Research Weekly – Attracting Transportation and Distribution Facilities

As transportation and distribution companies look to reduce their transportation costs and increase the speed at which they reach their customers, access to well-rounded infrastructure is crucial. In a recent CNBC ranking of the states with the best access to transportation (air, waterways, roads, and rail) Utah was 13th in the country (2nd in the west).

Road quality is also a key factor in determining the best locations for transportation and distribution facilities as it is a great indicator of a state's investment in infrastructure and an indirect reflection of the amount of money needed to spend on repairs.  The Federal Highway Administration produces a report measuring the overall quality of roads in each state. Utah was ranked 10th for urban roads and 23rd for rural.

Another aspect of determining a transportation or distribution facility is road congestion. As companies try to maximize the speed at which they reach their customers, congestion can also make areas less attractive. The American Highway Users Alliance studied the country’s largest bottlenecks. Not only was Utah found to not have any perpetually congested areas, it is also surrounded by fewer congestion areas than other Midwestern states that may have ranked higher on access to transportation.

Utah continues to lean on its heritage as the "crossroads of the west" while establishing itself as a great location for transportation and distribution facilities.

Source: Site Selection Group
Manufacturing & Distribution
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EDCUtah Mon, 02/27/2017 - 17:04