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Saturday, September 20, 2008

Dallas & Fort Worth Get Ahead as Warehousing Hub Due to Fuel Costs - Reason Location + Rail

Location of the United StatesImage via Wikipedia

Anyone that has done business in logistics or warehousing in the Dallas - Fort Worth area will have no doubts that the area is taking off in logistics, gaining respect and prominence as one of the primary areas to do business in the United States.

My first experience there happened several years ago, when Motorola shut down their facility in Harvard, IL (60 miles west of Chicago in cow country formerly the home of the CEO Chris Galvin) moved their cellular operations to Fort Worth.

As much as I like Illinois (my own home state) back then Ft worth was cheaper for lots of reasons but mostly labor.

These days they have a new advantage in cost, high oil prices and the proximity to shipping freight via rail.

North Texas' rail networks are a big factor in competition for warehousing, according to the study written by the University of North Texas' Dr. Terrance Pohlen.

"The strategic location of the area has attracted many businesses seeking short transit times from a single point to the U.S. market," Dr. Pohlen said.

"Intermodal freight from Asia can reach the metroplex within three weeks as opposed to four weeks to arrive in Houston or the East Coast.

"Trucks departing Dallas-Fort Worth can reach over 75 percent of the U.S. population within a two-day drive time."


Whether you are shipping cell phones, radios, car parts or weight loss pills, freight is cheaper through this new Logistics Meca. And that growth becomes a self fulfilling prophecy as the local workforce develops a rapidly growing proficiency in working in logistics.

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