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Supply success in
One of the Nation’s Largest E-Commerce, Distribution & Logistics Hubs
Greater Phoenix is a top market in the nation to locate, relocate or expand your e-commerce, distribution and logistics operations. Many of the largest e-commerce firms have facilities in Greater Phoenix.
Greater Phoenix offers as much as 20% lower cost of living compared to competitor markets along with home costs as much as 37% more affordable. This e-commerce friendly region is also home to the largest municipal park in the nation.
With Sky Harbor International Airport, Greater Phoenix serves 10 major freight carriers and offers planned highways throughout the region for easy access to Interstates 8, 10, 17 and 40. These are key reasons why so many businesses are looking to relocate their distribution and logistics operations.
With real estate that is more affordable than Las Vegas and Riverside, Greater Phoenix offers up to 12% less expensive operating costs than in competitor markets.
Greater Phoenix focuses on university alignment and partnerships to cultivate highly-qualified college graduates and workforce talent. ASU boasts the #2 Supply Chain Management Program in the country and the region offers a larger workforce than Las Vegas and Reno combined.
This region is home to the largest full-truckload carrier in the nation. With major firms like Amazon, REI, Chewy and UPS, Greater Phoenix is one of the top cities for e-commerce, distribution and logistics.
Greater Phoenix Talent Pipeline
Greater Phoenix is known for its robust pipeline of producing dedicated graduates and professionals in the fields of e-commerce, distribution, logistics, procurement, supply management, operations management, and supply chain performance optimization. Arizona State University was recently ranked 2nd for Best Supply Chain Management Programs and also named the #1 Most Innovative School in 2016, 2017, 2018 and 2019 by U.S. News.
Internet Edge Supply Chain Lab
The lab’s mission is to create industry-inspired research that advances understanding of innovations, challenges, and new possibilities involving Supply Chain Management at the boundary shared by the Internet and the physical world.
The lab is led by Elliot Rabinovich and Dale Rogers and is currently working on the following projects:
- Last-mile fulfillment in omnichannel retailing with Walmart
- Merchandise variety in omnichannel retailing with Relay Foods
- Role of online retailing in promoting local grocery supply chains with USDA
- Management practices in warehouse platform systems with JDA Software and FLEXE
- Social media use during humanitarian disaster events with WeLink
- IoT Case Study: The IoT Supply Chain with Intel
Number of Graduates in Supply Chain Management and Logistics by Region
The chart below displays the number of graduates in Supply Chain Management and Logistics degree programs by region during the 2017-2018 school year.
Major Carrier Locations
The map below shows freight and sorting locations for major shipping firms in Greater Phoenix. As can be seen below, FedEx and UPS have substantial operations in Greater Phoenix, including the development of a new distribution center in Goodyear, near Interstate 10 and Loop 303.
Notable Logistics Firms Headquartered in Greater Phoenix
Many leading national e-commerce, distribution, and logistics companies have substantial operations in Greater Phoenix. Below are a few of the top companies that have a headquarters in the region.
Greater Phoenix is home to a dynamic and growing e-commerce ecosystem. In addition to many national leaders headquartered in the region, a number of companies have a major distribution and logistics presence here.
Median wages in Metro Phoenix are significantly lower than in peer markets like Las Vegas, Reno, and Riverside.
Scroll to the side to see how Greater Phoenix stacks up against other cities in terms of median annual wages for e-commerce, distribution and logistics occupations.
|General and Operations Managers||$91,208||$108,098||$95,846||$101,733|
|Transportation, Storage and Distribution Managers||$80,350||$85,925||$87,027||$87,173|
|Shipping, Receiving and Traffic Clerks||$31,845||$31,221||$36,130||$33,259|
|Stock Clerks and Order Fillers||$26,478||$26,187||$29,307||$26,894|
|Packaging and Filling Machine Operators and Tenders||$26,998||$26,770||$28,683||$26,062|
|First-Line Supervisors of Transportation and Material Moving Workers, Except Aircraft Cargo Handling Supervisors||$53,310||$53,498||$55,203||$56,638|
|Heavy and Tractor-Trailer Truck Drivers||$43,243||$46,363||$47,694||$45,490|
|Light Truck or Delivery Services Drivers||$34,902||$34,923||$35,464||$37,211|
|Industrial Truck and Tractor Operators||$35,339||$34,861||$37,440||$34,382|
|Laborers and Freight, Stock, and Material Movers, Hand||$28,454||$27,310||$29,931||$29,411|
|Packers and Packagers, Hand||$24,274||$20,904||$27,019||$26,042|
The Annual Business Operating Cost analysis below has been prepared using the following parameters as an estimate for e-commerce, distribution, and logistics operations in competitor markets. Component and custom analyses to match your company’s operations can be provided upon request if you’re looking to relocate or start your e-commerce, distribution, or logistics operations in Greater Phoenix.
- $10,000,000 personal property investment
- 120,000 square foot Industrial Warehouse, Lease
- Utilities (per month):
- Electric: 1,000W, 200,000KWh
- Water/Wastewater: 3,000cf, 5/8 meter
- 250 jobs (Bureau of Labor Statistics equivalent occupations)
|Material Moving Workers, All Other||100|
|Laborers and Material Movers, Hand||100|
|Packaging and Filling Machine Operators||30|
|First-Line Supervisors of Laborers and Material Movers||10|
|Shipping, Receiving, and Traffic Clerks||5|
|Transportation, Storage, and Distribution Managers||1|
|General and Operations Managers||1|
Total Operating Cost by Region
Parks and Recreation
Greater Phoenix is home to hundreds of parks and hundreds of miles of hiking, biking, and walking trails. The Greater Phoenix region is home to the largest municipal park in the United States, South Mountain Park. South Mountain Park covers more than 16,000 acres. Other large parks in the region include the White Tank Mountain Regional Park, Camelback Mountain, Piestewa Peak, and the Superstition Mountains, Notable walking trails in the region include the canal system, Tempe Town Lake, the Greenbelt, and Papago Park.
Commute Times and Light Rail
Many companies that have recently expanded into the region have commented on the ease of access to the workforce and the accessibility of the market. An important aspect of this is the region’s commute times, which are significantly shorter than competitor markets, enabling your workforce to spend more time enjoying their lifestyle and less time in traffic. The region has a modern freeway system and an expanding light rail ensuring that there is a robust supply of talent no matter where a business is located.
Companies in Greater Phoenix
- Amazon Services
- Kudelski Security
Want to see a full list of companies in Greater Phoenix? Download the complete report.