industry news

Southeast U.S. is leader in number of
of Logistics Today

Cleveland, OH - 3/8/2004 - For the third year in a row, Savannah tops the list of U.S. cities that are a magnet for jobs in the logistics industry, followed by Nashville and Atlanta. Overall, the entire southeastern U.S. ranks very high when it comes to having all the right stuff, from roads and rails to ports and airports, according to an annual ranking of the industry by regions.

The ratings, which rank 328 cities nationwide, are based on 10 criteria that are critical to logistics success, according to Logistics Today, a leading trade publication for the industry and the author of this site selector index.

The rankings, published in the March issue of the publication, include the top 50 cities and metropolitan areas in the Southeast, comprised of Alabama, Arkansas, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee and Virginia.

Other cities ranking in the top 10 in the Southeast include: Chattanooga, Macon, Charleston, Memphis, Birmingham, Knoxville and New Orleans.
This year, Nashville moved to number two from 10th place last year, while Atlanta retained its third place ranking.

"Logistics is definitely an economic force in the Southeast, driving growth in services and competition," says Dave Blanchard, Logistics Today editor. "When a region puts a priority on infrastructure, it pays big dividends in terms of attracting businesses and the industries that serve them, such as logistics providers."

The Southeast, like many other parts of the country, has experienced a manufacturing decline as traditional industries have moved production offshore, requiring a shift in thinking about where the new industries and jobs will come from, Blanchard notes.

"The Southeast region appears to be making that shift," says Blanchard. "Savannah, for example, has done an especially good job of attracting large distribution facilities for major retailers, thanks to its ultra-modern seaport, available land and a ready workforce."

The 10 criteria used in the index rate factors important to each transportation mode, in proportion to its role in the supply chain. For instance, motor carriage is supported by four categories, from road infrastructure and density to conditions and accessibility to interstate highways - all elements that can affect the quality of motor carrier service.

Warehousing and distribution center operations are affected by taxes and fees, work force and labor.

For rail transport, the index looks at the availability of rail line networks and factors that influence railroad access. For waterborne cargo, access to open seas is important, and for air cargo, the index looks at the degree of congestion from heavy passenger travel that may adversely impact cargo operations.

Logistics, the business discipline of developing efficient networks to receive raw materials and deliver products to end-users, is a $910 billion industry in the U.S., representing nearly 9 percent of the gross domestic product (GDP). Transportation accounts for 63 percent of the total, followed by the "inventory holding" sector.

Logistics Today, a Penton publication based in Cleveland, serves individuals with jobs function and buying influences in all modes of transportation, warehousing and distribution, site selection, regional and global logistics, and technology applications.

For additional information about the new index and implications for southeast cities, contact Blanchard at 216.931.9794 or dblanchard@logisticstoday.com