When the Wall Street Journal recently reported that Dallas was in late-stage talks with Amazon to become home to the company’s second U.S. headquarters, some people may have been surprised. By contrast, all of us at Amware were anything but.
Over the years, we’ve watched Dallas become one of the country’s hottest markets – for corporate headquarter locations and for logistics and distribution.
And it’s no surprise. Check out these advantages of using a Dallas fulfillment center as a central location for regional or national product distribution.
- Large local customer base. As the fourth-largest U.S. metropolis, Dallas-Ft. Worth (DFW) offers easy access to approximately 7.2 million local customers, as well as 28 million total consumers across the state. Not only that, the DFW area gains nearly 400 residents per day, making it the country’s fifth-fastest growing economy.
- Outstanding geographic location. If you’re looking to pursue a single or more consolidated warehouse strategy, consider this: A Dallas fulfillment center’s proximity to both coasts means that ground carriers can reach 93% of the country in two days or less – and that air carriers can reach every major U.S. city within four hours.
- A great market for eTail or retail start-ups. When it comes to being a business incubator, this is clearly not Dallas’s first rodeo. It gave some of the country’s most successful retailers and direct selling businesses their start, including Michaels, 7-Eleven, The Container Store, and Mary Kay. And several more, including JC Penney, Tuesday Morning, Sally Beauty, and Neiman Marcus, are headquartered there.
- Superior ground transportation infrastructure. With more than 10,539 miles of freight rail and 313,000-plus miles of public roads, Texas isn’t bragging when it says it has one of the country’s largest and most agile land transportation networks. DFW is close to three major interstates as well as I-20. In addition, two of the country’s largest rail operators have major locations nearby.
- Large transportation pool. More than 600 motor carriers operate out of the DFW metro area, and most major U.S. carriers have terminals in Dallas, a fact that offers your company a huge range of options when it comes to inbound and outbound transportation. Most important to you, Dallas is well served by all of the major parcel carriers, including UPS, Fed Ex, the USPS, and DHL, which recently opened its second major facility here.
- Sky-high transportation and parcel shipping advantages. Need to send a package same-day or next-day premium? No problem. Dallas-Ft. Worth International Airport is home to a major UPS air hub, while the Ft. Worth Alliance Airport houses Fed Ex Express’s Southwest regional sort hub.
- Amazing business friendliness. Chief Executive magazine has ranked Texas as the #1 state to do business in for 13 consecutive years, and Forbes recently ranked it #2, which isn’t surprising when you consider that:
- corporations in the Dallas-Ft. Worth area pay no corporate income taxes
- the cost of doing business in DFW is 4% below the national average
- Texas is a right-to-work state, with one of the country’s lowest rates of unionization.
- Lower warehouse construction costs. Here’s some news your finance folks will appreciate: It’ll cost you approximately 60% less to build a 500,000-square-foot Dallas fulfillment center than it would in a leading logistics market like Los Angeles – and anywhere from 30 to 40% less than it would in other popular venues like Central New Jersey, as the table below indicates.
- Great weather. Let’s not forget the climate itself. Dallas’s location in the Southern tier of the United States means the temperature is predominantly mild – something that other leading logistics markets in the Northeast, Northwest and Midwest can’t always brag about. In addition to enhancing quality of life, this can drive considerable operational efficiency because there’s less potential for weather-related delays.
- Amware Fulfillment operates a busy distribution campus just outside of Dallas (bet you saw that one coming). Here we handle primarily pick, pack and ship business for eTailers and direct selling companies.
If you want to dig a little deeper, download the Dallas Economic Development Guide, or visit regional resources like the North Texas Commission, many of which can provide you with some outstanding facts and figures. Better yet, contact Amware Fulfillment. As long-time Dallasites, we’d be happy to offer advice on everything from the best barbecue to how to streamline your fulfillment operations while improving customer service.