Speed. Accessibility. Centrality. New Jersey is one of the world’s fastest-growing hubs for logistics and distribution. New Jersey is home to the nation’s second largest seaport, the second densest rail and road network, and the busiest airport system in the country when combined with New York City and Philadelphia. Our peerless domestic and international transportation network offers access to new markets, resources and opportunities.
With a centralized location, skilled workforce and robust supply chain, New Jersey is quickly becoming “the warehouse state.” Amazon, Goya Foods, Destination Maternity, Williams-Sonoma, Volkswagen, Barnes & Noble, Coca Cola, The Home Depot, IKEA, W.W. Grainger, Hyundai, Crate & Barrel, Five Below and Wakefern Food Corporation, the largest retailer-owned cooperative in the U.S., all have major distribution centers here.
Call it the Amazon effect. Retailers are looking for ways to keep up with customer expectations for next-day or same-day delivery. E-commerce sales continue to rise, leading to a surge of shipping volume requiring a robust network to quickly deliver packages. New Jersey’s warehouses, distribution and fulfillment centers are supporting this demand.
A distribution center in central New Jersey can reach more than 38 million consumers within a 2-hour drive. You can reach 33% of the US population within a day’s drive from any location in our State.
That’s why Amazon has operated in New Jersey since 2012 and now has over 17,500 full-time employees working at 10 fulfillment centers.
Amazon is not alone. Jet.com (headquartered in Hoboken), Blue Apron, Wayfair and Boxed are among the many e-commerce companies that have located major distribution facilities here. Online fashion companies are also choosing New Jersey for its central location and access to East Coast consumer markets. Startups Rent the Runway, a clothing rental service, and The RealReal, a luxury brand reseller, are filling customer orders in their Secaucus facilities. To meet further demand, The RealReal recently announced a second location in Perth Amboy with plans to hire 700 more employees.
While many 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.
Online grocery seller Peapod discovered it could double its capacity by choosing a distribution facility in New Jersey to service their customers in New York City. In the summer of 2014, the company opened a 300,00-square-foot facility in Jersey City to serve its 21 million online shoppers. Demand for warehouse and distribution space continues to be strong.
2018 was a historic year for the industrial real estate market in New Jersey. 25.7 million square feet of industrial space was leased and vacancy was lowered to 3.2%. New Jersey has exceeded 10 million square feet in annual absorption for five years in a row, for a total of more than 67 million square feet. In addition, 2018 saw industrial construction completions total 9.4 million square feet – this is only slightly lower than the century high-mark of 9.8 million square feet in 2017. Of the total built in 2018, 87.2% was leased either during development or immediately upon completion.
Companies are discovering that New Jersey’s optimal location offers access via road, rail, air or sea to virtually every place on the planet.
|3||Barnes & Noble|
|5||Burlington Coat Factory|
|7||Crate and Barrel|
The deep-water ports of Newark, Elizabeth and Bayonne in New Jersey, 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.
The Port Authority of New York and New Jersey, along with its shipping terminals, container ship companies and railroad, have undertaken major capital projects and infrastructure improvements over the past several years in preparation for the neo-Panamax era.
To accommodate the super-sized container ships that began traversing the widened and deepened Panama Canal in 2016, the Port Authority embarked on a $1.3 billion project to raise the clearance of the Bayonne Bridge at Port Newark/Elizabeth. The project pushed the bridge’s clearance up to 215 feet to accommodate the high capacity container ships coming from Asia to the East Coast through the expanded Panama Canal.
The port’s more competitive position and modernized infrastructure investment is paying off dividends. The result: 75% of all container carrier services make the Port of NY/NJ their first port of call on the East Coast. Between January to April 2019, the Port of New York and New Jersey handled 20,774 more loaded containers, known as 20-foot equivalent units or TEUs, earning recognition as the nation’s second busiest port.
The Bayonne Bridge project, along with major projects to expand rail and roadway capacity into and out of the ports, ensure New Jersey’s ports are ready for future trade activity.
New Jersey’s Foreign Trade Zones (FTZs) help companies keep costs in check by deferring the duty on goods until they leave the Zone. New Jersey has 5 FTZs strategically located throughout the State, including Port Newark/Elizabeth Marine Terminal’s FTZ #49. Spanning nearly 4,500 acres, FTZ #49 is one of the largest contiguous foreign trade zones in the U.S.
|wdt_ID||Foreign Trade Zones||Designation|
|1||FTZ #44||Morris County|
|2||FTZ #49||Port of Newark/Elizabeth Marine Terminate|
|3||FTZ #142||Salem County|
|4||FTZ #200||Mercer County/Airport in Trenton|
|5||FTZ #235||Ocean County|
Newark Liberty International Airport, JFK International Airport, LaGuardia Airport and Philadelphia International Airport represent the #1 airport system in the U.S. with ~600 nonstop destinations.
46 million passengers and 848,000 tons of air cargo moved through Newark Liberty International Airport in 2018. United Airlines is among the more than 35 airlines that fly out of Newark Liberty to a network of domestic and international destinations. The airport also accommodates nearly 1 million square feet of cargo space to move products across the U.S. and around the world.
New Jersey’s network of interstates and highways provide unrivaled access to consumers and companies across North America. A New Jersey distribution center can reach 107 million people, or 1/3rd of the U.S. population, within a day’s drive. New Jersey moves 600 million tons of goods each year.
Our State also boasts the nation’s highest railroad density. New Jersey is located in the middle of the Boston – New York City – Washington D.C. corridor, one of the world’s most concentrated and affluent markets, with 56.5 million residents and $3.75 trillion in economic output.
Commuter rail services offered by New Jersey Transit, PATH and Amtrak move people quickly and efficiently. New Jersey Transit is the 3rd largest provider of rail, light rail and bus service in the nation.
NJ Transit and PATH trains put Manhattan within an 18-minute commute from Northern New Jersey. Amtrak rail access gets passengers to Boston in 4 hours and Washington D.C. in 3 hours.
New Jersey’s interstate highways get motorists where they need to go. I-78 bisects the State from East to West, supporting ~3 million trucks each year. I-95 provides access to markets from Florida to New England.
The State is continuously making significant investments in infrastructure improvements. In July 2019, the New Jersey Department of Transportation announced $30.1 million in grant funding dedicated to improving local roads that serve as freight conduits.
New Jersey’s tech-enabled transportation sector is a perfect testbed for transportation and logistics innovation. The ecosystem is growing and VCs are taking notice. There has been $1 billion+ in VC investment in transportation technology in the New Jersey region in the past 3 years—a 96% increase from 3 years prior.
Our State’s research universities are shaping the future of transportation. Rowan University is the only academic institution in the Northeast with facilities to conduct state-of-the-art accelerated pavement testing. New Jersey is home to the world’s first city-scale smart mobility test lab, made possible through a public-private partnership with Rutgers University, the city of New Brunswick and DEVCO. National Aviation Research and Technology Park (NARTP), an auxiliary organization of Stockton University, is dedicated to facilitating R&D and commercialization of emerging aviation technologies. NARTP is a part of Atlantic County’s Aviation Innovation Hub, which also includes the Atlantic City International Airport and the Federal Aviation Administration’s William J. Hughes Technical Center – the nation’s premier air transportation laboratory and testing facility.
In an era of e-commerce, big data and automation, technology is driving logistics operations. New Jersey’s tech workforce and high concentration of data centers is helping logistics companies large and small manage the sophisticated technology critical to operational efficiency. At the UPS Innovation Center in Parsippany, roughly 900 developers, designers and IT professionals manage the technology that keeps 100,000 ground vehicles and 18 million packages moving each day. 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.
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:
Competitively awarded training grants help TLD companies develop industry-specific solutions to workforce challenges.Learn More
The Networks partner with businesses to develop workforce training, and connect companies with trained employees to address their workforce needs.Learn More
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