Choosing an Economical East Coast Warehouse

If your company is seeking an East Coast warehouse, cost is obviously a major consideration.  And cost, as it relates to warehousing, comes down to two things: land and people.

Where land is less expensive, the cost to build or lease warehousing and distribution space will be, as well.  Wage rates for warehouse labor tend to be lower outside of major cities or port locations.

If you examine warehousing costs from these two perspectives for several East Coast warehouse markets, you’ll find that Rocky Mount, NC offers the most favorable labor and space rates. The savings from these two major cost drivers could easily deliver millions of dollars to your bottom line over time.  The following chart illustrates the market-to-market comparison.


Why consider Rocky Mount for your East Coast warehouse?

Rocky Mount has other advantages that make it an interesting choice for a logistics hub.

Often, warehouses outside major metro areas drive up freight costs because they are away from major freight lanes. Rocky Mount, though an hour east of Raleigh-Durham, is located right along Interstate 95, the major North-South highway known as “East Coast’s Main Street.”

According to Oppie Jordan, a vice president at Carolinas Gateway Partnership, “Rocky Mount is centrally located halfway between New York and Florida. More than 30 motor carriers and 10 terminals have located in this area, offering one-day access to the East Coast's major markets.  And, being closer to the ocean means an easy drive to reach the deep water ports of Morehead City and Wilmington, NC, and Norfolk and Hampton Roads, VA.”

Rocky Mount is also home to the Kingsboro Industrial Megasite – a 1,400-acre park approved for development.  QVC built its largest distribution center in the park and Kanban Logistics runs a large Rocky Mount warehouse right next to QVC.  From this location, Kanban operates the only activated, general purpose foreign trade zone in Eastern North Carolina. The park has direct rail access (CSX).

In a recent interview with the Rocky Mount Telegram, N.C. State University economist Dr. Mike Walden said, “With Rocky Mount being part of the economic development of the Triangle region, maybe a firm that wants to come to the Triangle might find that area costly. Rocky Mount might be a perfect fit because the cost is lower but they can still be close to the Triangle.”

Like we said, if you want to lower East Coast warehouse costs, it comes down to the cost of land and people.