An International Logistics Gateway
Why has New Jersey become one of the world’s fastest-growing hubs for logistics and distribution?
It’s simple. Our perfect location and world-class transportation infrastructure make it easy to move products across the region and around the world. In fact, when the JLL Industrial Research Team conducted their first-ever study of top distribution markets, they found that New Jersey and the New York Metro region ranked #1 in the U.S.
Goya Foods, the largest Hispanic-owned food company in the United States, recognizes the advantages of a New Jersey location. In April 2015, it unveiled a state-of-the-art $127 million headquarters and warehouse/distribution facility in Jersey City.
It’s just one many powerhouse companies with New Jersey facilities. Destination Maternity, Williams-Sonoma, Volkswagen, Barnes & Noble, Coca Cola, The Home Depot, IKEA, W.W. Grainger, Hyundai, Subaru, Crate & Barrel, Five Below, Toys R Us and Wakefern Food Corporation, the largest retailer-owned cooperative in the U.S., all have major distribution centers here.
Nearly 25,000 transportation, logistics and distribution centers are located in New Jersey. In total, companies in the sector employed nearly 365,000 workers in 2013 – more than 11% of the State’s private sector workforce. The national average is 8.8%.
A Growing Hub for E-Commerce and Same-Day Deliveries
The number of logistics and distribution centers moving to or expanding in New Jersey is no accident. It’s strategic.
Our perfect location in the heart of the U.S. Northeast Corridor gives companies access to one of the most concentrated and affluent consumer markets in the world. A distribution center in central New Jersey can, within a 2-hour drive, serve over 22 million consumers, who collectively have nearly $800 billion in disposable income.
It’s no wonder companies that rely on same-day deliveries of fresh foods, groceries and other products believe that a New Jersey location gives them a strategic advantage.
E-commerce giant, Amazon, opened its first fulfillment center here in June 2014 – a 1.2 million-square-foot facility in Robbinsville – and has added facilities in Woodbridge and Moonachie since. In 2016, Amazon announced its plans to open 3 more New Jersey fulfillment centers – Florence, Carteret and Teterboro – totaling more than 2 million square feet, to meet the growing demand.
Likewise, online grocery retailer Jet.com leased an additional 705,000-square-foot distribution center in South Jersey to position itself for overnight deliveries in the Mid-Atlantic and Northeastern United States.
Location, Location + Affordable Space
While many logistics and distribution companies choose New Jersey for its strategic location, others are equally attracted to its affordable real estate, which offers them a good deal more space for the money than neighboring New York.
In fact, many companies, including online grocery seller Peapod, are choosing distribution facilities in New Jersey to service their customers in New York City. In the summer of 2014, Peapod doubled its capacity to service its 21 million online shoppers by opening a 300,000-square-foot facility in Jersey City. Demand for warehouse and distribution space continues to be strong.
At one point in 2014, 12 warehouses and distribution centers were under construction in New Jersey, totaling more than 5 million square feet, to meet the growing demand from logistics and distribution operations. The following year, more than 3 million square feet of new space was delivered to the New Jersey market with another 6 million square feet scheduled to come on line in 2016. The area adjacent to the New Jersey’s Ports absorbed more than 3.87 million square feet in 2015.
Companies are discovering that New Jersey’s optimal location offers access via road, rail, air or sea to virtually every place on the planet.
Major Companies with Distribution Centers in NJ
|Barnes & Noble|
|Burlington Coat Factory|
|Crate and Barrel|
|Value City Furniture|
World Class Seaports
New Jersey is home to one of America’s busiest seaports – the Port of New York and New Jersey – making it easy for companies to reach National and International markets.
The deep-water ports of Newark, Elizabeth and Bayonne, when combined with the Port of Authority’s regional air cargo network, serve as a North American gateway for international freight and leading hub for domestic cargo.
Maritime Cargo Center on the East Coast
Jones Lang LaSalle Seaport Index
Busiest Seaport in North America
in cargo moved through the Port of NY and NJ in 2014
Foreign Trade Zones
|FTZ #44||Morris Country|
|FTZ #49||Port of Newark/Elizabeth Marine Terminate|
|FTZ #142||Salem County|
|FTZ #200||Mercer County/Airport in Trenton|
|FTZ #235||Ocean County|
5 Foreign Trade Zones
New Jersey’s Foreign Trade Zones (FTZs) help companies keep costs in check by deferring the duty on goods until they leave the Zone. Port Newark/Elizabeth Marine Terminal’s FTZ #49, which spans 2,075 acres, is one of the largest contiguous foreign trade zones in the U.S.
Exceptional Global Access by Air
More than 36 million passengers and 700,000 tons of air cargo move through Newark Liberty International Airport each year, making it the U.S.A.’s 14th busiest airport.
United Airlines is among the 25 airlines that fly out of Newark Liberty to a network of domestic and international destinations. The airport also accommodates nearly 1.4 million square feet of cargo space to move products across the U.S. and around the world.
In addition to Newark Liberty, business travelers can access scheduled air service all over the State. Whether they choose to fly out of Trenton / Mercer Airport, Atlantic City International Airport, JFK International Airport, LaGuardia Airport or Philadelphia International Airport, passengers can jet almost anywhere on the planet. And, if you need to make just a quick hop, there are 40 public use airports in New Jersey that can make it happen.
DAILY NON-STOP FLIGHTS
|35||South America & Caribbean
|14||Middle East & Africa|
Unmatched Road and Rail Networks
New Jersey’s network of interstates and highways provide businesspeople unrivaled access to consumers and companies along the highly-populated Northeast Corridor. These public roadways also accommodate approximately 500,000 truckloads of freight every day. A New Jersey distribution center can reach 40% of the U.S. population within a day’s drive.
Don’t want to transport products by road? The State also boasts an extensive cargo rail network that makes it easy for companies to transport goods and products from New Jersey to markets across North America.
Plus, commuter rail services offered by New Jersey Transit, PATH and Amtrak move people throughout the State. They also take passengers to major metropolitan areas along the East Coast, including Boston, New York City and Washington D.C.
Miles of Interstates and Highways
Commuter Rail Lines
Miles of Freight Lines
Technology: The Driver of Logistics Operations
UPS may be a global shipping giant, but it considers itself a technology company. That’s because in an era of e-commerce, big data and automation, technology is driving logistics operations.
New Jersey’s tech savvy workforce and high concentration of data centers is helping logistics companies large and small manage the sophisticated technology and data that has become critical to operational efficiency.
When UPS opens its state-of-the-art, 200,000-square-foot Innovation Center in Parsippany next year, roughly 900 developers, designers and IT professionals will manage the technology that keeps 100,000 ground vehicles and 18 million packages moving each day. They’re part of a New Jersey IT team that totals more than 2,000. There’s no doubt the logistics leader recognizes the value of our highly-educated workforce. Its headquarters for global IT has been here since 1991.
Over the years, New Jersey also has emerged as a data center leader with one of the highest concentrations of data centers in the U.S. With more than 100 data centers in North Jersey alone, logistics companies have access to the facilities and servers that store, manage and disseminate the data that’s critical to the continuity of daily operations.
Incentives & Workforce Development
Transportation, logistics and distribution (TLD) companies may qualify for a number of attractive incentives and workforce development programs to help companies locate or expand their operations in the State including: