Why is facility location an important production decision?

"A big decision that managers must make early in production and operations planning is where to put the facility, be it a factory or a service office. The facility’s location affects operating and shipping costs and, ultimately, the price of the product or service and the company’s ability to compete. Mistakes made at this stage can be expensive, because moving a factory or service facility once production begins is difficult and costly. Firms must weigh a number of factors to make the right decision. Facing stiff competition from rival automobile companies and sagging demand among German consumers, Germany’s BMW (Bavarian Motor Works) opened a factory in Spartansburg, South Carolina. Opened in 1994, the U.S. plant recently produced it four millionth vehicle and now employs 9,000 employees in its six million square foot plant. What factors determine where auto companies locate their operations?"