MERIC NEWS LETTER

 Kansas City and St. Louis Metropolitan Areas
 Top National Logistic Study

Picture of City and HighwaysNothing is more important to a region's economy than a robust transportation infrastructure upon which all logistics are built. The ability to quickly and economically move raw materials, supplies and finished products, are critical to a company’s success. Expansion Management Magazine compared 362 metropolitan areas on ten major criteria related to logistics. Missouri’s two major metropolitan statistical areas topped this National Logistic study that identified the most logisticly friendly cities in the United States.

Kansas City rated the top overall, followed by St. Louis, Atlanta, Houston, and Dallas-Fort Worth.

The categories compared in the study included transportation and warehousing; work force quality; road infrastructure; road congestion; road and bridge condition; interstate highway; state fuel taxes and fees; railroad services; water commerce; and air cargo.
 

 

Logistic Leader Table

 

For an alphabetical listing of the top 5-Star Logistic metropolitan areas, click here.

Other criteria in determining locations for new businesses or business relocation include the following:

  1. Geography. Geography is the starting point and most important criteria to determine a new business location. Identify areas that are close in proximity to market and raw materials needed for the business.

  2. Transportation infrastructure. Determine whether the location has the rail, interstate, or water access to ship raw material in and finished product out.

  3. Work force quantity. Examine the quantity of the Work force available in the area.

  4. Work force quality. Consider quality of Work force including education, skills, and absenteeism.

  5. Good business climate. Research the community's business climate, and current companies to determine if other companies are profitable in that area.

  6. Business-friendly environment. Appraise the local and state government’s relationship with new businesses to determine if they are business friendly and supportive of new companies.

  7. Regulations and bureaucracy. Examine the local rules and regulations that apply to your business and determine if they will add extra cost.

  8. Labor environment. Review the history of labor-management relationship in the community.  Identify recent history of work stoppages and other labor environments that could affect a business’s balance sheet.

  9. Reasonable living costs. Living costs are the single most important driver in determining the relative wage and salary structure for a community or region. A low cost of living will affect a worker’s ability to purchase a home and thrive on wages that a company can offer.

  10. Incentives. Incentives, no matter how generous, will never turn a bad location into a good location. The objective in your incentives negotiations is to reduce the cost of getting a new facility up and operating. Therefore, an incentive should reduce or eliminate an actual expense that a company would have to make in the new location.

Source: Expansion Management Online Magazine – www.expansionmanagement.com

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