Distribution companies are abundant in Virginia and this sector continues to grow with companies like The Home Depot, Best Buy, Target, Wal-Mart, Ace Hardware and Amazon.com. Virginia is attractive due to its proximity to Eastern U.S. and Midwest markets. Let’s take a look at the top cities for warehousing services companies in Virginia.
- Chesterfield, VA tops the list of top cities to locate your warehouse. Chesterfield has the second lowest power costs in the region. The study surveyed cites that fall in line with corporate site selection trends that favor locations with strong links to the global marketplace via Class I intermodal rail terminals and deepwater container port operations. The operating costs in the survey were scaled to a hypothetical 500,000 square foot distribution center with 150 workers. The study also took into consideration factors important in site selection, such as labor, real estate, construction, taxes, utilities and shipping.
- Richmond– As the capital of Virginia, it is one of America’s oldest cities while remaining modern and vibrant. Richmond is only 90 miles from major metropolitan areas such as DC to the north and Norfolk/Hampton Roads to the east. Currently, 18 Fortune 500 companies have their headquarters in Virginia. Virginia is home to over 8 million people who are privy to world-class event venues, hotels and entertainment. Richmond’s footprint of distribution centers of massive size and economic impact was influenced by the arrival of Amazon in 2012 when they opened a 1-million-square-foot, $85 million fulfillment center in Chesterfield County’s Meadowville Technology Park. Amazon alone employs around 1,100 workers and adds an additional 2,000 during the holiday season. Amazon also simultaneously opened another $50 million distribution fulfillment center in Dinwiddie County also located in Richmond.
- Dulles– Dulles is home to Virginia’s largest airport which provides international and domestic services for cargo and passengers. Dulles is an attractive city for warehouse companies due to its steady expansion of facilities. Virginia’s transportation infrastructure offers key advantages to businesses allowing them to easily distribute goods to their customers around the world.
- Front Royal– The Virginia Inland Port resides in Front Royal serving as an intermodal collection point for containers from West Virginia, Ohio, Pennsylvania and Northern Virginia to name a few.
- Norfolk– Norfolk is considered to be the historic, urban, financial and cultural center of the region. It has a history of being a strong transportation point. Norfolk is home to the largest Navy base in the world. The city is bordered by several bodies of water. It has a population of around 247,189 making it the second most populous city of Virginia.
- Chesapeake– Located on the Atlantic Coastal Waterway, Chesapeake has miles of waterfront industrial and commercial businesses. Take your cue from Amazon once again, who also has a distribution center located in Chesapeake along with Toys R Us and The Dollar Tree.
- Suffolk– If Target’s distribution center isn’t reason enough to look at Suffolk for your next warehouse then the fact that it is the largest city in Virginia and the 14th largest city in the country should seal the deal. Suffolk also contains miles of waterfront property on the Nansemond and James River.
The industry as a whole has many highlights:
- Employs over 720,000 people
- The global logisitics industry has a direct economic output of $11.11 billion and supports an additional $9.3 billion in economic activity in Virginia alone
- Virginia is centrally located on the East Coast and is within a one-day drive time of nearly 43 percent of the US population
We would love to connect you with the right 3rd party logistics company for your business and give you a competitive advantage. We specialize in helping companies find the ideal location to distribute their goods. For more information, contact us today!