Northeast Ohio is a strategic hub for 3PL warehousing due to its central location, access to major transportation networks, and proximity to key markets in the Midwest, Northeast, and Southeast regions. Let’s dive a little deeper into the key features of 3PL warehousing in Northeast Ohio.
1. Infrastructure and Connectivity:
Northeast Ohio benefits from extensive transportation infrastructure via air, land, rail, and waterways. In fact, the region boasts the 4th largest interstate system in the U.S.[1] This infrastructure facilitates efficient distribution of freight across the U.S., as well as internationally.
Commercial airports include Cleveland Hopkins International Airport and Akron-Canton Airport. Major interstate highways originate or cross through the region, including I-71, I-76, I-77, I-80, and I-90. This means that access by truck to 50% of the U.S. populace and purchasing power (and 67% of the Canadian economic base) within one day’s drive is possible.[2] Two Class I freight railroads, CSX and Norfolk Southern, service the area along with regional railroads—the largest being Wheeling & Lake Erie Railway.[3] In the Port of Cleveland, the third-largest Great Lakes region port, over 13 million tons of cargo travel through on an annual basis[4]. This Port facilitates efficient distribution across the U.S. and internationally.
2. Diverse Services:
Ohio ranks 5th among all U.S. states for warehousing services and is only one of 5 states to have received an A grade in logistics.[5] Warehousing providers in the region may offer a wide range of services. Look for providers that offer inventory management, order fulfillment, returns management (reverse logistics), and value added services like kitting, light assembly, and co-packing. Value-added services help businesses differentiate their offerings and adapt to market demands.
3. Expert Workforce:
Northeast Ohio is home to nearly 64,000 trained workers in the fields of supply chain and logistics.[6] Several local universities and colleges offer majors and/or certifications in supply chain management. These graduates will help to sustain, if not significantly grow, the amount of available skilled workers in these fields.
4. Regional Focus with National and International Reach:
Having facilities in Northeast Ohio enable warehousing companies to provide plenty of service to manufacturers and retailers that have significant business in the Midwest. However, it also offers those same businesses an advantage when sending products to other parts of the country, Canada, and overseas. Shorter days in transit and lower shipping fees are attractive to companies looking for ways to cut costs without sacrificing quality. Additionally, warehouses located in Foreign Trade Zones (FTZ’s) offer cost savings on duties for companies that routinely import and/or export goods.
We have presented four key features of warehousing in Northeast Ohio, but they are many more. The region’s warehousing industry is positioned for continued growth due to increasing demand for 3PL services, driven by the need for efficient supply chain solutions in reasonable proximity to the majority of U.S. customers. The region’s capacity to accommodate large-scale operations, while offering flexibility for smaller or seasonal businesses, makes it an attractive location for warehousing services.
1 “Logistics,” Team NEO, https://northeastohioregion.com/industries/logistics.
2 “The Summit County Advantage,” Summit County, Ohio, https://www.summit4success.com/the-summit-county-advantage/logistics-hub-to-u.s.-markets.
3 “The Summit County Advantage,” Summit County, Ohio.
4 “About the Cleveland-Cuyahoga County Port Authority,” Cleveland-Cuyahoga County Port Authority, https://www.portofcleveland.com/about/.
5 “Logistics,” Team NEO.
6 “Logistics,” Team NEO.