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.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The U.S. manufacturing sector has become an engine of new job creation over the past four years, thanks to a combination of federal incentives and mega-trends like nearshoring and the clean energy boom, according to the industrial real estate firm Savills.
While those manufacturing announcements have softened slightly from their 2022 high point, they remain historically elevated. And the sector’s growth outlook remains strong, regardless of the results of the November U.S. presidential election, the company said in its September “Savills Manufacturing Report.”
From 2021 to 2024, over 995,000 new U.S. manufacturing jobs were announced, with two thirds in advanced sectors like electric vehicles (EVs) and batteries, semiconductors, clean energy, and biomanufacturing. After peaking at 350,000 news jobs in 2022, the growth pace has slowed, with 2024 expected to see just over half that number.
But the ingredients are in place to sustain the hot temperature of American manufacturing expansion in 2025 and beyond, the company said. According to Savills, that’s because the U.S. manufacturing revival is fueled by $910 billion in federal incentives—including the Inflation Reduction Act, CHIPS and Science Act, and Infrastructure Investment and Jobs Act—much of which has not yet been spent. Domestic production is also expected to be boosted by new tariffs, including a planned rise in semiconductor tariffs to 50% in 2025 and an increase in tariffs on Chinese EVs from 25% to 100%.
Certain geographical regions will see greater manufacturing growth than others, since just eight states account for 47% of new manufacturing jobs and over 6.3 billion square feet of industrial space, with 197 million more square feet under development. They are: Arizona, Georgia, Michigan, Ohio, North Carolina, South Carolina, Texas, and Tennessee.
Across the border, Mexico’s manufacturing sector has also seen “revolutionary” growth driven by nearshoring strategies targeting U.S. markets and offering lower-cost labor, with a workforce that is now even cheaper than in China. Over the past four years, that country has launched 27 new plants, each creating over 500 jobs. Unlike the U.S. focus on tech manufacturing, Mexico focuses on traditional sectors such as automative parts, appliances, and consumer goods.
Looking at the future, the U.S. manufacturing sector’s growth outlook remains strong, regardless of the results of November’s presidential election, Savills said. That’s because both candidates favor protectionist trade policies, and since significant change to federal incentives would require a single party to control both the legislative and executive branches. Rather than relying on changes in political leadership, future growth of U.S. manufacturing now hinges on finding affordable, reliable power amid increasing competition between manufacturing sites and data centers, Savills said.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.