Logistics Locations: Moving At The Speed Of Business

Through ports, rail, roadways, and airports, the ideal location enables companies to transport goods and access supplies quickly.

By Nora Caley
From the September/October 2022 Issue

Logistics is much more than the business of moving products. According to the Logistics Managers’ Index (LMI), metrics such as transportation, warehousing, and inventory are leading economic indicators, and can point towards potential movements in the overall economy.

The LMI is a monthly survey of more than 100 supply chain professionals, and reflects eight metrics: inventory levels and costs; warehousing capacity, utilization, and prices; and transportation capacity, utilization, and prices. A reading above 50.0 indicates that logistics is expanding, while a reading below 50.0 indicates a shrinking logistics industry. For August, the LMI was 59.7, down 1.0 from the July level of 60.7. The report is prepared by researchers at Arizona State University, Colorado State University, Rochester Institute of Technology, Rutgers University, and the University of Nevada, Reno, in conjunction with the Council of Supply Chain Management Professionals (CSCMP).

Logistics Locations
Through ports, rail, roadways, and airports, the ideal location enables companies to transport goods and access supplies quickly. (Photo: Adobe Stock/ Enanuchit)

Separately, the 2022 State of Logistics Report from the CSCMP noted that one of the trends that will drive continued growth in logistics is that e-commerce sales grew 10% last year to $871 billion, accounting for 14% of U.S. retail sales. Another trend is multi-shoring, as companies are moving some manufacturing closer to the U.S.

More goods than ever are being moved, and logistics companies are keeping up with demand by expanding in areas well-suited to receive and move goods. These regions are working to update infrastructure, embrace technology, and adapt to the changing industry. These hubs point to their strategic locations, well-prepared workforces, and access to modes of transport as factors that make them crucial to today’s logistics industry.

Here are several regions that are attracting businesses that are focused on logistics.

Kentucky: Creating Current & Future Economic Success

It is no secret that Kentucky is experiencing record-setting economic momentum, and the continued success of the state’s key industries is a large reason for that. From the EV and automotive industry to food and beverage, tourism and manufacturing, when the state’s strongest sectors see unprecedented growth, a strong economy that benefits all of Kentucky will follow.

Kentucky Logistics
Kentucky’s three air cargo hubs—UPS Worldport, DHL, and Amazon Air—have positioned the Commonwealth among national leaders in air-cargo shipment volume. (Photo: Kentucky Cabinet for Economic Development)

One of the state’s strongest and most critical industries is distribution and logistics, which helps Kentucky remain one of the premier landing sites for companies that are looking to access their consumer base quickly and more efficiently. The commonwealth’s unique resources power unparalleled logistics capabilities and businesses’ continued commitment to creating quality opportunities throughout the commonwealth.

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