Dillon proves ideal location for distribution warehousing operations

Dillon is the most cost-effective location for distribution warehousing operations according to a recent study commissioned by the South Carolina Council on Competitiveness’ SC Logistics Industry Initiative.

The study was undertaken in partnership with the South Carolina Ports Authority and conducted by New Jersey-based consulting firm, The Boyd Company, Inc., to determine the most competitive locations for warehousing and distribution based on projected annual operating costs of 20 strategic logistics locations in the U.S.

Results of the study show that a warehousing/distribution facility in Dillon, SC could expect an operating cost of $15.3 million annually, the lowest cost among the 20 locations surveyed, and come just as the South Carolina Ports Authority prepares to open Inland Port Dillon – the state’s newest resource for shippers and suppliers and located within a 3,400-acre industrial site.

“Inland Port Dillon will be a vital addition to South Carolina’s growing logistics sector, supporting the Port’s overall volume growth and serving as a major economic driver for many facets of the industry,” says Micah Mallace, SC Ports Authority Director of Strategic Projects.   “As reflected in Boyd Group’s Distribution Warehousing Operating study, Dillon is indeed an ideal location for our state’s second inland port location.”

Cost projections for the study were based on a hypothetical 750,000 square foot facility employing 200 hourly workers. Annual labor costs were calculated to include hourly earnings, payroll costs, and fringe benefits.  In addition, costs for power, construction mortgage amortization, sales tax, and outbound shipping were all taken into consideration.   The Boyd Group used a robust set of data points, and the results further drive home the fact that South Carolina continues to be among the most business-friendly states for manufacturing and logistics.

“With record capital investment taking place in the manufacturing and logistics industries over the next five years, this study shows that there is also fertile ground for supporting peripheral freight infrastructure and industries to grow,” says Suzanne Dickerson, Director of SC Logistics.

Including Dillon, three of the top five locations are all based in South Carolina, with Greenville/Spartanburg and Charleston ranking third and fifth, respectively.

“The Boyd Company Distribution Warehousing Operating study reiterates the fact that South Carolina’s growing logistics sector is impacting all facets of the industry and that the inland port will continue to be a vital part of that growth throughout South Carolina,” says Bobby Hitt, Secretary of S. C. Department of Commerce.

Susie Shannon, President & CEO of the South Carolina Council on Competitiveness, says that the Boyd study will serve as a valuable resource for businesses looking to expand into and across the state.

“The Boyd study exemplifies the research that we produce here at the Council that helps companies make informed decisions about doing business in South Carolina,” says Shannon.  “It demonstrates to businesses that as the logistics industry continues to grow across the state, there will be an increased need for supplemental infrastructure such as distribution warehousing and that these operations can be executed at a competitive cost.”

For more information regarding the distribution warehousing operation cost study or SC Logistics, contact Suzanne Dickerson at sdickerson@sccompetes.org.

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