Top 10 States for Logistics

The 2017 Manufacturing & Logistics Report Card, compiled by Conexus Indiana for the Ball State University Center for Business and Economic Research, recently doled out rankings on how states have done in the areas of manufacturing and logistics. 

To measure the health of the logistics industry, the study included the share of total logistics industry income as a share of total state income, and the employment per capita. Also included was commodity flows data by both rail and road. Added to this was infrastructure spending as the per capita expenditure on highway construction.

The following slides are those states that received an A or B rating.

Illinois

The state has strong logistics to serve the 36 Fortune 500 companies that have headquarters here. Ten Illinois-based Fortune 500 companies, such as Boeing and Archer Daniels Midland, are headquartered in Chicago, while others, including Walgreens Boots Alliance and Deere are located in the suburbs or downstate. New to the list is TreeHouse Foods, a food processing company that entered the Fortune 500 shortly after buying Illinois-based ConAgra’s private-label food business.

Grade: A

Indiana

The state ranks first in pass-through interstates. It is home to the 2nd largest FedEx air hub worldwide, and 3rd in total freight railroads.

With three maritime ports that together rank 7th in waterborne shipping, Indiana provides the only statewide port system with direct waterway access to two U.S. coasts.  

Grade: A

Kentucky

The state is attracting a lot of investment. So far in 2017, $5.8 billion in investments, which include both new facilities and expansions, created 9,500 jobs.

One of the largest logistic investments is by Amazon which is locating a Prime air shipping hub in Kentucky's CVG Airport. This $1.49 billion investment will create 2,700 jobs. 

Grade: A

Texas

Texas' 380 airports, including 26 commercial airports, make up the second-largest state airport system in the U.S.

Over 313,210 miles of public roads run through Texas, more than any other state, including 11 primary interstate highways and seven auxiliary interstates.

Grade: A

Iowa

Iowa recently designated $3.2 billion over five years to improve the state’s highways, bridges and connections to major U.S. interstates (I-29 / I-80 / I-35) that crisscross the state. These key improvements coupled with a statewide rail system, several regional airports and the Mississippi River along Iowa's eastern border, allows for easier exporting.

Iowa also invested in the first-ever statewide Freight Optimization Study to further assist Iowa businesses cut freight costs and improve bottom lines.

Grade B

Kansas

Kansas ranks in the top 10 in the U.S. in railroad mileage with 4,721 miles of track, 2.2% of all US railroad miles. The state has four Class I and 13 Class III (short line) rail carriers ensure freight service.

Class I rail carriers roll over 2,790 miles of track throughout the state. The state’s Class III rail carriers use an additional 1,931 miles of track.

Grade: B +

Louisiana

The Port of New Orleans is the sixth-largest port in the U.S. based on volume of cargo handled. The Port of New Orleans handles about 62 million short tons of cargo a year.

The Port’s facilities include 20 million square feet of cargo handling area, more than 3.1 million square feet of covered storage area. To stay ahead of market demand, the Port has invested over $100 million in capital improvement projects since 2012 and has a Master Plan to expand the Napoleon Avenue Container Terminal to 1.5 million TEU capacity.

Grade: B +

Minnesota

Earlier this month Gov. Mark Dayton signed a $988 million infrastructure bonding bill. The bill earmarks funds for economic development ($101 million), transportation ($255 million), water infrastructure ($116 million), higher education ($212 million) and human services ($100 million), as well as other types of construction projects.

Grade: B

Nebraska

Nebraska is home to several of the nation’s leading transportation companies and is located on one of the busiest rail corridors in North America. Union Pacific Railroad’s headquarters, dispatch center, and largest rail yard also call Nebraska home.

The state hosts 11,500 trucking companies, two of which are in the nation’s top ten largest.

Another logistic advantage is that the state does not have an inventory tax, thereby making it an ideal location for distribution centers and warehousing operations.

Grade: B

New Jersey

New Jersey’s utility companies have been investing billions of dollars in infrastructure improvements. One example: PSE&G, the largest public utility in the state, has made major investments to harden and improve its electric and gas systems. Over the next several years, the company’s “Energy Strong” program will invest an additional $2.6 billion in New Jersey’s infrastructure.

New Jersey's other public utilities, including Jersey Central Power & Light, Atlantic City Electric, New Jersey Natural Gas and South Jersey Gas, have all invested heavily in infrastructure improvements over the past five years. Each has pledged to continue investing.

Grade: B-

North Dakota

North Dakota is home to two main trade corridors for the nation: the central North American Trade Corridor spans the state as Highway 83, and the Red River Trade Corridor crosses North Dakota as Interstate 29. Both connect Canada with Mexico. In addition, Interstate 94 crosses North Dakota from east to west and is part of the 8,410 miles of highway the North Dakota Department of Transportation maintains.

North Dakota has 19 different international ports of entry. There are 18 ports along the North Dakota-Canadian border. Of these, three are open 24 hours a day. Along with the 18 border crossings, the Hector International Airport in Fargo is also considered a 24-hour port of entry in the country, according to the U.S. Customs Service.

Grade: B

Ohio

Ohio is taking a different route toward infrastructure. It is building a reputation as an emerging center for high-tech automotive research. The Transportation Research Center just outside East Liberty wants to expand rapidly and attract new customers. Historically the site is a testing ground for prototypes of the newest sports cars, motorcycles and trucks long before they’re ever unveiled for the public.

Businesses like Honda—which has 1,400 workers from Clark and Champaign counties—and state and federal agencies are investing millions into Ohio as the region tries to position itself as a home for transportation manufacturing and research. Along with investment ramping up at the TRC, analysts and state leaders pointed to other multi-million projects along U.S. 33, the Ohio Turnpike and in Columbus.

Grade: B+

Wisconsin

Each year, Wisconsin ports handle over 40 million tons and $8 billion of cargo—much of it traveling to and from international markets. The Wisconsin Department of Transportation invested $52 million in our waterway infrastructure from 2010 to 2015 through the state’s Harbor Assistance Program.

Another advantage the state offers is that one of its cities, Madison, ranks first in the country for science, technology, engineering and mathematics (STEM ) graduates.

Grade: B