Utah attractive to distributors

Utah long has been viewed by many in the nation's business community as ideally situated to foster the movement of manufactured goods between both the East and West coasts, and Canada and Mexico.

And now the state known informally as the "Crossroads of the West" is getting a boost to its reputation as a premier location for warehousing and distribution operations.

A new survey by one of the nation's leading corporate site selection companies - The Boyd Co. of Princeton, N.J. - found the cost of operating a distribution warehouse in the Salt Lake City/Provo area was the second lowest among 30 cities it studied.

"Utah has a lot going for it," said consultant John Boyd. "You have a pro-business governor, a relatively low corporate income tax rate, low land and utility costs and a central location."

The study looked at the cost of operating a 500,000-squarefoot distribution center employing 225 hourly workers that ships its cargo by truck to markets in California and through the West.

Annual operating costs ranged from a high of $24.6 million in Chicago to a low of $13.7 million in Mohave Valley, Ariz., Boyd said. The cost of operating in the Salt Lake City-Provo area was $15.7 million a year.

Boyd argues that despite the nation's weakening economy, the expansion, construction and operation of new warehouses will be a major source of new investment and jobs in Utah in the years ahead. More here.