Strategy December 31, 2011
special report | Warehousing
Summary: Rising fuel costs and a sputtering economy means warehouse site selection is essential for companies to save money. Important factors are location, shipping costs, right-to-work states and community and state incentives.
Key Quotes:
With fuel and shipping rates projected to rise significantly in 2012 and beyond, comparative costs in areas like labor, property taxes, energy, and real estate are under the site selection microscope like never before.
For many [companies] , a less-than-optimum operating cost structure for their warehouses can compromise their competitive position for years.
These costs are expected to rise throughout the coming year. Despite continued advancements in warehouse automation technologies, overall operating costs for distribution warehousing are expected to increase by 14 to 16 percent in 2012 due to a rise in diesel fuel costs, above-average utility rate increases, and recovering real estate markets in most locales.
Container shipments are projected to increase tremendously at U.S. East Coast ports, creating inland warehouse opportunities (not unlike California's Inland Empire) for communities situated within a few hours' drive by truck from deepwater ports in Miami and Jacksonville, Fla.; Savannah, Ga.; Charleston, S.C.; Norfolk, Va.; Baltimore, Md.; Wilmington, Del.; Newark/Elizabeth, N.J.; and Boston, Mass.
To read the full article see The right site, at the right price.
No comments:
Post a Comment