Last week I had the opportunity to listen to two site selectors who manage global logistics practices. The first was Curtis Spencer, President of IMS Worldwide, who spoke at the Consultants Forum Conference, which I attended to meet with a variety of site selectors and hear updates on topics ranging from the global climate for foreign direct investment (“FDI”) to opportunities in various industry sectors. The second was Tim Feemster who manages Grubb & Ellis’s global logistics practice, the keynote speaker at the Hartford-Springfield Economic Partnership. The EDC also hosted Tim for a luncheon with local business executives and economic development officials. Both presented excellent overviews of global logistics trends. Logistics has been the featured topic at our last two quarterly commercial brokers meetings, too, where we have heard speakers describe logistics trends and opportunities around New England.
Here are some key takeaways:
- Logistics costs and supply chain management have become a key driver of corporate location strategy, now rivaling talent availability in importance.
- Cost, sustainability and carbon footprint considerations are convincing companies to locate their facilities where inbound materials can be delivered primarily by sea and double-stack rail and they are proximate to their customers.
- Logistics projects that are underway in Western Massachusetts (particularly the CSX-MassDOT rail projects) will make the region more competitive for logistics and potentially manufacturing facilities.
- These trends will provide cost-cutting and sustainability-enhancing options for local firms who import material and export product, domestically and internationally.
The EDC will be focused on these issues and opportunities and we will provide updates when appropriate. Please contact me at email@example.com or 413-755-1300 to discuss this in more detail.