited

Midwest Manufacturing. Web. 23 Jan. 2012.

Russell, Roberta S., and Bernard W. Taylor. "Chapter 7: Capacity and Facilities Design." Operations
Management: Creating Value Along the Supply Chain. 7th ed. John Wiley & Sons, 2011. 257-96.

Suresh, N. "Chapter 2: Plant Location and Layout." Production and Operations Management. By S. Anil
Kumar. 2nd ed. New Delhi: New Age International (P), 2008. 22-64. Print.

"Weyerhaeuser Company." The New York Times. Web. 23 Jan. 2012.

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