Famously known for the barbecue, the Cowboys, and the State Fair of Texas, Dallas ranks as the ninth largest city in the United States with the Dallas-Fort Worth (DFW) metropolitan area ranking fourth. As the fourth largest concentration of Fortune 500 companies in 2016, Dallas has been among the United States’ economic growth leaders and developed into a strong logistics center1. Serving as a distribution hub with its intricate interstate highway and railroad systems and its access to major seaports for global trade, Dallas is a top-ranked market for transportation, distribution, and all aspects of the supply chain.
North American Centricity
Dallas and its surrounding Dallas-Fort Worth metropolitan area offer a unique location with its centricity to the entire United States. Home to one of the busiest airports in the world, the Dallas-Fort Worth International Airport served over 64 million passengers and more than 727,000 tons of cargo in 20152. This major airport puts the city 3.5 hours from the major business districts of North America, while three major railroads put 98 percent of the U.S. population within reach by 48 hours3. Additionally, Dallas is at the core of five major interstate highways and 19 state and federal highways, making 35 percent of the U.S. population within 48 hours of Dallas by truck. With a strong foundation in air, rail, and road cargo, the Dallas area is a key supply chain location for shippers and providers.
Not only is Dallas a central location for the U.S., but it also is in close proximity to Mexico and several seaports, making Dallas, and Texas as a whole, a major trading hub and gateway to global business. Texas has 27 vehicular bridges to Mexico and 29 ports of entry facilitating nearly $650 billion in international trade from 2015, making it a unique location for imported and exported goods4.With top exported goods being petroleum and coal products, computer and electronic products, chemicals, and machinery, Dallas and Texas as a whole are at the core of global trade and the centrality within the U.S. and Mexico helps to improve efficiency for a shipper’s global supply chain process.
Warehousing Competitive Advantage
As one of the 32 foreign trade zones (FTZs) in Texas, the Dallas-Fort Worth metropolitan area is home to several distribution centers that can assemble, manufacture, process, or package company goods without the intervention of U.S. custom authorities5. Together with exemption from business and property taxes for foods purchased in Texas, the DFW area is attractive for many companies with cross-border operations. The warehouses operating out of the area receive between $1-$5 billion worth of merchandise and make between $1-$5 billion worth of shipments annually6. Additionally, Dallas, alone, exported $9.8 billion to the North America Free Trade Agreement (NAFTA) region and $391million to the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) region in 20167.
Serving as a distribution hub for global trade, Dallas continues to be a top distribution site selection as major companies have opened new distribution centers in the past year8. With a supportive infrastructure for air, rail, and road cargo along with accessibility to countless cities throughout North America, Dallas is a valuable city that multiple industries depend on for their supply chain success.