Top 10 Locations for Outsourced Warehousing and Fulfillment Services

To have a successful business, every step in the logistics process needs to be well-executed. One important step in the logistics process is warehousing and fulfillment and establishing this service in a strategic location is essential for your business now more than ever. In fact, one of the most common questions on Google is “where are warehousing fulfillment companies near me?”

Ecommerce is booming, and customers want their products delivered quickly. Because of this high demand, finding space to hold and distribute your goods is competitive. Considering factors such as gas prices, backed-up containers, and infrastructure, and it’s clear how important it is to strategically locate your warehousing and logistics when choosing the best fulfillment company for your business.

We’ve researched the top 10 locations for outsourced warehousing and fulfillment so that you can make the best logistics decision for your business.

1.   Southern California

First on our list is sunny Southern California. 3PL warehousing and fulfillment companies in California are some of the most hotly sought after in the entire country. Los Angeles is a tourism hot spot with tens of millions visiting the city every year. It is also home to almost four million people and close to the Port of Long Beach, so it makes sense that business owners would want to locate their warehousing and fulfillment in this area. However, due to lack of space and high labor costs, most fulfillment companies are in the areas surrounding Los Angeles.

Since the Port of Long Beach is the highest volume port in the United States, it’s ideal for businesses receiving inbound freight from overseas to locate their warehousing space near the port. Choosing a warehousing and distribution space in Long Beach would cut down on the costs of moving freight from the port. However, most of the logistics focus in this area is on receiving and distributing containers from the port. A 3PL Los Angeles is probably one of the most popular areas in the country, but San Bernardino and the Inland Empire are further from the Los Angeles metropolitan area, so warehouse space and labor costs are cheaper, but transporting freight from the port is more expensive. Currently, California warehousing has seen some issues with supply chain and port congestion, so you may want to consider some short-term alternatives until these issues are resolved.

2.   New Jersey

Second on the list is the diner capital of the world: New Jersey. While this northeastern state is small in area, its proximity to the densely populated New York makes it an appealing option to business owners for outsourced warehousing and fulfillment. In fact, many businesses avoid choosing a warehouse in New York in an attempt to lower costs by using a company in neighboring New Jersey.

There are many fulfillment centers and fulfillment companies in New Jersey with transportation options available throughout the state, allowing you to ship your goods quicker and further if needed. According to the New Jersey Railroad Association, there are over 1000 miles of railway tracks from 17 freight railroads operating within the state, and several interstates connect New Jersey to other parts of the country. Finding a fulfillment center in New Jersey also gives you access to some of the largest and busiest ports in the northeast United States, such as the Port of Elizabeth and the Port of Newark. It also costs much less for labor and storage space than in New York.

Newark, New Jersey has a population of almost 300,000 and is just a few miles away from Manhattan. Many means of transportation are accessible in Newark, and more than 30 airlines operate flights out of Newark Liberty International Airport. Other viable locations in northern New Jersey are Jersey City, the second-largest city in the state, and Elizabeth, which are both near New York City and have great shipping and warehousing options available. For all of these reasons, New Jersey warehouses, fulfillment centers and 3PLs are among the most sought after in the US.

3.   Dallas, Texas

Two cities made the top 10 list in the state of Texas, showing the overall popularity of the centrally located state for logistics operations. In fact, it’s difficult to imagine a better, more centrally located state than utilizing a top fulfillment company in Texas.

According to the 2020 Census Bureau, about 7.6 million people live in the Dallas/Fort Worth area, so it makes a lot of sense that Dallas is a top location for warehousing and fulfillment. Dallas is centrally located within the state, and it is a midpoint between Los Angeles, Toronto, New York City, and Mexico City. It has two airports: DFW and Dallas Love Field. USPS, UPS, FedEx, and DHL all service Dallas, and over 90% of the United States can be reached from Dallas in a maximum of two days. With a vast logistics network and over ⅔ of all fulfillment services in the state located here, you’ll have plenty of fulfillment options to choose from in Dallas.

4.   Houston, Texas

They say everything’s bigger in Texas, and that is true about this state’s landmass. Texas is the second-largest state in the U.S., covering 268,597 square miles, which makes shipping goods quickly across the state difficult. Texas is also centrally located relative to the rest of the country and has a pro-business economy with lots of focus on economic development, so locating your warehousing and fulfillment services in Texas is appealing. The low tax burdens and lack of personal and corporate income tax are a plus as well.

Houston is the biggest city in Texas in both square miles and population. Houston is located near the Gulf of Mexico and houses the 50-mile-long Port of Houston. The port is highly ranked in terms of domestic and international trade, has an impressive financial infrastructure and skilled workforce, and is relatively close to other major cities in the South. For all of these reasons and more, using a Houston Warehousing Service is a great bet.

5.   Illinois

Illinois, specifically the Chicago area, is another excellent location for 3PL companies. Chicago is the 3rd most populated city in America and home to a wide range of industries. Many major companies are headquartered in Chicago, and the city also provides incentives to small businesses.

Many means of transportation are available in and out of the city, making it an advantageous location for fulfillment services. Seven main interstate highways and six Class I railroads run through Chicago, and two international airports are in the city as well. The Port of Chicago, located on Lake Michigan, has an immense amount of storage space and convenient truck and rail access. Chicago is also a leader in technology, so fulfillment services here will likely use leading software, which ensures maximum efficiency.

6.   Florida

The Sunshine State is widely known for being a tourism hub, with high volumes of people flocking to the many beaches and Disney World every year. However, it’s an ideal location for Florida warehouses and 3PL fulfillment centers as well. Surrounded by the Atlantic and the Gulf of Mexico, Florida has access to Latin America, Central America, and the Caribbean. Miami, specifically, is a high-demand spot for warehousing and fulfillment. Miami has a population of over 450,000 people, and the Port of Miami is known as the “Cargo Gateway of the Americas.” The port has a wide global reach, which of course makes it an advantageous location for logistics services. Miami warehouses and fulfillment centers are the go-to place for Latin American distribution as well as importers from the same area.

7.   Nevada

Home to the Hoover Dam and known mostly for its nightlife, casinos, and miles of desert, Nevada is an excellent place for warehousing and fulfillment. Its proximity to the West Coast, stellar business tax climate, and affordability compared to California make it an attractive choice to locate storage and distribution services. Many interstates run throughout Nevada and provide easy access to California. Warehousing in Las Vegas is sought after because it’s directly connected to Los Angeles and surrounding areas by I-5, and it’s near Arizona and Utah. However, Reno is a great option as well because finding warehouse space is not as competitive, and it has an international airport and a mild climate. Not to mention, all major West Coast cities are within 800 miles of Reno.

8.   Georgia

Georgia might be known for peaches and pecans, but it is also a great spot for logistics services. The Savannah and Charleston ports allow for the accessible reception of inbound shipments. The Georgia Port Authority has committed to continually improving sustainability in port operations, so it’s also an ideal location for those who are environmentally conscious.

Atlanta is a warehouse hub for many industries, and several colleges, sports teams, and major corporations are in the city. Located in a sort of middle location to the rest of the South, Atlanta is convenient for distributing to the Carolinas, Alabama, Florida, and of course, the rest of Georgia. Many major railways and a few major highways run through Atlanta, most notable of which is I-285.

9.   Pennsylvania

The next top location on our list is a northeastern state that is rich in American history. Many people know Pennsylvania for being the site of the signing of the Declaration of Independence, but it is also home to many industries such as farming, mining, publishing. It’s a central point in the northeast and provides access to the Midwest and southern states as well. There are six ports in Pennsylvania. One of these ports is located on Lake Erie, which lowers the cost of transporting inbound shipments to your warehouse. There are also many railroads and highways for convenient transport. Philadelphia is attractive to business owners looking for warehousing and logistics services because the costs of space and labor are much cheaper than in New York City.

The top cities in Pennsylvania for logistics services are the Philadelphia and Allentown areas. Allentown is close to Philadelphia, and it has great programs to attract businesses to the city. While it’s not in Pennsylvania, it is worth mentioning that the Baltimore area a bit south is a good alternative to avoid the current freight issues in Pennsylvania. Baltimore has a high population density and the booming Port of Baltimore.

10.   Missouri

St. Louis is a strategic place to locate your warehousing and fulfillment services because it’s in a central location relative to the rest of the country and you can ship your goods anywhere in the U.S. in four days maximum. St. Louis has an international airport, a port on the Mississippi River, and connections to the Illinois and Missouri rivers. Access to the West Coast and Mexico by railroad and the meeting of many interstate highways in St. Louis make this city an especially attractive place for outsourced warehousing and fulfillment since the cheapest means of shipping is ground shipping.

Bonus – Bi-coastal location

Choosing a bi-coastal fulfillment warehouse is a strategic choice for logistics. By finding a location that gives you access to both the East and West coasts, you can reach the entire country quicker and expedite shipping and transit times. This cuts delivery costs and provides better customer satisfaction. Oftentimes, companies with choose a 3PL warehouse with a west coast location in California or Nevada, and an east coast location in either the tri-state area, Pennsylvania, Virginia, or the Carolinas.

Now that you know the best locations, you can make a well-informed decision for your business’s warehousing and fulfillment location. Make sure to also consider how you want to transport freight and deliveries, where your customers are located, and where you’re receiving and sending imports and exports. Finding reputable and reliable warehousing and fulfillment centers in your ideal location is the next step. Contact us and we can help you get matched with the best 3PL for your company. Find the best fulfillment pricing today!