Should You Expand, Remodel or Build Your Industrial Facility?

Every business aims to grow and expand. When a business outgrows its industrial space, owners may ask, “Should I build from scratch or expand?” The choice to extend, remodel or build a new facility deserves careful consideration. Each option has unique advantages and disadvantages. Decision-makers should weigh the budget, timelines and layout to choose the best option for the company’s needs.

Let’s examine the differences between industrial facility expansion, remodeling and construction. We’ll weigh up the pros and cons of each option to help you make an informed choice. 

The Difference Between Expanding, Remodeling and Building

Before diving into each of these methods, we first need to differentiate between them:

• Expansion: This process involves increasing the size of, or adding structures to, an existing building. Added elements may include rooms, floors or sections. 
• Remodel: Remodeling alters an existing structure from its original construction. It may involve increasing square footage, removing walls or installing HVAC systems. 
• New build: A new build involves designing and building a structure from scratch. 

There are a few critical ways that expansion, remodeling and new construction differ:

• Cost: Building a new structure typically costs more than renovating or expanding. 
• Complexity: This depends on the project requirements. In general, new builds are more complex. They involve architectural drawings, plumbing and electrical installation, permits and more. 
• Timelines: In most cases, remodeling or expansion takes less time than building a new facility. 
• Design and layout: There is more freedom to design and lay out a new building to suit business needs. The existing structure may limit expansions or remodel design flexibility.

Industrial Facility Expansion

When deciding whether you should expand your production facility, remember that leveraging off an existing facility increases capacity at a lower cost than new construction. It allows operational growth, but this depends on the available space.

Pros of Expansion

Expanding an existing building has the following advantages:

1. Less disruption: There is less chance of disturbance to normal operations. It avoids relocating staff unless the construction occurs within the main workspace. 
2. Retain location: If your business is in a prime location, you keep the address. Expanding is ideal when you own the surrounding land.
3. Cost savings: Building onto an existing structure is often more cost-effective than new construction. 
4. Shorter timeline: Adding to an existing structure is usually quicker than new construction. 

Cons of Expansion

There are disadvantages to expansion, such as:

1. Limited space: Expansion requires available surrounding space. Facilities located in crowded urban areas may not have this luxury. 
2. Design restrictions: There is less freedom with expansion. Design is reliant on the existing structure and space. 
3. Temporary disruption: Businesses should expect some disturbance that may affect revenue and operations. 
4. Expansion challenges: Vertical expansion requires structural considerations such as seismic behavior and weight-bearing. Horizontal expansion contributes to increased infrastructure costs. Subterranean expansion, while less common, limits natural light and requires moisture control measures.  

Industrial Facility Remodel

Remodeling a facility is the most moderate choice of the three options. The size and scope of a remodeling project depend on requirements.

Pros of Remodeling

Industrial or food processing building renovations come with certain benefits:

1. Budget-friendly: Remodeling is often more cost-effective than expansion or a new build. Using the current structure reduces labor and material costs. 
2. Keep location: Renovating your current facility allows you to keep the premises. Retaining your existing business address saves money and is more convenient for customers. 
3. Less complicated: Renovating is less complex than extending or erecting a new building. It may not require the installation of plumbing or HVAC systems.
4. Quicker timeline: Remodels involve fewer materials, less labor and less construction. Skipping planning and permitting involved in new construction reduces the timeline.  

Cons of Remodeling

Although it may seem like the most straightforward option, remodeling has disadvantages. These include:

1. Limited flexibility: Working with an existing structure restricts design options. The current layout of the building dictates the scope of alterations. Less space limits the opportunity for future business growth.
2. Unforeseen costs: Hidden expenses can creep into remodeling projects. Older buildings may have structural issues or outdated plumbing systems. Resolving unexpected issues comes with additional fees. 
3. Compliance issues: Renovating old structures might involve complying with safety and regulatory standards. These processes can be expensive and time-consuming. 
4. Operational disturbance: Construction can impact business operations, workflow and customer service. Remodeling happens in the existing space, disrupting regular service.  

New Industrial Facility Construction

Building a new industrial facility gives you total control. However, it is the most time-consuming, labor-intensive and cost-intensive method. 

Pros of New Construction

There are many upsides to constructing an industrial building from the ground up. These include:

1. Complete control: A new building gives you full control over the space. You can customize every aspect of the building, from its layout to its features.  
2. Green efficiency: New buildings use less energy than older structures. Implementing sustainable lighting and plumbing systems lowers utility bills. You can ensure your new building has a lower carbon footprint. Utilizing sustainably sourced materials is another way to increase the building’s environmental efficiency.
3. Brand reputation: A new build is an ideal way to reinforce brand reputation. Using the architecture and design as an extension of your brand strengthens awareness. 
4. Continued operations: Fabricating a new building means operations can continue uninterrupted. Renting one space while building another may be costly, but there is no operational downtime or profit loss.

Cons of New Construction

While new builds offer unparalleled flexibility and design opportunities, there are a few drawbacks to note:

1. Highest cost: Expenses include land acquisition, architectural services and permitting. Constructing from scratch is the most expensive growth option.  
2. Longer timeline: New builds involve phases, including design, planning, permitting and construction. Unexpected problems during the construction phase may extend the timeline.  
3. Permits and zoning: Meeting building regulations and obtaining zoning permits can be complex. Certain states or counties may have specific protocols. San Bernardino County, for example, requires industrial buildings to meet minimum permit requirements. 
4. Maximum effort: Constructing a new building requires meticulous planning of each detail. It is not recommended for those who need a quick or simple solution. 

Which Should You Choose?

There is no clear-cut answer to this question. Each option suits specific needs. Weigh up the pros and cons to decide which best accommodates your facility’s requirements. Factors that should influence your decision include budget, timeline and objectives. Consider the following:

• Expansion increases facility capacity by leveraging the existing premises. It suits properties with additional surrounding space. 
• Remodeling is best when you don’t need much extra square footage. It can be more cost-effective when budget is a concern. 
• Constructing a facility is a good choice for businesses that need more space. It allows more control over design and layout to meet company needs. 

A reputable industrial contractor can recommend the right path for your company’s objectives. Unlike a general contractor, an industrial contractor specializes in handling industrial-specific projects. They manage design, construction, renovation and equipment installation. 

Trust Foss General Contractors for Industrial Expansions, Renovations or New Builds 

If you want to expand, remodel or build your industrial facility, Foss General Contractors can help. We focus on serving our California and Nevada customers with integrity and transparency. Our experienced team handles all construction phases, from design to final build. Our industrial services include construction, contracting, piping, plumbing and millwright work. 

Discover fast, reliable and efficient service! Contact us by phone or email for a proposal or on-site walkthrough.