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Business & Plant Feasibility Studies

Research-led feasibility studies for manufacturing investments, from market demand and plant economics to site selection and investment risk.

Before capital is committed to a new plant or an expansion, Credence Research tests the case with evidence: where to invest, what capacity to build, what it could cost, which risks matter and whether the commercial case supports going ahead. Studies draw on a catalog of more than 22,000 market reports across 20+ industries, primary interviews and transparent models.

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What a feasibility study answers

Whether a specific project, a product at a capacity in a location, can sell its output, at what cost, with what return and with which risks. It is narrower and deeper than a market report, and it ends in a recommendation.

Manufacturing decisions these studies support

Each of these decisions commits capital for years, which is why the evidence behind them matters.

Building a new plant

Test demand, cost and returns before choosing size and location.

Expanding capacity

Check that the market can absorb more output at viable prices.

Relocating production

Compare the current site with lower-cost or closer-to-customer options.

Investing in or acquiring a plant

Review the market, cost position and plan behind the investment.

Modernizing an existing site

Weigh the economics of upgrades against new capacity.

How the evidence comes together

Each study tests four lines of evidence and ends in one recommendation.

Scroll sideways to see the whole figure.

Demand and capacityCan the output be sold?Cost and unit economicsWhat does each unit cost?Location and rulesWhere, and under which rules?Risk and scenariosWhat breaks the case?Decision memoGo, change the projector stop
Illustrative. The weight of each line depends on the project. Shapes only, not client or market data.

Six areas a feasibility study covers

Studies are scoped from these areas. Linked services have their own pages; the others are part of a combined study.

01

Market and commercial feasibility

Whether the output can be sold, to whom and at what price.

02

Financial and investment feasibility

What the project costs and returns, and how sure those numbers are.

03

Technical and manufacturing feasibility

Which technology route and inputs suit the plant.

  • Technology route screening
  • Equipment and technology screening
  • Raw material and utility feasibility
  • Plant capacity and expansion feasibility

04

Location and regulatory feasibility

Where to build, and the rules that apply there.

05

Operational and supply chain feasibility

Whether the plant can be supplied, staffed and run reliably.

  • Operational risk analysis
  • Supply chain and supplier feasibility
  • Workforce and operational readiness
  • Brownfield modernization feasibility

06

Project planning and investment support

Studies that join the areas above for one decision.

What public data can show, and what needs research

Public data answers part of every feasibility question. The rest needs targeted research, and the study shows which is which.

Where desk research is usually enough and where primary research is needed
TopicPublic data showsStill uncertainHow it is tested
DemandCategory size and growthDemand a new plant can reachSegment modeling and buyer interviews
CapacityAnnounced plants and expansionsWhich projects will be built, and whenProject status checks
CostsReported costs of other plantsCosts for this capacity, location and yearBenchmarking with stated basis and range
LocationTariffs, wages, incentivesTheir effect on this projectLocation cost modeling

Every assumption is logged with its source, date and range, so it can be checked and updated.

Illustrative example

This example is illustrative. It shows how a study could be designed and does not describe a client project.

A 2 GWh lithium-ion cell plant in India

Illustrative example
Business question
Should a company build a 2 GWh lithium-ion cell plant in India, and on what terms?
What the study covers
Competitor capacity and planned plants, cell chemistry choice, raw material sourcing, power cost, import competition, offtake potential, CAPEX and OPEX, and returns under several scenarios.
Output
A decision memo on when the commercial case works, which assumptions carry the most risk and which questions need engineering validation.

What you receive

Outputs depend on the study level and are agreed at scoping.

  • Research report

    Findings on demand, competition, cost and location, with charts and sources.

    Use it to understand the case.

  • Editable Excel model

    Demand, cost and financial model with scenarios.

    Use it to test your own assumptions.

  • Assumption register

    Every input with its source, date and range.

    Use it to answer investor questions.

  • Decision memo

    Whether the case holds, the riskiest assumptions and the next steps.

    Use it to brief the board.

Choose the depth of study

Most projects start with a pre-feasibility study and move to a full study when the idea passes the screen.

What each study level includes
DeliverablePre-feasibilityFull feasibility
Market demand analysisSummaryDetailed
Competitor capacity mappingPreliminaryDetailed
CAPEX analysisHigh-level rangeItemized benchmark
OPEX and unit economicsPreliminaryFull model
Technology comparisonScreeningEvaluation
Site selectionDesktop reviewComparative analysis
Financial modelSimple payback screenIntegrated Excel model
Sensitivity and risk analysisKey assumptionsComprehensive
Implementation roadmapHigh levelPhased

Engineering design, drawings and vendor quotations are not part of either level.

Try a quick payback estimate

Change the inputs to see how price, cost and utilization move a project's simple payback. The numbers are illustrative defaults, not a benchmark.

USD

USD 50.00 million

units/yr
%
USD/unit
USD/unit
USD/yr

USD 1.50 million

Annual revenue
USD 7.50 million
Operating contribution
USD 1.88 million
Simple payback
26.7 years
Break-even utilization
33.3%
Simple payback by capacity utilization (years, capped at 30)
010203040%50%60%70%80%90%100%

Capacity utilization. The red bar is closest to your input; grey bars do not pay back within 30 years.

Illustrative estimate only. It excludes taxes, financing, depreciation, working capital and ramp-up, and it is not a discounted cash flow valuation. A feasibility study replaces each input with sourced, dated assumptions.

How a feasibility study works

  1. 1

    ScopingThe decision, product, capacity, locations and level of study are agreed, along with what is in and out of scope.

  2. 2

    Primary and secondary researchAnalysts combine company filings, trade and tariff data, capacity announcements and price series with interviews of producers, buyers, suppliers and industry experts.

  3. 3

    ValidationKey figures are cross-checked against at least two independent sources, and every assumption is logged with its source and date.

  4. 4

    ModelingDemand, cost and financial models are built in Excel with base, upside and downside cases, so each assumption can be changed and traced.

  5. 5

    Analyst review and decision memoA senior analyst reviews the findings, and the study closes with a memo on whether the case holds, the riskiest assumptions and the next steps.

Frequently asked questions

Request a feasibility study proposal

Describe the product, location and capacity you are considering, and the decision the study must support. A short brief is enough to start.

What happens next

An analyst reviews the brief and replies within one business day with scoping questions. A proposal follows with the study scope, deliverables and timeline.

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