ABOUT
ABOUT
MEMPHIS ADVANTAGE
THE
The Memphis MSA comprises eight counties in three states. With an estimated 2017 population of over 1.34 million people, the MSA is the second largest metro area in Tennessee behind Nashville. According to Time magazine, the Memphis MSA is the 4th largest area for millennial 64 immigration, with an increase of 9.5% from 2010 to 2015.
Today’s consumers require delivery of goods immediately, shrinking the time horizon between shipment and delivery to intra-day. E-commerce sales grew 16% from mid-2015 to mid-2016, compared to only a 2% sales growth by bricks and mortar retailers. This rapid growth coupled with increased consumer demands have made the fulfillment needs of the “last mile” a problematic link within supply-chain logistics. Solving this is the new hub and spoke distribution model. Memphis will be a hub for the southeastern United States.
From there, the network branches out into fulfillment centers proximate to major metropolitan areas, and will provide same-day deliveries.
The Memphis MSA is ideal for logistics by truck, train, plane or ship thanks to its centralized location. As one of the largest metropolitan areas in the Southeast, the Memphis MSA offers convenient access to the Gulf of Mexico via the Mississippi River, an expansive network of highways, five Class I railroads, and the second largest cargo airport in the world.
Imports, and expansion of retail and manufacturing are positive drivers for the Memphis MSA. Its inland port, access to major interstate highways, and five Class I
intermodal facilities, make it a strong distribution base for primary eastern markets.
Memphis’s location and proximity to the nation’s population are critical components of its desirability as part of a company’s supply-chain strategy. As consumer demands evolve, shrinking the timeframe between the ordering of goods and receipt, and online retail continues to grow exponentially, Memphis will continue to play an integral role in the distribution landscape.