Tees Global Investigates... How to Find the Right Location for Business Expansion

Key Consideration and Case Study: THREE60 Energy's Recent Move to Teesside

Strategic Expansion: How to Find the Right Location

Expanding a business into a new location is a strategic move that requires careful planning and a deep understanding of market conditions, resource availability, and business objectives.

Tees Global's Tracey Watson sat down with Bryan Bunn, an experienced engineer and business leader, to discuss key considerations for business expansion. Using THREE60 Energy's recent successful move to Teesside as a case study, this article explores essential factors businesses must evaluate when selecting a new location and how to avoid common pitfalls.

Expert insights from Bryan Bunn

Background and Industry Experience

Bryan Bunn, a proud Teessider, has spent his entire career in engineering, from starting as an apprentice plumber/pipefitter at ICI to founding and leading the Nortech Group employing more than 90 staff.

His experience spans multiple industries, including chemical, petrochemical, and energy sectors. Currently, Bryan serves as an independent business development consultant for businesses, including THREE60 Energy, supporting their strategic expansion efforts.

Key Factors when Selecting a New Business Location

1) Defining Business Objectives

Before choosing a location, businesses must have clear objectives. Bryan emphasises the importance of answering some key strategic questions:

• Are we following existing clients, or are we seeking new ones?

• What is the size and potential of the target region?

• Does our expertise align with local industry needs?

• What is the regional resource and talent availability?

• Who are the competitors, and what is their market positioning?

• What does future industry investment look like in the target region?

2) Understanding Regional Dynamics

Regardless of the industry, these factors play a universal role in location selection. However, businesses must tailor their approach based on industry-specific trends, supply chain dependencies, and talent pool considerations.

3) Common Mistakes to Avoid

Businesses often make missteps when choosing a new location, such as:

• Selecting a location for the wrong reasons, such as prestige rather than strategic fit.

• Lacking a clear, data-driven business strategy to support the expansion.

• Failing to conduct comprehensive market research and competitive analysis.

THREE60 Energy’s Expansion Strategy

THREE60 Energy is a leading asset lifecycle and engineering technology that deliver sustainable solutions, working closely with its clients across a wide range of market sectors and geographic regions. To achieve this, THREE60 has 6 integrated service lines with Bryan’s focus area being the Engineering, Procurement, Construction and Commissioning (EPCC) service line or division. Whilst the EPCC division head office is in Aberdeen, Scotland where it maximises its upstream Oil & Gas experience to deliver agile, responsive and fit for purpose solutions. THREE60 is on a strategic growth and diversification journey to take existing transferable Engineering skills and experience into the EPCC multi sector downstream marketplace.

This strategy has already experienced several successes with downstream / onshore clients across several locations in Scotland and internationally, and has resulted in the opening of a regional office in Glasgow to support the Grangemouth and central belt area.

As part of its growth and diversification strategy, the company sought to establish a presence in Northern England to leverage existing transferable engineering expertise and tap into new client opportunities in the downstream sector and developing energy sectors. Their successful expansion to Teesside offers valuable lessons for other businesses embarking on a similar journey.

THREE60 Energy’s Expansion to Teesside

Identifying Challenges and Opportunities

THREE60 Energy initially identified Northern England as the next growth region. The challenge was narrowing it down further to find the most suitable sub-region.

By conducting a thorough assessment of various locations, including Northumberland, Newcastle, Sunderland, Durham, and Teesside, they determined that Teesside offered the best balance of sector fit, client exposure, new opportunities, and talent availability.

Locating Shortlisting Process

Once Teesside was selected, the team evaluated office space requirements—determining factors such as square footage, workforce size, and the preference for fixed or flexible office solutions.

Bryan reviewed approximately 40 locations before narrowing it down to a shortlist of 12 options. The final decision was made after a site visit and scoring process, leading to the selection of BIZ HUB in Belasis Park, Billingham.

Timeframe for Location Sourcing

The location selection process varies depending on company size, industry, and market conditions. A well-structured approach, as demonstrated by THREE60 Energy, ensures efficiency and thoroughness.

Ensuring a Smooth Expansion – KEY TAKEAWAYS

Bryan offers several key takeaways for businesses planning an expansion:

• Take your time: Rushing the process can lead to costly mistakes.

• Pay attention to details: Every aspect, from lease terms to infrastructure, matters.

• Appoint a single point of contact: A dedicated individual should oversee the process to ensure consistency and accountability.

• Align internal resources: Ensure internal teams are prepared to support the transition.

Conclusion

Selecting a new location for business expansion is a multifaceted process that requires strategic planning, research, and due diligence. THREE60 Energy’s successful expansion to Teesside demonstrates the importance of aligning business objectives with market opportunities, conducting comprehensive evaluations, and engaging key stakeholders. By following these insights, businesses can make informed decisions that drive long-term success in new markets.