How can a region transform into a hotspot for logistics? Southern Arizona serves as an excellent example of such a scenario. As a result of its transformation over the last ten years, the region contributes $18.7 billion to the economy. The area has been revitalized, its population is growing and employment has been created for thousands of people.
The success of one of the most rapidly growing regions of America can be linked to the fact that it has been able to successfully market its strengths in supply chain, to major logistics companies. The area has an extremely reliable workforce, well-developed infrastructure, and is a prime location. Therefore, in recent years, some of the biggest distributors (Target, Tractor Supply Company, HomeGoods), have been drawn to the region.
How To Hotspot Your Logistics
Workforce development
Any region that is a hotspot for logistics shares the common feature of having a skilled workforce. Consequently, with a significant portion of the US population approaching retirement, companies are increasingly targeting regions with a young and skilled pool of employees for expansion.
Taking the example of Southern Arizona, officials collaborated with the University of Arizona and Pima Community College to impart valuable business skill sets to students numbering in thousands. This makes promoting the area to companies easy for officials who are responsible for its economic development. A skilled workforce would be ready to work for the companies that would want to expand there.
Location
Any region that has access to the larger markets of the country immediately becomes an attractive location for logistics. Such is the case with Tuscon. Companies prefer establishing their distribution centers at such locations because they can conserve their resources to reach their customers. Logistics hotspots need to be near big metropolitan areas to appeal to large distribution chains and suppliers.
Arizona’s political, social, and business ties with Mexico, grant the region a sizeable advantage in terms of the access it permits to the Mexican market. This results in the creation of new business opportunities and an expanded reach for supply chain centers. This in turn promotes trade between Mexico and the US, and balances export and import levels.
Infrastructure
A functional and well-maintained infrastructure is necessary for any transportation and logistics company to be effective. One of the crucial factors responsible for transforming Southern Arizona into a hotspot for logistics was the Port of Tuscon, an intermodal rail system. It offers a range of transportation options via rail within the Southwest.
Tuscon’s proximity to deep water ports on the West Coast is attractive for companies that conduct business at a global level.
Highlighting assets
South Arizona has also successfully been able to focus on and develop the assets that enable logistics functionality. Infrastructure, workforce, and location are all strengths that the region has successfully leveraged.
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For more in-depth information, read 6 Tips To Save Costs When Importing or Exporting Goods
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