December 15, 2023 How New Jersey’s Logistics Power the Holiday Season

With merchants offering deals throughout the holiday season, it comes down to one major question; How can the U.S. support continued demand?

In 2022, 196.7 million U.S. consumers shopped in-store and online between Thanksgiving and Cyber Monday, up 17 million from the year prior, according to the National Retail Federation (NRF). With merchants now offering deals throughout the holiday season rather than solely banking on Black Friday, it comes down to one major question: How can the U.S. support continued demand for holiday gifts nationwide? New Jersey is a key part of the answer.

Ports as a Logistical Advantage

While there are many ways to get materials in and out of various regions within the U.S., ports remain the quickest and most cost-efficient way to import goods. The United States has approximately 360 ports that move 914 million tons of goods each year, and the Port of New York & New Jersey is the second largest in the country. In 2022, the Port of New York & New Jersey moved approximately $271 billion worth of goods—more than 9.493 million twenty-foot equivalent units (TEUs). Of those imports, only 661,174 TEUs worth went to New Jersey, meaning other states, including New York, California, Pennsylvania, Illinois, Massachusetts, Ohio, Connecticut, Florida, and Texas, were the end destinations for the materials and goods. New Jersey’s port is often the critical first contact with the continental U.S., which leverages the state’s access to multiple modes of transportation, to distribute goods to their final destinations.

Intermodal Connectivity Supports Distribution

Once goods pass through U.S. ports, they are transferred to one of three major means for distribution: air, rail, or car/truck. In New Jersey, air cargo may be shipped through four major airports: John F. Kennedy International Airport, Newark Liberty International Airport, LaGuardia Airport or Stewart International Airport. These four airports combined are ranked the busiest regional airport system in the U.S. In September 2023, the Port Authority of New York & New Jersey (PANYNJ) estimated that more than 83,000 short tons of cargo were shipped domestically from NY/NJ airports, up 6 percent from last year. Federal Express (FedEx) and United Parcel Service (UPS) ranked top in the region with 25% of the region’s total traffic, including airline passengers.

According to the Association of American Railroads (AAR), freight railroads account for roughly 40% of U.S. long-distance freight volume (measured by ton-miles) — more than any other mode of transportation. 107 million people, or one-third of the U.S. population, are within a day’s drive of New Jersey. Located in the middle of the Boston-New York City-Washington corridor, New Jersey offers unprecedented access to one of the world’s most concentrated and affluent markets, with 38 million consumers and $3.75 trillion in economic output. New Jersey also boasts the nation’s highest railroad density with 3 Class I freight railroads. If goods are loaded onto trucks for shipment, they can take over 2,900 miles of interstates and highways to their final destination, including I-78, which sees more than 4 million trucks annually.

New Jersey’s strategic location and robust infrastructure are clear advantages. Many major e-commerce companies have recognized New Jersey’s logistical advantages, with companies such as Wayfair, The RealReal, and Rent the Runway establishing and expanding distribution capabilities in the Garden State in recent years.

Workforce Matters Most

In 2022, about 913,400 people were working in the trade, transportation, and utilities industry in New Jersey — the most of any industry. This strong workforce supports the state’s ability to handle the large number of goods that move through the state, through the Port of New York & New Jersey and via rail, air, and truck transport. It’s seeing a new resurgence of the manufacturing industry following the pandemic supply chain issues as many companies have decided to bring their manufacturing facilities back to the U.S., according to Michelle Comerford, project director at New Jersey-based site selection firm Biggins Lacy Shapiro & Co.

Coastal locations – specifically the East Coast – are a good starting point for reshored manufacturing facilities as they offer access to talent, logistics hubs and ports. New Jersey, in particular, is home to more than 236,000 advanced manufacturing workers and support from 150+ higher education institutions. The state has allocated $50 million in funds to boost the manufacturing industry, adding more than 5,000 jobs since 2018. This investment is not only a benefit to existing manufacturers but also an incentive for aspiring entrepreneurs to join the industry.

A Model for Success

There are many ways that goods make their way from ports to consumers, and chances are your holiday gifts went through New Jersey before making it to their final destination. Supported by a world-class workforce, the state’s logistical industry is set to continue its growth in logistics/transportation and manufacturing industries. With the holidays right around the corner, New Jersey promises to be a thriving hub for businesses and entrepreneurs, offering access to talent, logistics and promising economic growth.

www.njeda.gov

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