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 throughout the region and around the world.
That’s why the number of logistics and distribution centers moving to or expanding in New Jersey is no accident. It’s strategic. Powerhouse companies like 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.
In fact, New Jersey’s transportation and distribution sector contributed more than $58.4 billion to the State’s Real Gross Domestic Product in 2016, the fourth highest dollar amount per state in the US. More than 382,200 workers were employed in the sector in 2016 – more than 11% of the State’s private sector workforce – and the number is growing. Since 2015 alone, New Jersey had a net gain of 21,600 jobs in the sector. That number is expected to continue to increase driven by the growth of e-commerce and international trade.
When it comes to e-commerce and same-day deliveries, it is all about location and market access. New Jersey offers companies both.
A distribution center in central New Jersey can reach more than 22 million consumers with a disposable income of $800 billion within a 2-hour drive. Plus, you can reach 40% of the US population within a day’s drive from any location in our State. It’s no wonder companies that rely on same-day deliveries believe that a New Jersey location gives them a strategic advantage.
E-commerce giant, Amazon, certainly does. It opened its first New Jersey fulfillment center in June 2014 – a 1.2 million-square-foot facility in Robbinsville. Today, Amazon’s footprint includes fulfillment and distribution centers in Carteret, Florence, Logan Township and Woodbridge, with new facilities on track to open in Cranbury, Edison and another in Logan Township in 2017. In fact, more Amazon workers were employed in New Jersey in 2017 than any U.S. state but Washington and California.
Amazon is not alone. Online 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. Blue Apron, Wayfair and Boxed are among the many e-commerce companies that have committed to major distribution facilities in New Jersey.
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.
For example, 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.
In the first half of 2017, more than 5.1 million square feet of space was delivered to New Jersey’s industrial inventory, already exceeding the total of 4.2 million square feet achieved throughout all of 2016 and more than 27% more than in 2015. Based on the strong demand, another 7.6 million square feet of industrial space was under construction in the first half of 2017, most of which is expected to be completed by the end of the year.
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|
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 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.
For example, 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.
As of June 2017, containerships carrying up to 18,000 twenty-foot equivalency units (TEUs) – nearly twice the size of previous containerships – have been authorized to sail beneath the bridge to call on terminals in Port Elizabeth and Port Newark. In September 2017, the 14,414 TEU cargo vessel, T. Roosevelt, arrived in Port Elizabeth. It was the largest ship to traverse the Panama Canal to arrive at a U.S. East Coast 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 2,075 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|
|wdt_ID||Daily Nonstop Flights From New Jersey||Destination|
|3||35||South America & Caribbean|
|4||14||Middle East & Africa|
More than 43 million passengers and 826,000 tons of air cargo moved through Newark Liberty International Airport in 2017, making it 15th busiest airport in the US.
United Airlines is among the more than 30 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 fly 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.
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.
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.
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.
At the newly-opened, 200,000-square-foot UPS Innovation Center in Parsippany, roughly 900 developers, designers and IT professionals will 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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