The drive along the 36-mile length of the Loop 303 freeway around Phoenix takes under an hour. The trip goes fast, but not quite as fast as the land along the 303 is being gobbled up by developers and filled with massive manufacturing and logistics facilities. “Developers from all parts of the country have been planting flags in that area. For the most part, that corridor is spoken for,” says one developer.
The rush of activity along the 303 was triggered by a number of factors, chief among them being the rising costs of development in California. Slowly, companies were starting to realize they could build a distribution center or manufacturing plant in the Phoenix area for much less than a facility would cost in the major cities in California. And, the ports of Long Beach and the border with Mexico were within a few hours’ drive by truck.
“The Southwest Valley of Phoenix has always been the industrial and manufacturing corridor,” said an industry VP. “You can get to the ports in six hours, drop your shipment and get back home, all within allowable times.”
This 5-minute Wall Street Journal video (Oct. 12, 2022) takes a close look at one 17-mile stretch of Arizona’s Loop 303 highway where dozens of warehouses are springing up. Importers say regions like this one in Arizona are a good alternative to expensive and heavily-congested hubs like California’s Inland Empire, where space is scarce and comes at premium prices. Click here to watch it.
Classroom discussion questions:
- What are the advantages and disadvantages of opening warehouses on Loop 303?
- Of the 7 factors that impact location decisions discussed on pages 338-340 (see Chapter 8) in your Heizer/Render/Munson text, which applies here?