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Why Distribution in the Midwest is a Smart Business Decision

Posted by Kenny English on Mon, Mar 09, 2015 @ 05:38 PM

Why Distribution in the Midwest is a Smart Business Decision

Since we’re located in the heart of Indiana, I admit that we’re a little biased when we talk about the logistics industry in the Midwest. But when you take a critical look at the industry, such as in this infographic, distributing from the Midwest is a good business decision for many retailers.

There are several factors that make the Midwest particularly well suited for retail distribution – and why the industry is doing so well. Here’s a quick rundown.

The logistics industry is healthy in the Midwest

Warehouses in the Midwest are some of the most productive in the nation. Particularly in Indiana, productivity levels have exceeded the US average and other regional areas in the Midwest. This means that product moves in and out of Midwest warehouses and into the hands of consumers faster and more efficiently than in other locations.

A friendly financial and tax climate

Regional taxes have been reduced over the last few years to make distribution in the Midwest easier on the distributers and more affordable for retailers. In particular, Indiana ranks among the top 20% relative to other states in tax indexes such as individual income tax, sales tax, unemployment insurance tax, and property tax.

Distribution in the Midwest has a national and global reach

It’s easier for businesses to ship and distribute products from a centralized location. Since the Midwest is right in the middle of the country, there’s easy railroad and highway access to every corner of the continental US.

The Indiana Railroad is the only rail that connects all 3 coasts (west coast, gulf coast, easy coast), and the per capita commodity flow by value across Indiana’s roads is second in the nation. This gives the Midwest the unique ability to ship throughout the nation, but also around the world.

When you take a look at the data and statistics, the benefits of shipping from the Midwest often outweigh the drawbacks. 

 

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Topics: Logistics, Retail, Distribution