Logistics activity in the southeastern United States is heating up—and not just in the traditional hot spot of Atlanta. Here are three more rising stars.
Susan Lacefield has been working for supply chain publications since 1999. Before joining DC VELOCITY, she was an associate editor for Supply Chain Management Review and wrote for Logistics Management magazine. She holds a master's degree in English.
When it comes to regions in the United States that offer growing logistics opportunities, the Southeast sits at the top of the list, says Richard Thompson, managing director at industrial real estate firm Jones Lang Lasalle Inc.
The reason for the region's appeal is no mystery, says Thompson. "First, it's an ideal spot in terms of freight costs," he says. The Southeast has an attractive population density, with 45 percent of the U.S. population living in the region. It also has a strong supply chain infrastructure with robust rail and highway connectivity and access to quality seaports like Miami; Savannah, Ga.; Charleston, S.C.; and Jacksonville, Fla., Thompson says.
Second, labor costs are relatively low because the Southeast is generally a nonunion region. And unlike other logistics hotspots, real estate in the Southeast is relatively abundant, according to Thompson.
"If you're looking for a 1,000-acre industrial site, you're not going to find that in [California's] Inland Empire, and you're not going to find that in Chicago or New York," says Thompson. "But you are going to find that in Tennessee, Alabama, Georgia, and other southeastern states."
In addition, state governments have worked to attract business by offering generous incentives to either start a company or relocate an existing enterprise.
The Atlanta metropolitan area has long been the region's main hub of logistics activity, and despite economic setbacks in the past decade due to downturns in the IT, telecom, and housing sectors, Atlanta's best days are still ahead of it, according to Thompson.
But there are other locations working hard to get on logistics professionals' radar screens. In this article, we highlight three: Central Florida, the Piedmont-Triad region of North Carolina, and Savannah.
CENTRAL FLORIDA
Not much gets made in Florida. The state is heavily tilted toward consumption because of its large retiree population. As a result, most of the goods moving through the state flow south, not north.
But that pronounced imbalance might reverse itself come 2015, when the widened and deepened Panama Canal opens. Two Florida ports, the Port of Miami and Port Manatee near Tampa, are the closest U.S. ports to the canal. Miami, in particular, is making a big push for cargo, vying for what it expects to be a larger share of waterborne commerce heading through the expanded canal to the East Coast.
Additionally, many companies are looking to South and Central America for growth opportunities, says John H. Boyd of the site selection consulting firm Boyd Co. Inc. Florida is a logical location for basing those trade operations.
Both of these trends are working to make Florida a more attractive location for logistics and distribution facilities—especially when combined with the fact that the state is, and will likely remain, a potent consuming force with a population of 19 million people.
Companies that are considering Florida for a distribution facility, however, may find themselves shying away from the coasts. Land prices around the ports can be steep, and coastal areas are at risk of flooding in the hurricane-prone state, says Boyd.
The central Florida communities of Orlando, Lakeland, and Ocala—to name a few—are more protected from these weather concerns. Central Florida also has plenty of land available at favorable prices as the local real estate market is still recovering from the downturn, according to Dave King, head of real estate operations for the real estate company STAG Industrial.
Many large companies are taking advantage of those opportunities. Grocery chain Publix, for example, recently cut the ribbon on a 1 million-square-foot distribution facility in Orlando. Furniture retailer Rooms To Go has opened a 2 million-square-foot facility in nearby Lakeland.
In addition to abundant property and a strong infrastructure, Central Florida also sets itself apart by means of a very business-friendly tax structure, says Sean Malott, manager of business development for the economic development organization Enterprise Florida. For example, Florida does not have a state income tax, and it doesn't impose property taxes on business inventories or goods-in-transit (or goods acquired and stored in a facility before being shipped elsewhere) for up to 180 days from the time of being acquired.
PIEDMONT-TRIAD, N.C.
The Piedmont-Triad region of North Carolina may not be a major metropolitan area, but it has an interstate highway system that most major cities would envy. The 12-county area, which includes Greensboro, High Point, and Winston-Salem, boasts five interstates: 1-73, 1-74, I-77, I-85, and I-40.
"The Triad area has one of the densest concentrations of interstates in the United States," says Charles Edwards, director of the North Carolina Center of Global Logistics. "There's Chicago, St. Louis, and a few other very large major metropolitan areas that have more interstate, but we don't have the congestion that those locations have."
Old Dominion Freight Line Inc., considered by many to be among the best-run trucking companies in the business, calls the region home. FedEx Corp.'s mid-Atlantic hub is also based in the Triad, and one of the company's largest ground hubs is located in Kernersville, N.C.
The region is served by CSX Corp. and by Norfolk Southern Corp., which has an intermodal terminal in Greensboro and a bulk transfer terminal in Winston-Salem. Companies that operate distribution facilities in the region include Ralph Lauren, Harris Teeter, Ashley Furniture, and the aviation firms Honda Aero and Timco Aviation Services.
Perhaps unsurprisingly, between 50,000 and 60,000 of the region's residents work in transportation and logistics, according to data from the local chapter of the World Trade Association. (The U.S. Census Bureau, which defines logistics jobs more narrowly, puts the number at 27,000.) "That makes the Triad one of the larger [logistics] centers in the world," says Edwards. "There are actually more people engaged in transportation and logistics in the Triad than in the Rotterdam area. Of course, we're a lot of smaller than Memphis or New Jersey or L.A./Long Beach, but we are not trying to be those areas."
SAVANNAH, GA.
The basis for Savannah's status as a hotbed of logistics activity is, in the words of Brandt Herndon of the Savannah Economic Development Authority, not man-made but "god-given." The Port of Savannah is the westernmost port on the Eastern Seaboard and is located within two days' drive of 80 percent of the nation's population.
Savannah and the state of Georgia, however, have done a lot of work enhancing that god-given asset. The Port of Savannah is the country's fastest-growing port as well as the fourth largest container port, and its Garden City Terminal is the largest single-terminal operation in the United States.
Savannah's strengths include its transportation connections and land availability. "Because the port is located upriver, inland from the Savannah historic district, the port was able to develop great highway and rail connectivity, and the land available is second to none," says Curtis Foltz, executive director of the Georgia Ports Authority.
Savannah and the port can be accessed via both I-95 and I-16 as well as by the Norfolk Southern and CSX. The Mason Intermodal Container Facility, which is in the process of being expanded, is actually located on terminal. "Which is unusual for a port," says Herndon.
According to Herndon, there are more than 100 warehouses and distribution centers located near Savannah, including facilities run by such companies as Home Depot, Lowe's, Ikea, and Dollar Tree. In the 1990s as the port grew, the community became concerned about a possible shortage of warehouse and distribution space. That led to the construction of the 1,600-acre Crossroads Distribution Center a short distance from the Garden City Terminal.
Other large-scale industrial distribution facilities have followed. For example, there's the RiverPort Business Park, which contains 1,400 acres of warehousing, distribution, and light industrial space located six miles from the port. There's also the 904-acre Belfast Commerce Centre, which is located 20 miles from Savannah and has direct rail connections to the port.
But when it finally comes down to persuading companies to locate in Savannah, Herndon says the tipping point is often the city's quality of life. As a historic site with 12 million visitors a year, Savannah is able to support restaurants and cultural events that many cities its size can't. "When they're being shown the area, many prospective companies ask us to give them 15 minutes to an hour to see the downtown area," he says. "They love the history and the oak trees; it's an easy sell."
For more information ...
Want to learn more about the logistics hot spots mentioned in this article? Here's where to find more information:
Central Florida
Enterprise Florida Inc.: Enterprise Florida, a public-private partnership formed to promote the state's economic development, devotes a whole section of its website to logistics and distribution. The site includes extensive information about the state's logistics and distribution opportunities, infrastructure, and employment and wage picture.
Lakeland Economic Development Council: This organization focuses on the area around Lakeland, Fla. Its website contains information about available warehouse space, major employers, and area demographics.
Piedmont Triad, N.C.
Greensboro Economic Development Alliance: This organization is focused on the city of Greensboro and surrounding Guilford County. It offers information about the area's infrastructure, supply chain and logistics employers, and training programs.
Piedmont Triad Partnership: This private nonprofit economic development organization focuses on the Piedmont Triad region of North Carolina. Its website offers information about the area's logistics infrastructure and wages, as well as the state's training programs.
Savannah, Ga.
Georgia Ports Authority: The GPA, which serves as the administrative agency for the ports of Savannah and Brunswick, includes detailed information on its website about the Port of Savannah's two terminals, Garden City Terminal and Ocean Terminal. The site also includes highway mileage charts, interstate and rail data, and operating information.
Savannah Economic Development Authority: This organization provides site selection services for the Savannah area. Its website contains extensive information and resources, including a property database and data on the area's transportation infrastructure, taxes and incentives, and major distribution employers.
The Port of Oakland has been awarded $50 million from the U.S. Department of Transportation’s Maritime Administration (MARAD) to modernize wharves and terminal infrastructure at its Outer Harbor facility, the port said today.
Those upgrades would enable the Outer Harbor to accommodate Ultra Large Container Vessels (ULCVs), which are now a regular part of the shipping fleet calling on West Coast ports. Each of these ships has a handling capacity of up to 24,000 TEUs (20-foot containers) but are currently restricted at portions of Oakland’s Outer Harbor by aging wharves which were originally designed for smaller ships.
According to the port, those changes will let it handle newer, larger vessels, which are more efficient, cost effective, and environmentally cleaner to operate than older ships. Specific investments for the project will include: wharf strengthening, structural repairs, replacing container crane rails, adding support piles, strengthening support beams, and replacing electrical bus bar system to accommodate larger ship-to-shore cranes.
Commercial fleet operators are steadily increasing their use of GPS fleet tracking, in-cab video solutions, and predictive analytics, driven by rising costs, evolving regulations, and competitive pressures, according to an industry report from Verizon Connect.
Those conclusions come from the company’s fifth annual “Fleet Technology Trends Report,” conducted in partnership with Bobit Business Media, and based on responses from 543 fleet management professionals.
The study showed that for five consecutive years, at least four out of five respondents have reported using at least one form of fleet technology, said Atlanta-based Verizon Connect, which provides fleet and mobile workforce management software platforms, embedded OEM hardware, and a connected vehicle device called Hum by Verizon.
The most commonly used of those technologies is GPS fleet tracking, with 69% of fleets across industries reporting its use, the survey showed. Of those users, 72% find it extremely or very beneficial, citing improved efficiency (62%) and a reduction in harsh driving/speeding events (49%).
Respondents also reported a focus on safety, with 57% of respondents citing improved driver safety as a key benefit of GPS fleet tracking. And 68% of users said in-cab video solutions are extremely or very beneficial. Together, those technologies help reduce distracted driving incidents, improve coaching sessions, and help reduce accident and insurance costs, Verizon Connect said.
Looking at the future, fleet management software is evolving to meet emerging challenges, including sustainability and electrification, the company said. "The findings from this year's Fleet Technology Trends Report highlight a strong commitment across industries to embracing fleet technology, with GPS tracking and in-cab video solutions consistently delivering measurable results,” Peter Mitchell, General Manager, Verizon Connect, said in a release. “As fleets face rising costs and increased regulatory pressures, these technologies are proving to be indispensable in helping organizations optimize their operations, reduce expenses, and navigate the path toward a more sustainable future.”
Businesses engaged in international trade face three major supply chain hurdles as they head into 2025: the disruptions caused by Chinese New Year (CNY), the looming threat of potential tariffs on foreign-made products that could be imposed by the incoming Trump Administration, and the unresolved contract negotiations between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX), according to an analysis from trucking and logistics provider Averitt.
Each of those factors could lead to significant shipping delays, production slowdowns, and increased costs, Averitt said.
First, Chinese New Year 2025 begins on January 29, prompting factories across China and other regions to shut down for weeks, typically causing production to halt and freight demand to skyrocket. The ripple effects can range from increased shipping costs to extended lead times, disrupting even the most well-planned operations. To prepare for that event, shippers should place orders early, build inventory buffers, secure freight space in advance, diversify shipping modes, and communicate with logistics providers, Averitt said.
Second, new or increased tariffs on foreign-made goods could drive up the cost of imports, disrupt established supply chains, and create uncertainty in the marketplace. In turn, shippers may face freight rate volatility and capacity constraints as businesses rush to stockpile inventory ahead of tariff deadlines. To navigate these challenges, shippers should prepare advance shipments and inventory stockpiling, diversity sourcing, negotiate supplier agreements, explore domestic production, and leverage financial strategies.
Third, unresolved contract negotiations between the ILA and the USMX will come to a head by January 15, when the current contract expires. Labor action or strikes could cause severe disruptions at East and Gulf Coast ports, triggering widespread delays and bottlenecks across the supply chain. To prepare for the worst, shippers should adopt a similar strategy to the other potential January threats: collaborate early, secure freight, diversify supply chains, and monitor policy changes.
According to Averitt, companies can cushion the impact of all three challenges by deploying a seamless, end-to-end solution covering the entire path from customs clearance to final-mile delivery. That strategy can help businesses to store inventory closer to their customers, mitigate delays, and reduce costs associated with supply chain disruptions. And combined with proactive communication and real-time visibility tools, the approach allows companies to maintain control and keep their supply chains resilient in the face of global uncertainties, Averitt said.
Bloomington, Indiana-based FTR said its Trucking Conditions Index declined in September to -2.47 from -1.39 in August as weakness in the principal freight dynamics – freight rates, utilization, and volume – offset lower fuel costs and slightly less unfavorable financing costs.
Those negative numbers are nothing new—the TCI has been positive only twice – in May and June of this year – since April 2022, but the group’s current forecast still envisions consistently positive readings through at least a two-year forecast horizon.
“Aside from a near-term boost mostly related to falling diesel prices, we have not changed our Trucking Conditions Index forecast significantly in the wake of the election,” Avery Vise, FTR’s vice president of trucking, said in a release. “The outlook continues to be more favorable for carriers than what they have experienced for well over two years. Our analysis indicates gradual but steadily rising capacity utilization leading to stronger freight rates in 2025.”
But FTR said its forecast remains unchanged. “Just like everyone else, we’ll be watching closely to see exactly what trade and other economic policies are implemented and over what time frame. Some freight disruptions are likely due to tariffs and other factors, but it is not yet clear that those actions will do more than shift the timing of activity,” Vise said.
The TCI tracks the changes representing five major conditions in the U.S. truck market: freight volumes, freight rates, fleet capacity, fuel prices, and financing costs. Combined into a single index indicating the industry’s overall health, a positive score represents good, optimistic conditions while a negative score shows the inverse.
Specifically, the new global average robot density has reached a record 162 units per 10,000 employees in 2023, which is more than double the mark of 74 units measured seven years ago.
Broken into geographical regions, the European Union has a robot density of 219 units per 10,000 employees, an increase of 5.2%, with Germany, Sweden, Denmark and Slovenia in the global top ten. Next, North America’s robot density is 197 units per 10,000 employees – up 4.2%. And Asia has a robot density of 182 units per 10,000 persons employed in manufacturing - an increase of 7.6%. The economies of Korea, Singapore, mainland China and Japan are among the top ten most automated countries.
Broken into individual countries, the U.S. ranked in 10th place in 2023, with a robot density of 295 units. Higher up on the list, the top five are:
The Republic of Korea, with 1,012 robot units, showing a 5% increase on average each year since 2018 thanks to its strong electronics and automotive industries.
Singapore had 770 robot units, in part because it is a small country with a very low number of employees in the manufacturing industry, so it can reach a high robot density with a relatively small operational stock.
China took third place in 2023, surpassing Germany and Japan with a mark of 470 robot units as the nation has managed to double its robot density within four years.
Germany ranks fourth with 429 robot units for a 5% CAGR since 2018.
Japan is in fifth place with 419 robot units, showing growth of 7% on average each year from 2018 to 2023.