Relocating a warehouse which state too choose

[putnam6]

I have a friend who is relocating a warehouse from the northeast, beyond corporate tax rates, cost per square foot, centrally located, generally nice weather, secure, and relatively safe, what are some hidden issues that can be important?

He does significantly more business on the East Coast and some deliveries can be time-sensitive, so while he hasn't ruled out Nevada, Washington, Wyoming, or any other state their advantages would have to go further than say Texas, Ohio, or South Carolina.

Seasonal shipping can be a concern, November through April are the biggest months, and any days lost to weather can become a semi-hassle.

Does DI have any thoughts or input? Thanks

[Maxmars]

I have a friend who is relocating a warehouse from the northeast, beyond corporate tax rates, cost per square foot, centrally located, generally nice weather, secure, and relatively safe, what are some hidden issues that can be important?

He does significantly more business on the East Coast and some deliveries can be time-sensitive, so while he hasn't ruled out Nevada, Washington, Wyoming, or any other state their advantages would have to go further than say Texas, Ohio, or South Carolina.

Seasonal shipping can be a concern, November through April are the biggest months, and any days lost to weather can become a semi-hassle.

Does DI have any thoughts or input? Thanks

I wish I was remotely qualified to help.  

But I well know that logistics is an art.  As much as economics drives it, the bottom line is: proper material distribution and transport is like the 'brush' to the 'paint.'

Sorry I can't be of any direct help... Good Luck.

[UltraBudgie]

depends on the scale. probably being close to a shipping hub is more important than base tax rate, cost-wise? that, and labor cost and availability. look at the union situation. if smaller, stability of the tax environment and local economic situation can matter more than a few percent savings, i imagine. find a business or two with similar logistic challenges, and copy what they're doing. don't reinvent research that isn't specific to your business focus.

if larger, this is something that should be discussed with various business-oriented local politicians whom your checkbook supports. that's how it works in america.

you can trust my advice, because it comes entirely from the cloaca of a budgie.

[sahgwa]

I have a friend who is relocating a warehouse from the northeast, beyond corporate tax rates, cost per square foot, centrally located, generally nice weather, secure, and relatively safe, what are some hidden issues that can be important?

He does significantly more business on the East Coast and some deliveries can be time-sensitive, so while he hasn't ruled out Nevada, Washington, Wyoming, or any other state their advantages would have to go further than say Texas, Ohio, or South Carolina.

Seasonal shipping can be a concern, November through April are the biggest months, and any days lost to weather can become a semi-hassle.

Does DI have any thoughts or input? Thanks

I work in 3PL from both a freight and warehousing side and since you largely do East Coast, I would recommend NC, SC, GA on all of your points, except for weather of course, but you always have climate controlled for storage.  Specifically, Charleston, Raleigh, Atlanta, Dalton....  
One thing you didn't mention is how large of a pool of candidates you have to choose from / competition.  
In TX you not only have the distance but there are not that many good choices outside of Dallas/Houston and as I am sure you are aware, all warehouses are at capacity and so have their pick on who they do business with.

[putnam6]

I wish I was remotely qualified to help.  

But I well know that logistics is an art.  As much as economics drives it, the bottom line is: proper material distribution and transport is like the 'brush' to the 'paint.'

Sorry I can't be of any direct help... Good Luck.

No worries Maxmars this isn't urgent, it's more of just helping a friend with advice. Ive done this before but it was on a smaller scale and we were locked into our location previously.

[putnam6]

depends on the scale. probably being close to a shipping hub is more important than base tax rate, cost-wise? that, and labor cost and availability. look at the union situation. if smaller, stability of the tax environment and local economic situation can matter more than a few percent savings, i imagine. find a business or two with similar logistic challenges, and copy what they're doing. don't reinvent research that isn't specific to your business focus.

if larger, this is something that should be discussed with various business-oriented local politicians whom your checkbook supports. that's how it works in america.

you can trust my advice, because it comes entirely from the cloaca of a budgie.

No worries UB this is just helping a friend, Ive done something similar but it was a decade ago, on a smaller scale, and we were locked into our location. Forgot all about unions even though he has a smallish operation, it is a concern for other factors. Especially for a demo and buildout, but think it's too small to attract the attention of a politician, maybe a bureaucrat at this most. It's one reason the Southeast is appealing. 

I agree in just a cursory look any advantages of no corporate taxes can be negated by cost per square foot and other logistics issues. Hell, in most places Ive looked at he can get 1/3rd to 1/2 less per square foot than he pays now, and the few employees that are relocating will appreciate the lower cost of living.  

You definitely gave me some bullet points to add thanks...

[putnam6]

I work in 3PL from both a freight and warehousing side and since you largely do East Coast, I would recommend NC, SC, GA on all of your points, except for weather of course, but you always have climate controlled for storage.  Specifically, Charleston, Raleigh, Atlanta, Dalton....  
One thing you didn't mention is how large of a pool of candidates you have to choose from / competition.  
In TX you not only have the distance but there are not that many good choices outside of Dallas/Houston and as I am sure you are aware, all warehouses are at capacity and so have their pick on who they do business with.

Yeah, Georgia and South Carolina were already on the list, but I did not know Texas still had such fierce competition for space, I haven't been plugged in there since the 90s but even then the owner I knew wasn't happy in Houston for various reasons. Georgia, North Carolina, or South Carolina would be ideal for numerous logistical reasons. 

As a former salesperson having a warehouse you and your clients can access easily can help close a lot of huge contracts. But hell that might have changed too, but I'd think it would still have some appeal.

[sahgwa]

Yeah, Georgia and South Carolina were already on the list, but I did not know Texas still had such fierce competition for space, I haven't been plugged in there since the 90s but even then the owner I knew wasn't happy in Houston for various reasons. Georgia, North Carolina, or South Carolina would be ideal for numerous logistical reasons. 

As a former salesperson having a warehouse you and your clients can access easily can help close a lot of huge contracts. But hell that might have changed too, but I'd think it would still have some appeal.

Depends on how much money you are trying to save, lately a lot of clients are pushing for onsite storage or transfer or installation with no storage which is clumsy.

[putnam6]

Depends on how much money you are trying to save, lately a lot of clients are pushing for onsite storage or transfer or installation with no storage which is clumsy.

Not sure if Im following you... This needs to be for warehousing and shipping apparel most times it is a 2-3 person staff.
Built out with industrial apparel racks a couple of basic offices incoming shipments 2-3 times a year outgoing would be daily. 

IIRC the owner before him had leased space near where he lived back in the 80s and the company has been there ever since. For perspective, the company has an 800-page inventory of 35 lines per page. So he might be in a better position to find a free-standing building and have it built out.

He is a good friend and his company is well-run and highly respected in the industry, so he wants this to be kind of a showpiece like a few other manufacturers have. But we will see once he decides on where....