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    1 crlc presentation 2 15-12 1 crlc presentation 2 15-12 Presentation Transcript

    • Columbus Report Summary and OpportunitiesSteve SchellenbergIMS Worldwide, Inc.
    • IMSW 2011 Market Study• Verify Population coverage from Columbus• Verify Columbus is retaining competitive edge• Identify other regions threats to Columbus• IMC rate proof, or identify gaps on rates• Transportation/infrastructure corridor issues• Review of rail and truck services• Government/EDC initiatives review• Present a logistics “value proposition” – This is what we did
    • Report• Report Summary and Key Findings• From a Logistics POV, Columbus is Perfectly Placed• Comparative Zone of Coverage Maps• The Real Columbus Value Proposition• Import and Export Market Share• Real Estate Market Overview• Rail Logistics Marketing• E-Commerce Opportunities• Final Take Away
    • Miles Population % of US PopulationColumbus 500 Miles 142,100,000 Population 46.02% % of US & Canadian(500 Mile Radius) 500 150,100,000 44.11%
    • Columbus Miles 300 Population 53,700,000 % of US Population 17.38%(300 Mile Radius) Miles 300 Population 59,100,000 % of US & Canadian 17.36%
    • Market Population Reach 300 Mile % of US 500 Mile % of US Market Reach Population Reach Population Chicago 50,100,000 16.23% 82,900,000 26.87%Columbus 53,700,000 17.38% 142,100,000 46.02%Harrisburg 70,300,000 22.77% 112,200,000 36.35%Indianapolis 54,100,000 17.52% 111,200,000 36.03%Kansas City 19,100,000 6.18% 67,300,000 21.81%
    • Columbus Value Proposition Market Analysis Ranking (5 Represents Best Use/Cost Advantage) Chicago Columbus Harrisburg Indianapolis LouisvilleRanking Level 1-5 1-5 1-5 1-5 1-5Population Reach 300 3 4 5 4 4MilesPopulation Reach 500 1 5 3 3 2MilesCost of Labor 2 4 3 5 3Cost of Occupancy 2 4 3 1 5Logistics CostEast Coast vs. West 5 4 3 4 2Coast InboundTotal 13 21 17 17 16
    • Regional Market Real Estate AnalysisMarket Statistics Columbus Chicago Indianapolis Louisville Central PARentable Area (SF) 205,891,574 1,184,605,187 236,704,434 97,124,883 148,681,066Vacancy Rate 13.8% 9.2% 8.5% 8.0% 11.7%Net Absorption (SF) -1,104,356 6,239,271 3,541,406 521,250 1,056,168Under Construction (SF) 1,862,035 2,795,480 492,000 186,000 0Average Lease Rate $3.22 $3.98 $4.32 $2.88 $3.51Source: CB Richard Ellis
    • Report FindingsWhat we found: Columbus can gainimportant advantages over other freightcommunities by delivering a freight networkthat is predictable (Maersk Daily Service9/2011: “absolute reliability, its predictable,its boring and its right on time”)
    • Predictability in the Supply ChainDelivered by the Columbus Region Nine Recommendations1. Marketing message/value proposition received by all Columbus Region members2. Harmonize web contents so that all members are consistent in site selection, links to Columbus Region
    • Predictability in the Supply ChainDelivered by the Columbus Region Nine Recommendations3. Create a roster of Class A buildings to demonstrate Columbus Region’s advantage with this product type4. Establish a working group to accelerate development at Rickenbacker Rail Served Logistics Park5. Identify new sites that can be ready for Jobs Ready Sites
    • Predictability in the Supply Chain Delivered by the Columbus Region Nine Recommendations6. Retail sites supported by retail distribution centers not in Columbus7. Review, analyze Georgia’s Innovation and Logistics Center, attributes that may benefit the CRLC8. Forum for manufacturers and distributors on HOS and CSA-issues which impact drivers services and capabilities
    • Predictability in the Supply ChainDelivered by the Columbus Region Nine Recommendations9. Determine an e-commerce strategy for the Region in order to capture new distribution in this sector
    • Rail Served Logistics Parks
    • Rickenbacker Global Logistics Park
    • E-Commerce Overview
    • Types of New Commerce• E-Commerce = Electronic Commerce (Computer, Laptop, Desktop)• M-Commerce = Mobile Commerce (Phone, tablets, readers etc.)• S-Commerce = Social Commerce (Derived from Social Networks such as Facebook, Twitter, Groupon, etc.
    • What Retail Tells Us• National Retail Federation: retail growth for 2012 should be 3.4%, down from 4.7% growth in 2011 (GDP growth 2.1%-2.4%)• Amazon growth in 2010 was 39.5%, revenue of $34.2 Billion – 52 Distribution Centers exist – 28 overseas order processing, fulfillment DC’s – 17 Distribution Centers proposed/planned – 1/5/2012, Two new DC sites announced in VA, one in TN; 1/24/2012, new DC site announced in SC
    • E-Commerce Leaders• Next to Amazon, e-commerce leaders are: – Staples, $10.2b, 4.1% growth in 2010 – Apple, $5.2b, 23.0% growth in 2010 – Dell, $4.8b, 6.0% growth in 2010 – Office Depot, $4.1b, 0.0% growth in 2010 – Walmart, $4.0b, 17% growth in 2010 • (internetretailer.com, Top 500 List, 12/2011)
    • Projected Impact of E-Commerce• By 2025 it has been estimated that Ecommerce will represent 30% of all Retail Sales and account from 2.7 trillion in total sales (Source: Dematic)• Within 5 years, the percentage of sales closed at physical stores vs. alternative sales channels (E-Commerce, M- Commerce and S-Commerce) will drop from 91% (today) to 76% (Deloitte Study)
    • Shipping’s Role in E-Commerce• Fulfillment “promise” stipulates site selection and access to transportation networks and hubs• “Free shipping” retains transactions (3/4 of consumers abandon shopping at checkout if shipping is not free) – Shipping solutions include “retail shipping clubs based on purchase thresholds, linking free shipping to minimum orders or certain products (higher margins), customized delivery or providing free shipping on two or three day delivery solutions
    • Why Does all this Matter?• The logistics systems must continue to evolve to support this new commerce channel, – Buildings, building configurations, processing systems – Truck-load, less-than-truck load distances – Zone-skipping – Multiple air hubs – Truck Hubs – Customized deliver, disposal of products – And new job opportunities (WSJ: wanted e- commerce chiefs: salary ranges $300k-500k according to top recruiters (11/15/2011)
    • How Are They Making It Work?• Single DC supports national store replenishment and e-commerce order fulfillment• Stand alone DC(s) for store replenishment and stand alone e-commerce fulfillment centers (in different locations)• Third-party sourcing for all aspects of fulfillment and transaction support• Third-party sourcing for selected goods to enhance product launch, seasonal products
    • QUESTIONS ? Thank YouSteve SchellenbergIMS Worldwide, Inc.www.imsw.com