Hartford Business Journal Special Editions

Logistics & Distribution 2021

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14 HARTFORDBUSINESS.COM | APRIL19, 2021 | LOGISTICS & DISTRIBUTIONS Hartford: A regional logis cs natural, with value built right in I t was about three years ago when the MetroHartford Alliance, an economic development organization that works to recruit businesses to the region, began marketing the area as a hub for logistics and distribution. Intent on other important sectors, "logistics didn't bubble to the top," right away, said Alliance CEO and president David Griggs. "We came out of the gates hard with insurance and aerospace," both big employers. "We hadn't planned on logistics and distribution, but you play the hand that's dealt." Hartford has a strong suit. As a national logistics facility, the Hartford area may not be overly competitive, but as a regional facility, "We're super competitive," said Griggs, with about 95 million square feet of industrial space in the city. "We needed to understand companies' decision drivers and make sure our marketing was targeting those decision drivers so that we were adequately selling Hartford." Lure of good location The main thing that sells the area is something it doesn't have to work to possess: Its location, said Griggs. Hartford's costs are lower than either of the large markets on either side of it — Boston and New York — with great roads and air transportation. A major connection point for corridors such as I-84 and I-91 as well as Routes 4 and 44, the MetroHartford Alliance cites U.S. Bureau of Economic Analysis figures showing that from Hartford, 23% of the U.S. population and 84% of the Canadian population can be reached within an eight-hour truck drive, representing a combined $4.9-trillion gross domestic product. Through air cargo, Bradley International Airport remains poised to have a big impact on New England as well, said Griggs. Companies leasing industrial space here are in good company, with well-known corporations such as UPS, FedEx, TJX Cos., The Home Depot, Ford, Honda and Walgreens all having distribution centers in the Hartford area. Griggs calls eCommerce and technology giant Amazon's expansion into Windsor — with a fulfillment center under construction at 1201 Kennedy Road — a differentiator in terms of how its being built. "It's not following a single-story, large footprint, but rather, they are building it up, in multiple floors. They only do that in markets where the cost per square foot is high, like in Singapore," he said, "but Amazon is doing it here, which puts us even more in the forefront." Sweetening the pot Warehousing and distribution companies don't just come to Connecticut because of where it is, but also because of who is here. The labor pool is a draw. "Depending on the industry, sometimes it's the first question," said Griggs on available talent. "The Governor's Workforce Council [with business leaders in industry sectors developing a labor pipeline based on regional needs] is a very good partner in getting as much of that training done on the front end as possible." Reducing uncertainties for warehousing and logistics companies looking to relocate to Connecticut is a priority. The next potential piece, says Griggs, is a pilot program creating shovel-ready sites where companies can locate and be assured of access to utilities they need. It's a concept his organization is working on with partners such as the Connecticut Department of Economic Community Development, Connecticut Department of Energy and Environmental Protection and AdvanceCT. "We're trying to bring something to Connecticut that has worked in other parts of the country," with the pilot program, he said. "If the land is already approved, it has taken risk out of the equation for these companies, for which time is money." By Susan Shalhoub

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