Central PA, a Distribution Hotspot
Central PA, a
Distribution Hotspot
here? There are several factors
actually, some that may be very
obvious, and some that may
surprise you.
WHAT IS THE KEY FACTOR
IN PICKING A SITE FOR A
DISTRIBUTION CENTER?
717.854.5357 | www.RockRealEstate.net
The news of new distribution
centers making their way into
Central Pennsylvania is not new
news. In fact, Central Pennsylvania
has been known as a strong area
for distribution for quite some
time. The question is, why? What
makes this area so special and
unique that large companies such
as Amazon, Federal-Mogul,Target,
Nordstrom and others would want
to locate their distribution centers
This is probably the most
obvious answer transportation networks.
Transportation networks play a
huge role in the location of
distribution centers, especially
in today's day and age of
fulfilling the consumer's need
of instant gratification.
Distribution centers will want
to be within a reasonable
driving distance to major
highways and interstates, rail,
airports, and seaports. Strong
transportation networks that
not only reach the farthest
distances, but those that reach
large amounts of businesses
and population will help to
drive down the cost of
distributing the product.
Most notable, Central
Pennsylvania has a strong
transportation network. The
highway system especially, that is
accessible in the area is in-part
what makes Central Pennsylvania
so attractive for distribution
centers. Major roadways such as
I-83, I-81, the Pennsylvania
Turnpike (I-76), Route 30, Route
15, Route 222, and Route 322
are all connection points that
become gateways into some of
the north eastern United States's
most populated places. In a four
hour drive-time from most points
in Central Pennsylvania, you can
reach areas such as Baltimore,
Washington, DC, Richmond,
Pittsburgh, Philadelphia,
Delaware, New Jersey, and New
York. Access to these markets,
gains you access to a number of
major airports and seaports.
Central PA, a Distribution Hotspot
WHERE ARE THE “DISTRIBUTION HOTSPOTS” IN CENTRAL PA?
HOW DOES SHREWSBURY STACK UP TO OTHER U.S. MARKETS?
If you were asked to look at the map below and guess from which of these 23 points along Central
Pennsylvania highways you could reach the most population within a 1 hour drive-time, which would you
choose?
As previously discussed, the most notable factor of the Central Pennsylvania market is the roadway connectivity, but
also its link to other major markets. Central Pennsylvania is literally sandwiched between Philadelphia, Pittsburgh, and
Baltimore with access to markets such as Washington, DC, Virginia, New York, New Jersey, Delaware, etc. Taking these
factors into consideration, we wanted to know how strong Shrewsbury is exactly when compared with other markets
across the United States. To test this question, we picked 20 markets across the United States for comparison
(NOTE: these markets were chosen based off of current distribution activity as well as their location to other major
markets):
The correct answer is: Shrewsbury, York County
In this exercise, we took each of these points and
applied a 4 hour drive-time (a 4 hour drive-time
measures the amount of distance that can be covered
in a one day time period - 4 hours to drive to a
destination; 4 hours to drive back home) and calculated
the total population within each of the drive-times for
comparison to the same drive-time around Shrewsbury.
Overall out of these markets, Shrewsbury ranked #2
behind Albany, New York.Within a 4 hour drive-time of
Shrewsbury, you can reach just under 42 million people
(81.1% higher than the average for this data set).
Albany only outranks Shrewsbury by less than 500,000
people.
Within a 1 hour drive-time of Shrewsbury, you can reach just
under 3.5 million people and 138,000 businesses (that's
83.5% more population than the average for this data set).
Shrewsbury ranks so high because within the drive-time, you
can reach all of York, Harrisburg, and into Baltimore. In fact,
you could consider the southern portion of I-83 in York County
to be a "distribution hotspot" based solely on these findings.
The second highest point in terms of total population reached
within a 1 hour drive-time is located about 12 miles north in
South York at the intersection of I-83 and Route 74 (South
Queen Street). Although it's about 400,000 people less than
Shrewsbury's drive-time, you are still able to reach over 3
million people within a 1 hour drive-time of this point.
Another key-factor for distribution centers is
the strength of the current market and the
available employment base. Not only does
Shrewsbury dominate the Central
Pennsylvania markets by the total population
and businesses reached within a 1 hour
drive-time, but it also leads the others in total
Warehouse and Transportation businesses
and employees reached within the same
area. In the 1 hour drive-time from
Shrewsbury, there are 3,059 Warehouse and
Transportation businesses (82.2% higher
than the average for the data set) and
48,613 Warehouse and Transportation
employees (52.6% higher than the average
for this set).
Central PA, a Distribution Hotspot
Central PA, a
Distribution Hotspot
here? There are several factors
actually, some that may be very
obvious, and some that may
surprise you.
WHAT IS THE KEY FACTOR
IN PICKING A SITE FOR A
DISTRIBUTION CENTER?
717.854.5357 | www.RockRealEstate.net
The news of new distribution
centers making their way into
Central Pennsylvania is not new
news. In fact, Central Pennsylvania
has been known as a strong area
for distribution for quite some
time. The question is, why? What
makes this area so special and
unique that large companies such
as Amazon, Federal-Mogul,Target,
Nordstrom and others would want
to locate their distribution centers
This is probably the most
obvious answer transportation networks.
Transportation networks play a
huge role in the location of
distribution centers, especially
in today's day and age of
fulfilling the consumer's need
of instant gratification.
Distribution centers will want
to be within a reasonable
driving distance to major
highways and interstates, rail,
airports, and seaports. Strong
transportation networks that
not only reach the farthest
distances, but those that reach
large amounts of businesses
and population will help to
drive down the cost of
distributing the product.
Most notable, Central
Pennsylvania has a strong
transportation network. The
highway system especially, that is
accessible in the area is in-part
what makes Central Pennsylvania
so attractive for distribution
centers. Major roadways such as
I-83, I-81, the Pennsylvania
Turnpike (I-76), Route 30, Route
15, Route 222, and Route 322
are all connection points that
become gateways into some of
the north eastern United States's
most populated places. In a four
hour drive-time from most points
in Central Pennsylvania, you can
reach areas such as Baltimore,
Washington, DC, Richmond,
Pittsburgh, Philadelphia,
Delaware, New Jersey, and New
York. Access to these markets,
gains you access to a number of
major airports and seaports.