Business Growth Explodes in Northern Nevada
Northern Nevada is a growing distribution hub for manufacturers, tech providers and Fortune 500 companies—and that growth, coupled with an expanding skilled labor force, low cost of living and business-friendly environment, has made the area a prime location for companies with West Coast distribution or those looking to lower costs.
Several well-known companies, including Apple, Amazon, Starbucks, Panasonic and Tesla, have opened facilities in Northern Nevada. Tesla located its large battery factory, called the Gigafactory, in the Tahoe Reno Industrial Center. Additional clients in the location include EBay Commerce, 1-800 Flowers.com, Chewy.com, a Wal-Mart Distribution Center and PetSmart. What’s more, Google has recently purchased 1,200+ acres for a data center.
Earlier this month, Bloomberg declared that Reno is starting to look more like Silicon Valley. But growth isn’t from tech-related industries alone. There is significant growth strictly on the warehouse and distribution side. Manufacturers and distributors in the area include Ardagh Group SA, which produces 3.5 million cans of tomato paste and other food products daily, Benco Dental Supply Co. that distributes a wide range of dental supplies and Lambertson Industries Inc., which manufactures stainless steel products.Not only is Northern Nevada already booming, but it also holds significant potential. There is room for new and expanding companies with more than 72 million square feet of industrial space, according to the Economic Development Authority of Western Nevada.
Not only is Northern Nevada already booming, but it also holds significant potential. There is room for new and expanding companies with more than 72 million square feet of industrial space, according to the Economic Development Authority of Western Nevada.
Nevada has long been seen as a business-friendly environment, and it has one of the lowest costs of doing business in the West. The state was ranked No. 4 Most Business-Friendly Tax Climate by the Tax Foundation for 2017, and there is no corporate income tax, personal income tax, franchise tax, unitary tax, inventory tax, inheritance tax or estate tax. Plus, the state’s environmental and regulatory bodies can move more quickly than those in many other states, which has helped Nevada attract businesses.
Many companies are making the move because of Northern Nevada’s proximity to 12 Western states, which makes it easy to reach locations throughout the West. The Reno-Sparks area is close to California, and it is possible to reach major ports within three hours. It is also just hours away from California’s Bay Area and Silicon Valley.
Nevada also has a growing skilled workforce, and educational institutions in the area are doing its part to support it. The University of Nevada, Reno has created two new academic minors, one in battery engineering and the other in manufacturing quality. In addition, Truckee Meadows Community College has partnered with Panasonic to develop the Panasonic Preferred Pathway Program—an accelerated training program that prepares job candidates with skills desired by Panasonic. TMCC also has a variety of programs for students to prepare for employment in technical, high-wage and high-demand fields.
However, rapid growth can bring operational challenges, particularly related to logistics, that must be properly managed, and businesses need a reliable, efficient supply chain to be successful in the region.
ITS Logistics has provided creative logistics solutions in the Reno-Sparks area and throughout the U.S. since 1999 with its asset-based dedicated fleet, third-party logistics, warehousing and distribution services, and nationwide multi-modal freight brokerage. They recently expanded their operations into a new 630,000 sq. ft. facility and invested in new technology and employees in part to increase their offerings to new companies moving into the area.
“No one knows the logistics industry in this area like we do,” said ITS Logistics CEO Greg Sanders. “We can help businesses build out their supply chain or fill in specific gaps. Whether they need local manufacturing support, West Coast distribution, enhanced drayage and rail, a full, dedicated-fleet solution or a freight broker, we can create a customized solution to help them meet their short- and long-term goals.”