When it comes to cost-effective fulfillment, evidence is mounting that you should plant your distribution center smack dab in the middle of the Garden State.
New Jersey itself is home to nearly 9 million people and approximately 25,000 transportation and distribution establishments. That makes it the country’s most densely populated state, and one of its busiest logistics markets. Within New Jersey, Middlesex County has emerged as a cost-effective distribution alternative to locations closer to New York City and the Port of NY/NJ.
If you are considering distribution centers in New Jersey, here are ten reasons (collected from officials at Middlesex County, “Choose New Jersey” and the New Jersey Transportation Authority) why this could be the right choice.
- Rapid delivery. Super-fast fulfillment is considerably more achievable since a fulfillment center in Central New Jersey (which includes town like Cranbury, Edison and Woodbridge) is within a two-hour drive of up to 22 million consumers.
- Efficient distribution. Want widespread national fulfillment without having to operate numerous DCs? Your company can reach up 40 percent of the U.S. population within one day from any part of New Jersey.
- Healthy industrial real estate market. With more than 800 million square feet of industrial building inventory, New Jersey is now the country’s third- largest industrial real estate market. But the competition for available space is keen and many properties are pre-leased before they ever hit the open market. One strategy to find space in this competitive Central New Jersey industrial real estate market is to contract with third party logistics companies that already operate here.
- Costs are lower in Central New Jersey. If you are comparing New Jersey distribution center locations, you’ll likely pay more in the northern part of the state due to high real estate costs. Results of a recent CBRE survey show that large industrial sites now cost an average of $1.75 million per acre in Northern NJ – about 2/3 higher than in Middlesex County in the central part of the state.
- Duty deferment. If you love the advantages of international sourcing but hate paying duties sooner than you have to, Middlesex County is home to five foreign trade zones.
- Easy access to some of the Northeast’s largest population centers. The major markets of New York City and Philadelphia are located within 60 miles of central New Jersey, as are many high-volume ports and airports.
- An outstanding highway network. Many distribution centers in New Jersey are located right along I-95, which runs from Miami to the Canadian border in Maine. The hottest area for development in recent years is at Exit 8a off the Turnpike, where former farm lands have been converted to industrial space. New Jersey has about 2,800 miles of highways, making it easy to get goods on the road and into customers’ hands fast.
- Multimodal flexibility. Want to offer more of your customers expedited package transportation? The state’s Newark Liberty International Airport is a major hub for express carriers thanks to 1 million square feet of air cargo space and numerous regularly scheduled departing air cargo flights.
- A highly experienced logistics workforce. More than 450,000 people already work in the state’s supply chain industry – including 59,000 in Middlesex County, which currently has the largest concentration of logistics jobs in the state.
- Plenty of good company. Many notable eCommerce, fulfillment and package delivery companies already have a significant presence in Central New Jersey. They’ve done the math and determined that the location makes excellent business sense. Last year, Amazon opened a huge warehouse in Middlesex Country, which serves as the company’s main mid-Atlantic region hub. Williams-Sonoma and Wayfair have also located distribution hubs here recently.
Rather than lease space directly, many companies choose to outsource fulfillment to a third party logistics company. Amware Logistics, which specializes in direct-to-consumer fulfillment services, operates a large New Jersey distribution center in Cranbury, NJ, not far from Amazon’s DC there.
Should you decide that it makes sense to have a distribution center in New Jersey but don’t have the budget or bandwidth to operate your own facility, Amware can give you access to choice distribution space fast, with none of the capital expense or workforce management headaches. We offer a wide range of services designed to improve delivery service, control fulfillment costs, and drive down your parcel spend.