Manufacturing site selection secures $5.6 million in incentives for cheese producer
State and local collaboration helped make a $40 million specialty cheese facility possible, closing funding gaps and positioning the producer for future growth.
Client background
A $200 million producer of specialty and artisan cheeses and premium fresh dairy products sought to expand operations with the development of a state-of-the-art cheese manufacturing plant. The planned facility was designed to be 77,000 square feet and represent a $40 million capital investment. As a family-owned company with a growing national footprint, leadership aimed to increase production capacity and support continued demand for its specialty products.
Business challenge
The company faced a $5.6 million financial gap due to start-up and training costs associated with the project. Bridging this gap was critical to moving forward with the investment and securing the resources needed to bring the plant online.
To ensure success, the company needed to select a plant location that provided the lowest overall operating costs. That required a thoughtful manufacturing site selection process that weighed infrastructure, logistics, tax climate and the availability of financial incentives. Without a competitive incentive package, the project’s viability would be at risk.
Baker Tilly approach
Baker Tilly assisted the company evaluate financial and operational considerations of three potential 20-acre sites across two states. The focus was on determining how state and local governments, as well as utilities, could help close the funding gap and reduce ongoing costs. Key steps included:
- Assessing the availability of public-sector assistance and incentive programs at each location.
- Comparing state tax climates to identify environments that encouraged business investment and minimized compliance burdens.
- Negotiating directly with municipalities and state agencies to secure the most competitive incentive package.
- Coordinating with local utilities to explore additional cost-saving opportunities, including reduced electricity rates.
Through this structured manufacturing site selection process, Baker Tilly ensured that the client had a complete financial picture of each option before making a final decision.
Business impact
With Baker Tilly’s guidance, the company selected a site that provided a comprehensive package of state and local financial incentives. These commitments fully closed the $5.6 million funding gap, making the $40 million project feasible.
In addition, the company secured reduced utility rates, providing long-term operational savings that will support the plant’s success well beyond the initial development phase. By addressing both upfront and ongoing costs, Baker Tilly helped the client position the project for sustainable growth.
Conclusion
For companies in the food and beverage sector, major capital investments require more than strong business planning. A comprehensive manufacturing site selection strategy that evaluates financial incentives, operating costs and long-term tax impacts can make the difference between a stalled project and a successful launch. By working with Baker Tilly, this specialty cheese producer not only bridged a multimillion-dollar funding gap but also established a foundation for efficient operations in a competitive industry.
