What’s an easy way to reach residents of the country’s most populous state (not to mention many other parts of the Southwest and West) without breaking the bank?
We’ll give you a hint: It’s not likely to get hit by a hurricane, flood, earthquake, or blizzard anytime soon. And it’s located close to some of the “Grandest” scenery on the planet.
Welcome to Phoenix, Arizona. Home to some of the country’s highest temperatures, it’s also a red-hot fulfillment market – and getting hotter every day. Want to know more? Take a look at these impressive warehousing, transportation and fulfillment stats about Phoenix logistics companies from the Greater Phoenix Economic Council, Trammell Crow, CBRE Research, and Phoenix Forward.
- Rapid and economic delivery capability. Phoenix is within a half day’s drive of 34 million consumers, including residents of Southern California. Yet its operational costs are approximately 32% less than they are in California, not to mention substantially lower than they are in many other parts of the country.
- Easy access to you-know-who. Amazon operates multiple fulfillment centers throughout Phoenix and other parts of Arizona – including a PrimeNow hub, a customer/seller support center and a sorting center. Plus, it recently announced plans to relocate the operations team that handles services like PrimeNow to Phoenix.
- Superior UPS service. UPS selected Phoenix as a regional processing center, which is why it’s currently constructing and rolling out a new 970,0000-square-foot packaging hub in the nearby Phoenix suburb of Goodyear. Just as important, it already employs more than 5,100 people throughout Arizona.
- Strong Fed Ex/USPS presence. Phoenix is one of 25 SmartPost hubs established by FedEx, which also operates multiple other hub locations in the area. Other Phoenix logistics companies include Amware Fulfillment, which operates a nearby fulfillment center in Avondale, AZ.
- Extensive land transportation connectivity. Phoenix features quick access to much of the U.S. West Coast (and its ports) as well as the Southwest and Mountain West via three major area Interstates (I-10, I-8, and I-40) and two major railways (Union Pacific and BNSF).
- Lower warehouse construction costs. If you love a good bargain, consider this. A new 500,000-square-foot warehouse in Phoenix will cost you approximately 60% less than it would in Los Angeles – and anywhere from 30 to 40% less than it would in places like the Inland Empire or Portland, as the table below indicates:
- Large labor pool. With more than 4 million residents and 2,900 transportation and logistics companies, the Greater Phoenix region boasts an outstanding and experienced fulfillment labor pool, not to mention one of the youngest workforces in the country.
- Extensive air cargo capacity. Phoenix’s Sky Harbor International Airport handles nearly 800 tons of air cargo each day. Meanwhile, Phoenix-Mesa Gateway airport will soon house Skybridge Arizona, the country’s first international air cargo hub to include both U.S. and Mexico customs.
- A pro-business environment. Arizona is renowned for its right-to-work status and other business-friendly practices, like no inventory taxes.
- Impressive neighbors. Dozens of major retailers and brands have already done the math and elected to locate major logistics centers in the Phoenix area, including Walmart, Home Depot, Target, The Gap, and PetSmart. Will your fulfillment center be next?
In the spirit of giving you extra value, we’ll add one more important perk for Phoenix logistics companies: Unbelievable Sonoran cuisine. Technically speaking, this isn’t a business advantage. But once you give it a try, you’ll understand why we believe it’s a major advantage. (After all, who says that the food you eat during site visits has to be bland?)
For more information, we encourage you to visit some of the resources we mentioned earlier in this blog. Better yet, contact Amware Fulfillment. We can give you access to state-of-the-art Phoenix fulfillment center space while also providing you with a wide range of services designed to improve fulfillment services and reduce parcel costs.