I hope everyone had a great 4th, just relaxing by the pool or the shore guys at the beach.  Right before the holiday I read the Philadelphia Inquirer business section's article about warehousing. The Eastern Pennsylvania transportation corridor has seen explosive growth due to the way products need to be delivered: quickly, safely, and inexpensively while minimizing the carbon footprint.

If your wondering what this has to do with food, I’m going to tell you. First the numbers, as Suzette Parmley states in her article.

EASTON, Pa.  –  If there was a real-life version of the video game Pac-Man, it could be playing out here, as retailers and other firms continue to gobble up land and build warehouses at an accelerating rate.

The gold rush can be summed up in one statistic: 83 percent.

That’s the rise from first-quarter 2016 to first-quarter 2017 of the warehouse square footage leased by the commercial firm CBRE Inc. in the I-78/I-81 corridor from the Lehigh Valley, north to Wilkes-Barre/Scranton, and south on I-81 to the Maryland border, according to a company report last month.

An increase from 39.4 million square feet to 72.2 million square feet from just a year ago.

I travel through that corridor often and am amazed at the growth of warehousing. The list of players moving their warehouses there is long and a lot of them are food guys. We’ll look at some of the big food companies having an impact in the area.

Amazon: First on the list would be Amazon that has huge fulfillment centers in the Lehigh Valley extending all the way out to Harrisburg. The I78 Corridor. UPS, a major carrier for Amazon, has huge warehousing facilities nearby. Looking at the numbers according to Insider Louisville:

"UPS handles about 30 percent of Amazon’s 600 million packages within the United States. That’s an estimated $1 billion a year, which, it has been reported, has grown 500 percent in 10 years. How big a hit would that be for UPS, one of Louisville’s largest local businesses, and a conduit for myriad other businesses that come to the area to be in close proximity to UPS?"

As we have pointed out in previous articles Amazon will be picking up 480  Whole Foods Locations so they can compete in the grocery delivery market.

Tyson Foods announced doubling of warehouse area in Schuylkill County, Gov. Tom Wolf praised the expansion.

"The company is investing heavily in its future in Pennsylvania with its own $59.7 million capital investment," Wolf said in a statement. "The I-81 corridor has become an extremely attractive location for food processors, and I applaud Tyson Foods for choosing to grow right here in Pennsylvania. Schuylkill County near Interstate 81. That is very close to their plant in New Holland and will let them store and deliver more efficiently and lower their transportation costs of delivering product."

Wegmans the supermarket giant in the Northeast has a major distribution center in Pottsville,PA right between I81 and I78 which they use to service their PA,NJ stores.

One of our customers is moving his distribution center to Womelsdorf, PA and will then be located just 19 miles to I78 helping them expand their reach as they continue to grow.


Issue 628 - Fatal Flaw Modernized

Olin Thompson's concept of the Fatal Flaw in Software was featured in our newsletter about thirteen years ago. Today we will modernize that article with more current information.

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