Chris Gutierrez, president of KC SmartPort, shares with Expansion Solutions Magazine why the Kansas City market continues to see warehouse and distribution growth. 

• Reshoring/Nearshoring: There is more focus on U.S. firms bringing manufacturing and distribution back to North America. Additionally, many foreign firms are considering the U.S. and the Kansas City region competitively to shorten supply chains to North American markets and lower energy costs. Even companies that still rely on imported products and foreign suppliers are adding more warehouse space to better buffer their operations against supply chain disruptions.

• Midwest Consolidation: Companies are looking to consolidate into the Midwest to reduce costs, as West Coast prices for space continue to grow substantially. According to the Colliers Industrial sector first quarter 2023 report, West Coast warehouse and distribution space, on a triple net basis, is more than double the Midwest average pricing of $6.08 per square foot. The Northeast is nearly double that of Midwest pricing.

• eCommerce & Third Party Logistics: Ongoing eCommerce growth is driving a need for more localized distribution space to facilitate next-day and same-day delivery. Third-party logistics operators are responding to this growth in eCommerce, particularly for cold storage. 

• Speed-to-Market: It is important to show companies how quickly they can start operating in the KC region. Vertical readiness with utilities on site, road infrastructure, correct zoning and spec building plans are all key speed-to-market components. 

• Regional Support System: The Kansas City region, which includes 18 counties in two states, has a unified approach to industrial business attraction. This regional effort has allowed for seamless presentation to and handling of prospects to strengthen opportunities for all partners and helps warehouse and distribution companies find the ideal location for facilities.

>> Read the full Expansion Solutions Magazine article.