THE TOP LOGISTICS METROS IN THE SOUTHEAST
June 2003
Originally published in Expansion Management

When seeking the best place to set up a logistically driven operation in the Southeast U.S., consider these locales.

Logistic and distribution minded companies that need to have operations in the southeastern portion of the United States have the luxury of being able to choose from an ample selection of suitable sites and locations.

Known for its automotive industry clusters and other major distribution operations, the Southeast is a natural fit for these types of logistically dependent industries. Proximity to the East Coast, a variety of major markets, extensive transportation options and work force talent make the Southeast the ideal location for many companies.

Savannah, Ga., was ranked No. 1 on Expansion Management's list of Top Logistics Metros in the Southeast (see accompanying list).

The regional ranking is an offshoot of the 2002 Logistics Quotient™, a joint study conducted by Expansion Management and Transportation and Distribution magazines, which compares the relative "logistics friendliness" of the various Metropolitan Statistical Areas (MSAs) throughout the United States.

The Logistics Quotient™ was published in the September 2002 issue of Expansion Management.

Since 1988, Pier 1 Imports' distribution center in Savannah has served 145 stores in six states with 397,000 square feet of space. But the need for increased space resulted in a major expansion project.

The Fort Worth, Texas.-based retailer is building a new distribution center at the Crossroads Business Center in Savannah. The facility, which opened in March, will consist of 766,000 square feet of distribution area and 17,000 square feet of administration facilities. "Building a new complex and doubling our space recognizes our potential for growth in the Southeastern United States," said Marvin Girouard, chairman and CEO of Pier 1.

The new distribution center will eventually serve nearly 200 stores. Jacksonville, Fla., was ranked No. 2. Earlier this year, BMW selected Jacksonville for its regional parts distribution center. The Jacksonville facility joins BMW's three other U.S. parts distribution centers — located in New Jersey, Mississippi and California.

The project is testament to Jacksonville's popularity with relocating and expanding companies seeking specific logistical assets.
Feeling Right at Home, The Southeast has become a comfortable home-away-from-home for many European companies. Where some have already blazed the trail, others are sure to follow, taking confidence in their fellow Europeans' location decisions and their subsequent success.

Already this year, companies from Germany and Slovenia said they would be doing business in South Carolina.Germany-based Zeltwanger LP said it would establish a North American presence with the location of a manufacturing operation in the Charleston (No, 5) area. The company makes high-precision machinery components and the need for quality workers was an important consideration. "As we investigated possible locations for this new operation, we noted that the Charleston area has a growing base of sophisticated manufacturers, which can help support our operation," said Ulrich Zeltwanger, president of Zeltwanger.
For Slovenia-based Hidria Corp., the holding company for TOMOS USA, market demands called for an expansion at its current facility in Greenville, S.C. (No. 12).

The company said in March it would add a new division, Perles of Switzerland, to its distribution operations in Greenville's Beechtree Business Park. Four new jobs will result from the expansion.

Europe Also Comes to Nashville Nashville, Tenn., (No. 6) became the location of choice for a German dishwasher maker — the world's second largest manufacturer of commercial dishwashers, in fact—earlier this year. Meiko USA Inc., a subsidiary of Offen-burg, Germany based Meiko Maschi-nenbau GmbH & Co., has set down American roots in Nashville in hopes of tapping into a potentially untapped market on this side of the Atlantic Ocean.

The new facility will serve as the jumping off point for the firm's U.S. operations and will house business, sales, distribution and light manufacturing operations.

Apparel Retailer Opens Atlanta DC
Chico's FAS Inc., a Fort Myers, Fla.,-based women's apparel retailer, acquired a 233,000 square foot distribution center in metro Atlanta (No. 3). The retailer is investing $12 million to upgrade the facility, which will handle most of the distribution functions.
"This acquisition [was] needed in order to meet the growing demands because of the company's increasing sales and continued growth," said Scott Edmonds, president and chief operating officer of Chico's
Top 15 logistic cities is the Southeast

1. Savannah, GA
2. Jacksonville, FL
3. Atlanta, GA
4. Chattanooga, Tenn-GA
5. Charleston – North Charleston, SC
6. Nashville, TN
7. Mobile, AL
8. Birmingham, AL
9. Columbia, SC
10. Miami, FL
11. Macon, GA
12. Greenville-Spartanburg-Anderson, SC
13. Tampa-St Petersburg-Clearwater, FL
14. Knoxville, TN
15. Augusta-Aiken, GA, SC