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Why Arizona Is Becoming a Logistics Hub

Strategic location and investment turn desert state into freight giant.

  • Business Law & Economics
  • Product Distribution
  • Operations Management
  • Supply & Demand
  • Supply Chains
  • Chapter 1 Taking Risks & Making Profits
  • Chapter 2 Economics
  • Chapter 3 Globalization
  • Chapter 9 Production & Operations Management
  • Chapter 14 Product & Price
  • Chapter 15 Distribution
  • Video
  • Blog
  • Understanding Business
  • Higher Education

On a stretch of highway near Phoenix, property developers have constructed dozens of industrial warehouses with millions of square feet in storage. These enormous Arizona facilities are attracting big companies like Amazon, UPS, Walmart, and many more tenants that are looking to avoid California supply chain bottlenecks. This video looks at the reasons why some businesses are starting to center their logistical operations in the American Southwest.

Questions:

  1. What are the benefits and drawbacks for companies that use storage facilities located in Arizona rather than California?
  2. Do you think companies should place their warehouses closer to ports or closer to consumers? Which option has more potential advantages?
Author: NickelsMcHughMcHugh