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Thinking of locating your fulfillment operation in Michigan? This state is a good choice for companies looking to do business with Toronto or other areas in Canada due its location as a Canadian border state. Michigan has nine international border crossings in all. Its prime location also allows this state to ship items using freshwater ports. Michigan has 38 deep water ports. This gives Michigan a distinct advantage, since this is more ports than all the other Great Lake states have, combined.
Michigan is centrally located in the Great Lakes region. It is surrounded by Lake Superior, Lake Michigan, Lake Huron, and Lake Erie. Michigan is rich in natural resources and has vast infrastructure to support ground, rail and air transportation. The state also has a skilled workforce and friendly environment for business with low costs and taxes. All of which makes Michigan an ideal location for warehousing services.
Michigan has established infrastructure to make multi-modal transportation accessible for business throughout the Contiguous United States and Canada. When it comes to ground transportation, interstates including I-69, I-75, I-94 and I-96 run through the state. There is also a network of smaller highways to make reaching other cities easy, this network includes 26 business routes and 23 business loops that connect on both ends to their parent highway.
There is a system of railways making rail freight shipping a great option, with almost 4,000 miles of operating rail track, which handle almost 94 million tons of cargo per year. Michigan is served by four Class I railroads, the Canadian National Railway, the Canadian Pacific Railway, CSX Transportation, and the Norfolk Southern Railway. Additionally, there are several dozen short line railroads. Most of the rail service in the state is used for freight.
Shipping through air freight is made available by multiple international and regional airports including Bishop International Airport in Flint, MBS International Airport in Freeland, Kalamazoo/Battle Creek International Airport in Portage and Gerald R. Ford International Airport in Grand Rapids.
Rounding out the infrastructure are Michigan’s 38 deep-water ports. According to Great Lakes Ports and Shipping, “The U.S.-Flag fleet includes more than 60 carriers and tankers, as well as dozens of smaller tug and barge units. These vessels team up to haul upwards of 125 million tons of cargo during a typical 10-month shipping season.”
Michigan’s competitive infrastructure gives the state a clear advantage when it comes to shipping and warehousing services. It is an optimal location for a business hub. Several cities stand out in the state as top locations for warehousing services companies including Detroit, Lansing, Grand Rapids and Kalamazoo.
But location alone isn’t the only consideration when outsourcing 3PL, warehousing, fulfillment, and shipping in Michigan. At WarehousingAndFulfillment.com, we specialize in painlessly matching you with the best fulfillment centers in Michigan for your company’s specific needs. In addition to location, we match businesses based upon:
And performance metrics aren’t the only consideration we take into mind. We also match you with companies that are best suited for the products you sell, the channels you sell through, the technologies you use, and any other requirements necessary. Get in touch with your ideal matches today – fill out a request for quotes or call us for FREE matches and quotes!
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Michigan has an infrastructure that makes it easy for businesses to reach their markets. There are several major interstates that run through the state including I-69 and I-94. There are also “26 business routes that connect cities bypassed by the Interstates; 23 are business loops that connect on both ends to their parent highway, and three are business spurs that connect on only one end. I-496 has the Capitol Loop as its connection to the Michigan State Capitol in downtown Lansing.” The state also has almost 4,000 miles of operating rail track which handle almost 94 million tons of cargo per year. There are several major airports including Bishop International Airport in Flint, MBS International Airport in Freeland, Kalamazoo/Battle Creek International Airport in Portage and Gerald R. Ford International Airport in Grand Rapids. Finally, since Michigan is surrounded by the Great Lakes, there are over three dozen commercial ports all around the state.
Tourism is also a thriving industry in the state, with attractions during every season. Popular destinations include Muskegon County, Manistee County, the Great Lakes Bay Region, and Mackinac Island. Tourists spend $17.2 billion per year in the state, supporting 193,000 tourism jobs. Michigan’s tourism website ranks among the busiest in the nation.
Michigan is a strong state for business and community. The people and businesses of Michigan have changed the world numerous times. The state is diversifying its economy and has become a center for innovation and creativity. When your company is looking for a business hub, to store and transport goods throughout the United States and beyond, Michigan is an ideal location.
When your business is looking to store and transport goods in the United States 3PL Warehouse Companies in Michigan provide an advantage economically and in location. The state of Michigan consists of two peninsulas in the Great Lakes region. Michigan in known world-wide for its role in the Automotive Industry but there are also many other industries that thrive in the state. Michigan continues to be a center for research and development, growth, and new technology. With low costs for business and a robust infrastructure Michigan makes an ideal hub for business.
Michigan officially became a state on January 26, 1837. The state is divided into two distinct peninsulas, known as the Upper and Lower. The state is surrounded by four of the five Great Lakes: Lake Superior, Lake Michigan, Lake Huron, and Lake Erie. Therefore, Michigan in nicknamed the “Great Lake State.” The Lower peninsula is where most of the population of Michigan lives. It has become a center for technology and manufacturing. The Upper peninsula is a rich source of lumber, iron, and copper as well as a popular tourist destination.
In the early 20th century, the city of Detroit was at the center of the birth of the automotive industry. People such as Ransom E. Olds, John and Horace Dodge, Henry Leland, David Dunbar Buick, Henry Joy, Charles King, and Henry Ford brought about this revolution which would change Michigan, America, and the world. Henry Ford developed the moving assembly line, transforming manufacturing. The strong economy based on manufacturing attracted many immigrants to Detroit. This diversity helped shape the city culturally and even led to popular music trends like Motown. During this time Grand Rapids was also growing. It became the home of five of the world’s leading office furniture companies.
Michigan remains a large and influential state. It is the leading auto-producing state in the United States. Michigan is the tenth most populated state. It is ranked third in research and development expenditures. Most of the $1.8 billion in federal academic research dollars goes to the University Research Corridor, which is alliance between Michigan State University, the University of Michigan, and Wayne State University. Forbes ranks Michigan second is overall economic climate. Michigan has proven to be a resilient state, the economy has surged since 2009. The state has seen a restructure of taxes and incentives making it even more business friendly.
This state may be a more affordable location than you think. Though formerly an expensive place to do business, Michigan is now implementing new tax laws and other improvements that are quickly lowering the cost of doing business. Lower costs mean more reasonable fulfillment fees. Furthermore, what was once a booming manufacturing hub due to the automotive industry is now an economical labor pool of ready to serve fulfillment service providers.
Everyone knows about Detroit, the largest city in the state. One of the great cities of innovation, both in the auto industry and music (Motown), you won’t have trouble finding fulfillment centers in the area. More companies are utilizing Detroit as a central point for their nationwide distribution program, including U.S. manufacturers and retailers that ship products all throughout the United States. Detroit is close to other large hubs, such as Chicago, and is also in close proximity to large population centers in the Eastern U.S.
Detroit is located on the eastern side of the state. It is known worldwide for automotive manufacturing, but there is much more to the city. Major industries include manufacturing, technology, bioscience, finance, and health care. The city is also a cultural hub.
Forbes notes that, “Detroit is home to a number of firms pursuing emerging technologies including biotechnology, nanotechnology, information technology, and hydrogen fuel cell development.” Universities in Detroit include Wayne State University and the College for Creative Studies. Inc.com points out that in spite of the decline in the auto industry Detroit will continue to succeed, “With tons of open space, inexpensive rent, and legions of talented workers, the city was – and is – ripe for the kind of fresh and innovative thinking that drives new business.” There are low costs for business in the city with inexpensive real-estate and large corporations working together to create a vibrant and thriving city. The cost of living is well below the national average and tax incentives for businesses make it an attractive location.
Detroit is an important port on the Detroit River, which is a strait that connects the Great Lakes system to the Saint Lawrence Seaway. Due to its proximity to Canada and infrastructure including highways, rail systems, ports and airports it is an important transportation and trade hub. Detroit has three international border crossings, the Ambassador Bridge, Detroit–Windsor Tunnel and Michigan Central Railway Tunnel, which link the city to Windsor, Ontario. The Ambassador Bridge is the single busiest border crossing in North America, carrying 27% of the total trade between the U.S. and Canada. A new Detroit–Windsor bridge is expected to be completed by 2020. Detroit also has a major airport, the Detroit Metropolitan Airport. The city is the second-largest economic region in the Midwest.
Lansing is the capital of Michigan; it is centrally located in the Lower Peninsula. Lansing has roughly 114,000 people and isn’t far away from key cities, including Detroit.
Major industries in the area include technology, health care and insurance. It is home to several colleges and universities including three medical schools, Thomas M. Cooley Law School, and Michigan State. Hi-tech manufacturing is a growing industry in the area. Low taxes, cost for business and cost of living are positive for companies developing in the area. Lansing is an important center for education, culture, government, commerce, and industry in Michigan.
Ground transportation and freight trucking are aided by an extensive highway system including I-69, I-96 and US-127. Freight shipping by rail is made easy through several railroads including Canadian National Railway, CSX Transportation, and the Jackson & Lansing Railroad. Commercial services are available through the Capital Region International Airport.
Grand Rapids is the largest city in West Michigan; it is on the Grand River about 30 miles east of Lake Michigan. The city has long been a manufacturing hub, particularly furniture manufacturing. Today, Grand Rapids is diverse economically. Industries include health care, bioscience, information technology, automotive, aviation, and consumer goods manufacturing. Residents of the city can enjoy art galleries, theater, eateries, and several festivals throughout the year.
There are world-class medical facilities such as Spectrum Health Heart Center and Butterworth Hospital downtown. Forbes has Grand Rapids on several lists including number one on Best Cities For Raising a Family, 15 U.S. Cities’ Emerging Downtowns, and number 24 on Best Places for Business and Careers. Forbes also highlights strong investment in the city saying, “Investments have yielded the Van Andel Arena, the new $60 million home of the Grand Rapids Museum, a $220 million convention center, and $1 billion in new hospitals and new headquarters for Michigan State University’s College of Human Medicine.” They also rank Grand Rapids 9th in Job Growth. The city is set to continue to grow for years to come with a strong business sector and thriving economy.
Freight trucking is available in the area with highways including I-96, I-196 and US-131. CSX, the Grand Elk Railroad, Marquette Rail, and the Grand Rapids Eastern Railroad provide freight service by rail. Commercial air services are available through Gerald R. Ford International Airport.
The city of Kalamazoo is in the southwest part of Michigan. It sits 150 miles from Chicago to the west and Detroit to the east. Kalamazoo has a diverse economy with major industries including education, health care and life sciences, research development and industrial design. Residents also enjoy the Kalamazoo Mall, which is an outdoor pedestrian shopping mall.
Several highways run through the area including I-94, US-131 and M-96. The Grand Elk Railroad provides freight by rail. Air freight is available through the Kalamazoo/Battle Creek International Airport.
Ann Arbor is another important city in Michigan. The city is home to the University of Michigan. Livability ranks Ann Arbor among the Best Places to Live highlighting that, “Ann Arbor has small town traits but big city appeal. Packed with bookstores, art galleries, performance venues and restaurants, Ann Arbor’s annual festivals and events bring the community together and allow visitors to experience what residents live with.” The largest industries include healthcare and bioscience. There are several large corporations with manufacturing and headquarters in the city including the Toyota Technical Center, Ford Motor Company, JAC Products and Terumo. Ann Arbor is a rapidly growing city with many new companies moving in and existing business expanding and making new investments.
Just west of Detroit is Ann Arbor with a population of 113,934. With a slightly lower population, you can find just as many fulfillment centers without the intense competition like in Detroit. Sometimes, when companies are looking outside of Detroit, they might also consider Flint, as it does offer some options for fulfillment services companies.
Choosing the best 3PL warehouse in Michigan is a complex decision. Below is summary information about Michigan population, number of warehouses, and taxes so that you can make a more informed decision about whether the state offers your company the best fulfillment services potential.
|Population||10.08 million (2020)|
|Warehouses in State||9,184 (from reonomy)|
|Amazon Warehouses in State||5|
|Average Warehouse Labor Rate||$20.35/hr|
|Sales Tax Rate||6%|
|Property Tax Rate||1.64%|
|Personal Tax Rate||4.25%|
|Corporate Tax Rate||6%|
To get an idea of the types of companies that operate in Michigan, check out the top 10 largest companies in the state.
|Business Name||Number of Employees|
|Ford Motor Company||199,000 employees|
|General Motors||173,000 employees|
|The Dow Chemical Company||54,000 employees|
|Key Safety Systems||50,000 employees|
|Cooper-Standard Automotive||32,000 employees|
The below table gives a high-level idea of what average rates might look like in Michigan for fulfillment services, based upon surveys of outsourced warehousing companies throughout the US.
|Pricing Type||National Average|
|B2C Order Fulfillment Fee Per Single Item Order||$3.13|
|B2B Order Fulfillment Fee Per Single Item Order||$4.33|
|Pallet storage fee per pallet per month||$16.21|
Michigan offers several advantages including location, easy access to the Contiguous United States and Canada, low costs for business, job growth and an expansive multi-modal transportation network. Tax breaks are also available to help companies moving to the state. Michigan is continuing to grow and expand with new opportunities and investment in infrastructure and industry.
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