New Jersey is a key location for distribution warehousing and goods movement in the United States. The state's location on the East Coast, its proximity to major population centers such as New York City and Philadelphia, and its access to major transportation routes such as the New Jersey Turnpike, the Garden State Parkway, and several ports, including Port Newark-Elizabeth make it an attractive location for distribution warehouses and logistics companies.
Many major retailers and e-commerce companies have distribution centers in New Jersey, such as Amazon, Walmart, and Home Depot. These warehouses are strategically located to allow for efficient goods movement and quick delivery to customers in the surrounding areas.
In addition to its location, New Jersey has a well-developed transportation infrastructure, including a network of highways and rail lines and several airports and seaports. This allows for easy access to markets in the northeastern United States and Canada and provides access to global markets through New York and New Jersey ports.
Overall, New Jersey's location, transportation infrastructure, and access to major markets make it ideal for distribution warehousing and goods movement. The state continues to attract many logistics and distribution companies looking to expand their operations and reach new customers.
In recent years, industrial-scale warehousing for goods storage and distribution to businesses and retail customers has undergone rapid change with the growth of e-commerce and rising consumer expectations for same-day delivery services.
The growth of e-commerce has led to an increase in the number of orders being placed and the need for retailers to fulfill these orders quickly and efficiently. This has led to the development of larger warehouses and fulfillment centers, which are necessary to store more inventory and process more orders in a shorter amount of time.
Additionally, the rise of consumer expectations for same-day delivery services has led to the development of smaller, more strategically located warehouses. These warehouses often referred to as "last-mile" facilities, are located closer to population centers and are used to store and distribute goods to customers in a timely manner.
Furthermore, the warehousing industry has also adopted new technologies such as automation, robotics, and warehouse management systems (WMS) to improve efficiency, reduce costs and increase accuracy in the supply chain process.
Per the NJ State Planning Commission Warehouse Siting Guidance, a 2021 report by Costar, more than 100 warehouses totaling 26.5 million square feet of rentable space are due to be built in New Jersey over the next three years alone. Growth and traffic at New Jersey’s ports (including South Jersey ports in Camden, Paulsboro, and Salem) is growing. For example, at the Port of New York and New Jersey, container volume has increased by 19% since 2016. It is the intent of the State Development and Redevelopment Plan (the “State Plan”) that the full amount of growth projected for the state, including logistics and warehousing, should be accommodated.