From A Logistical Standpoint, Why Is The Southern U.S. An Attractive Location For The Auto Industry?

1109 words - 4 pages

The success of every enterprise depends in a large part on the location where the business is established. It is critical to spend the necessary amount of time and care while choosing a location because once the business is established it should be there for many years. If this is not done with detailed care, it will become an unnecessary expenditure to move later on.From a logistical standpoint, the southern U.S. is an attractive location for the auto industry because there are large amount of cities that provide better infrastructure, if not in all, in most methods of transportation, especially waterways. These methods of transportation are critical to move raw products and supplies, and the final product to the automobile dealers across the nation and worldwide. There are also other factors that can influence the supply chain such as weather and work force climate that are better in the southern U.S. than in other areas of the U.S., which can adversely affect the logistics of any industry.This paper discusses the factors that make southern areas of the U.S. more attractive to the auto industry from the logistical standpoint. It will discuss the critical factor that the different methods of transportation directly play in the supply chain and other factors that will indirectly affect this process. This paper will provide facts and opinions from different reports and write-ups from subject matter experts, news reports, and other documents.TransportationThe transportation is critical to move raw products and supplies, and the final product to the automobile dealers across the nation and worldwide. There are many more logistic friendly cities in the south than in any other areas of the U.S. Some cities have a much better infrastructure to handle logistics functions than others. These are what are called "logistics-friendly" cities. Most of these metro areas are strong in at least three of the four major transportation modes - road, rail, air and water - and many are strong in all of them.Water ports included both ocean-going vessel ports and river ports. While this is not an option for most cities, it is, in fact, a major transportation resource and, for those cities blessed by nature, these ports account for a tremendous volume of cargo tonnage. Sea ports like in Louisiana, Texas and Florida, among others; provide an excellent mean to move manufactured automobiles from the U.S. to worldwide customers. Water ports are not limited to just the coastal cities, either. Cities like St Louis and Cincinnati both pass a lot of cargo through their inland ports. The Mississippi River also has plentiful ports across many states in the south, which are closer to the sea, that are excellent ports to move raw material and final product.Road networks are critical because you have to be able to bring in the raw materials and get out of the city with the final product. The interstate highway networks servicing each particular metro area are particularly much...

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