where to set up distribution hub in USA?

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Rachel @ Grant Fidelity

where to set up distribution hub in USA?
« on: 12 Dec 2009, 11:53 pm »
Not sure this is the right place to post the questions... if moderator sees inappropriate, please move to right section for me 

Grant Fidelity is considering to set up a USA distribution hub on the west side of the country in 2010. Since we are now in Canada, I would like to hear USA forum members' suggestions...

Following factors need to be considered:

- close to major city or airport to ship and receive goods
- prefer no further east than Colorado
- business friendly state tax law etc..
- friendly people with multi-culture
- real estate is reasonably priced and property tax is reasonable
- nice weather.... no more shoveling now like we have to in Canada! 
- convenient for distributing products to rest of USA

Am I too demanding or only heaven meets all these criteria?  I hope not... your suggestions are mostly appreciated.

Best,
Rachel @ Grant Fidelity

arthurs

Re: where to set up distribution hub in USA?
« Reply #1 on: 13 Dec 2009, 12:03 am »
Rachel, I am in the distribution business and would be happy to help you with this.  I'll be at CES, maybe we could meet up there?

Carl V

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Re: where to set up distribution hub in USA?
« Reply #2 on: 13 Dec 2009, 12:56 am »
Reno Nevada....or Sparks. (same area)
That's where I had a warehouse & Distribution point.
Rail, OTR frieght & Air Freight.  It has most of what you
asked for in your post.

*Scotty*

Re: where to set up distribution hub in USA?
« Reply #3 on: 13 Dec 2009, 02:12 am »
It might be wisest to hold off on any decision of this nature until the impact of pending US legislation on small businesses can be thoroughly evaluated. Also the fiscal solvency of prospective states will determine just how business friendly their tax structure will remain in the future. 
Scotty

Rachel @ Grant Fidelity

Re: where to set up distribution hub in USA?
« Reply #4 on: 13 Dec 2009, 05:10 am »
Rachel, I am in the distribution business and would be happy to help you with this.  I'll be at CES, maybe we could meet up there?

we will be at Venetian 29328. See you there :)

TheChairGuy

Re: where to set up distribution hub in USA?
« Reply #5 on: 13 Dec 2009, 04:00 pm »
Rachel/Grant,

(Southern) Nevada is warm, dry and only a 4+ hour drive from the US's largest port, Long Beach/Los Angeles.  Las Vegas is sorta' the Los Angeles of the desert 8)

So, if you are bringing product in via truck from port, it's less expensive here than living further West (there are three major ports in the Western US - LB/LA, Oakland/San Fran and SeaTac Seattle/Tacoma)

If you're still at a distribution level where you are flying goods in, then more options are open based on inland freight costs alone.

As well, Nevada has one of the friendliest (current) tax structures in the US...0% tax rate on personal or business income (thanks to gaming revenues and visitors at hotels and restaurants that mostly pay the state tab). 

I think it's only $200 a year to domicile your corporation in Nevada, too (fairly inexpensive overall).  It is incredibly friendly to corporations - the state of Nevada has never turned over business records to California or even the IRS/Internal Revenue Service.  I believe it is still a 'right to work' state so employment laws are looser than many states - giving you greater flexibility.

If you do incorporate in the US, you don't have to live in Nevada to have many advantages of incorporating there.  You can choose a 'Resident Agent' that will effectively be your Nevada address and you are then subject to Nevada corporate and taxes for your business. They will set up your corporation, even establish a bank account for you and act as your legal residence.

Scotty, above, does (correctly) mention about current state finances and future tax changes...Nevada has the highest rate of foreclosure in the US and gaming revenues are way down.  So, they may HAVE TO enact some income taxes to plug gaps (tho I have heard no talk of it)

Good luck on your move south and upcoming CES :thumb: 

John


Rachel @ Grant Fidelity

Re: where to set up distribution hub in USA?
« Reply #6 on: 13 Dec 2009, 09:37 pm »
Rachel/Grant,

(Southern) Nevada is warm, dry and only a 4+ hour drive from the US's largest port, Long Beach/Los Angeles.  Las Vegas is sorta' the Los Angeles of the desert 8)


This is comforting to know... :) I personally do not like Vegas that much as it is so commercialized and not suite my lifestyle. I only have been there once but will be there again in Jan - let's see how I feel this time. If Nevada is a good choice, I may look into cities other than Vegas. Any particular suggestion of other city in NV is appreciated.

Do not know much about New Mexico - only seen a few TV shows about the art district :) Houses there look very interesting and I am a person who needs sunshine. Seattle type of weather doesn't work for me very well   :cry:

Thanks for everyone's suggestion... I will keep listening and do further research.

Best,
Rachel

AllynW

Re: where to set up distribution hub in USA?
« Reply #7 on: 14 Dec 2009, 12:35 pm »
Nevada, The Strip is not Las Vegas.  It is the local business district.  The communities surrounding Las Vegas ie: Henderson and Boulder City are close yet far enough away to feel removed from the big city.

drphoto

Re: where to set up distribution hub in USA?
« Reply #8 on: 16 Dec 2009, 05:33 am »
Why west coast only? Property is cheap here in Louisville KY and we have the main UPS air hub, which may expain why we have  distribution centers for Amazon, Zappos, and (I think) Netflix.

Good work force. Toyota put it's Camry plant here. (technically in Shelbyville, about 40 mi east of Louiville) We're not all redneck hillbillies. (although we do have our fair share!)

Thiel and Tyler loudspeakers are KY products. (Lexington and Owensboro respectively)

The weather is decent. Usually doesn't get miserably cold in the winter, at least for more than a few days at a time. It can get a bit muggy in the summer, but so does most of the east coast, which may explain your preference for the west.

 Decent cultural/arts for a small town. Quite good orchestra, opera, ballet and the fairly well known Actors Theater, which has debuted a several works that have gone on to Broadway. A lot of suprisingly good resturaunts.

Easy to get around. The worst traffic jams here are like a good day in most major cities.

Unfortunately, there are state and local taxes, but there's always incentives to lure new businesses here.


ctviggen

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Re: where to set up distribution hub in USA?
« Reply #9 on: 16 Dec 2009, 12:45 pm »
You could also choose Phoenix or Tucson, Arizona.  Some think the weather there sublime; personally, I thought it was too hot. There's a reasonable cost of living (in fact, it's a great time to buy there).  The taxes are much more reasonable than in the Northeast.  I don't know whether it has friendly people with a multi-cultural aspect.  It also can be a little bit "western". 

Mike Nomad

Re: where to set up distribution hub in USA?
« Reply #10 on: 16 Dec 2009, 02:42 pm »
Looking at this solely from a distribution standpoint, the closer to the center of the Lower 48, the better. That puts you somewhere in north-central Kansas. From a lifestyle perspective, not very fun. Shift a little east, to the Kansas City area, and you have a major UPS hub.

The other logical choice is somewhere in Texas, along the I-10 corridor. That would mean San Antonio (great town), or Houston (which includes a major container shipping port). I excluded El Paso, because it's too far west.

Living in Houston has its ups and downs, with great food and no state income tax being two things that keep me hanging around. Our state economy has not taken the pounding that others have. I can't speak to how the state laws vs. small businesses goes.

Good luck on the hunt.

StylinLP

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Re: where to set up distribution hub in USA?
« Reply #11 on: 29 Nov 2011, 10:37 pm »
Phoenix, AZ would be the best choice by far. Weather, population, taxs, property, shipping. Alot of companies from Motorola, IBM, Honeywell and alot of other industries are headquartered here. The cheapest airfares are from Sky Harbor Intl Airport to anywhere is the world. Its also 6 hours from Vegas, LA and Sandiego.

JfTM

Re: where to set up distribution hub in USA?
« Reply #12 on: 30 Nov 2011, 12:11 am »
Hi Rachel,

I was one of those who dropped into to see you at TAVES before your gear arrived.

I've done lots of business cases, including many in supply chain businesses.  Key here is what is your business model going to be, or what at this time do you think it will be.

Some considerations.

Much of your product comes from China.  Would you supply your US operation out of Canada, or bring product in directly from China?  There will be duty issues in either case.

If you will import directly from China, look into the difference in container shipping rates from POE to the various sites.  You'll likely find a significant difference.

Good Luck!