To Upgrade or Expand? With supply chain challenges and skyrocketing inflation, the idea of expanding or re-locating manufacturing facilities can be daunting as Australian manufacturers navigate through the challenges and opportunities of considering manufacturing upgrades or expansion. Brownfield and Greenfield projects both have their own challenges.
In capital expense terms, the brownfield option is generally the cheaper option, but the site usually relies on compromises. Compromises generally relate to size and scope of works, existing council restrictions (noise, easements) and Services (Electrical, water & Gas). If the compromises are acceptable, in terms of timing - a brownfield site is much faster to develop as generally Council requirements (if reqd) are lower and faster if changing or expanding on existing use.
With greenfield sites, the outside factory layout is generally less of a compromise, so will be well laid out. However the time and cost to complete a greenfield site has increased significantly due to a shortage of materials and labour, and some councils can no longer commit to planning timelines. While greenfield sites allow maximum design flexibility, it’s important to consider minimizing the construction footprint to reduce time and cost.
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