BOON FOR BUSINESS
Area warehouse, logistics industry thriving
SARATOGA SPRINGS, N.Y. >> Saratoga County’s warehouse and logistics industry is thriving and growing, according to an index released this week by economic development organization Saratoga County Prosperity Partnership.
The Saratoga County Warehouse and Logistics Index, unveiled at an event on Tuesday with local business leaders, details an industry that employs nearly 2,000 people and generates an annual economic impact of $166 million in Saratoga County.
A total of 12,675 businesses are classified as transportation or warehousing in New York — which New York ranks fourth nationwide in transportation and warehousing GDP at $32.2 billion — including 595 in the Capital Region and 97 in Saratoga County.
Furthermore, the industry is growing, the in
dex explained. Warehousing and storage is one of the fastest-growing subsectors in Saratoga County, having grown 225 percent since 2004.
With nearly 100 transportation and warehousing operations, employment in Saratoga County rose from 1,470 jobs in 2001 to 1,772 in 2017, an increase of 21 percent. Meanwhile, the average annual wage grew from $36,221 in 2007 to $46,755 in 2018, a 29 percent increase that eclipses the Capital Region, New York state, and national averages.
This growth has to do with “The Amazon Effect,” Marty Vanags, president of the Saratoga County Prosperity Partnership, said at Tuesday’s event. “We love having things delivered to us.”
Due to that consumer demand, “This is an important and growing segment,” Vanags said, noting the strength and stability in Saratoga County’s warehouse and logistics industry.
Vanags also said there are opportunities for small businesses, particularly those offering delivery services, to get in on the action.
“E-commerce is a big deal,” echoed national warehouse and logistics expert Tim Feemster of Foremost Quality Logistics, while speaking at the event. In his presentation, Feemster shared some insight on how businesses in this industry can achieve success, with a specific focus on how to select an ideal warehouse and distribution site.
In a panel discussion including Feemster as well as Logistics One business development manager Michael Kelly and Trans-Border Global Freight Systems chief financial officer Josh Spiegel, these regional industry stakeholders spoke about challenges such as labor availability and expensive tariffs. While the labor issue can hopefully be overcome as more universities offer new programs geared toward this field, the best solution to many other issues is to have a well balanced commodity portfolio, Kelly said.
A Pulse Survey completed by industry stakeholders as part of the recent index found that other challenges are limited warehouse and storage capacity, limited warehouse space for expansion and logistics/transportation cost control.
In the survey, 41 percent of respondents said they plan to increase employment over the next 12 months, though 53 percent cited inability to attract or retain a qualified workforce as a major issue.
About 60 percent of respondents said they would benefit from workforce training or recruitment assistance.
In addition to Saratoga County, the index illustrates a regional economic stimulus that is even greater. Working with the Saratoga, Warren, Washington Workforce Development Board, Warren County EDC, and Washington County Economic Development, the Saratoga Partnership identified a $220 million annual economic impact and nearly 2,500 warehousing and logistics jobs across Saratoga, Warren and Washington counties.
“Saratoga County is home to a booming warehouse and logistics sector that provides increasing job opportunities and significant economic impact,” Vanags said in a press release. “Working with our partners in Warren and Washington counties, we are committed to providing the assistance companies need to ensure this important regional industry continues on an upward trajectory.”
The number of warehouse and logistics jobs in the Capital Region exceeds 12,000, with 1,772 in Saratoga County, 467 in Warren County, and 179 in Washington County.
“The warehouse and logistics industry is clearly a critical component of the economic well-being of Warren County and the surrounding region,” said Ed Bartholomew, president and CEO of EDC Warren County, in the release. “We are delighted to join with our regional economic development and workforce partners in Washington and Saratoga Counties in defining its impact, and more importantly, in working collaboratively to provide meaningful assistance that will support future opportunity and growth.”
Laura Oswald, director of economic development for Washington County added that it is encouraging to see positive momentum in the product distribution and logistics sector across Washington, Warren and Saratoga Counties. “Collaborative regional partnerships are vital to supporting continued growth in this increasingly important industry, and we look forward to working together to address common issues and pursue strategic opportunities,” she said in the release.
“The expansion of our regional warehousing and logistics industry is creating exciting economic and workforce development opportunities across Saratoga, Warren and Washington Counties,” said Douglas E. Leavens, executive director of the Saratoga, Warren, Washington Workforce Development Board, in the release. “It is important that workforce-oriented groups pull together to develop solutions to ensure we meet the needs of our business community and drive economic success in our region.”
The Saratoga County Economic Index is a quarterly event that examines the economic impact of various industries in the region. Previous indexes have focused on areas such as Manufacturing, Real Estate , Agriculture, and Arts and Culture.
More information about Saratoga County Prosperity Partnership and the Saratoga County Economic Index is available online at saratogapartnership.org.