SPECIAL ADVERTISING SECTION

NORTHEAST TRADE AND LOGISTICS

By Amy Wunderlin

Referred to as “ the nation ’ s economic powerhouse ,” the Northeastern United States has long been a thriving region , shaped by its leadership in technology , finance , education and medicine . Economic productivity and a concentration of highly skilled workers has led the Northeast to become one of the most densely populated areas in the country .

Experiencing sustained expansion year over year , the region has created a lasting impact on the American market . The Northeast ’ s $ 5.1 trillion economy accounts for approximately one quarter of overall US GDP , and its average household income eclipses the national average by 19.8 %.

This forward motion — combined with its ports , network of highways and distribution-friendly consumption market — makes the Northeast a global trade and logistics hub . This is especially evident in the continued investment in warehousing and distribution centers ( DCs ), as well as port and infrastructure expansions across the corridor .

A growing e-commerce market and changing consumer preferences around delivery have created a demand for logistics centers across the US . Businesses looking to manufacture more products in America require additional warehousing space , as well .

The construction of numerous big-box retail mega-warehouses and 1 millionsquare-foot DCs has been a constant in the Northeast . In the last five years , New Jersey alone has added more than 43 million square feet of warehousing space , according to the state ’ s Department of Community Affairs .

“ Large-box retailers , online retailers ... can really reduce and control their costs with centralizing distribution in bigger spaces ,” said Sean Mahoney , director of marketing at the Port of Philadelphia ( PhilaPort ). “ What they find in the Philadelphia and South Jersey market is that you have a great labor force . You still have availability of labor . You have land that ’ s available for development , and you have the location , which is the richest consumer market in the world .

“ It makes a lot of sense ; from Philadelphia and the adjacent counties around Philadelphia , you can service New England , you can service Northern Virginia … all from one location ,” he added .

Growth is particularly strong from Southern New Jersey to the Lehigh Valley corridor in Pennsylvania , Mahoney said , noting that the Lehigh Valley — comprised of the cities of Allentown , Bethlehem , Easton and their surrounding areas — is the second-fastest-growing industrial real estate market in the country .

“ Much of that , if not majority of that miles-wise , is closer to PhilaPort than www . joc . com November 4 , 2024 | Journal of Commerce 31