1 / 30

Logistics and Supply Chain Asset Study

Logistics and Supply Chain Asset Study. Collaborative Development Council Briefing August 20 , 2014. Agenda. Purpose, Vision & Goals. Selected Findings. Considerations for Development. Directions for Development . Study Purpose.

diem
Télécharger la présentation

Logistics and Supply Chain Asset Study

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Logistics and Supply Chain Asset Study Collaborative Development Council Briefing August 20, 2014

  2. Agenda Purpose, Vision & Goals Selected Findings Considerations for Development Directions for Development

  3. Study Purpose • Create sustainable jobs that can support growing families and help to revitalize Michigan • Assess the logistics and supply chain market opportunity • Identify the factors and actions necessary for successful development • Quantify the benefits, costs, and returns on investments • Create a compelling blueprint for successful action and implementation

  4. Vision • Grow as a recognized North American center for regional and global industry, marshalling and developing infrastructure, technology and human assets for supply chain and logistics functions, to renew and advance the economy of Michigan and the livelihood of its citizens

  5. Goals - Summary • Create more and sustainable jobs to support growing families, through better alignment of Michigan’s logistics and supply chain assets with domestic and global opportunities • Organize development to make Michigan the epicenter of a bi-national supply chain economic system with benefits reaching across the state • Foster a 21st Century logistics operating environment • Better leverage Michigan’s natural, cultural and economic advantages • Move to action

  6. Goals – Example Detail Create more and sustainable jobs through better alignment of Michigan’s logistics and supply chain assets with domestic and global opportunities. • Catalyze growth and change in manufacturing, distribution and trade with well placed transportation and logistics facilities providing efficient access to markets, resources and services • Prioritize infrastructure investment and policy initiatives to lower cost, reduce time, and remove risk Organize development to make Michigan the epicenter of a bi-national supply chain economic system with benefits reaching across the state. • Pull together as a state in economic development and investment • Offset peninsular location by improving the functioning and positioning of Michigan and Ontario as one region • Join the southeast Michigan trade and production center to facilities and activities throughout the state and the Great Lakes area • Support the integration of commercial processes in design, fabrication, assembly and distribution through business attraction, siting, and transportation and information networks

  7. Agenda Purpose, Vision & Goals Selected Findings Considerations for Development Directions for Development

  8. Core Assets (Michigan Advantages) • Multimodal domestic and trade network • Full modal range, good NAFTA and global connections • Principal nexus to top US trading partner • All modal avenues “lets us be aggressive and resilient, and makes our property more valuable” • Ample roadway capacity and route alternatives • Built for greater demand: lesser congestion and room to grow • Lesser risk of delay due to multiple routes • Robust truck supply for outbound shipping • Land in key locations • Fresh water • Reliable resources for production input, processes and cooling • “Unique opportunity in tri-state area versus California and Texas”

  9. Core Assets (Michigan Advantages cont’d) • Manufacturing skills • Culture of making things • “If need reverse engineering, many firms can help within 100 miles” • Reflected in supplier base for many industries • Supported by leading universities • Logistics skills • Well established logistics capabilities: many modes, leading plus many smaller third party logistics (3PL) companies • Honed in service to demands of auto industry • Value added services: kitting, sequencing, packaging, labeling, assembly, warehousing • Deep customs and border process experience • Supported by leading universities • “Should be Silicon Valley for supply chain operations”

  10. Economic Development Environment • Michigan needs a comprehensive economic development plan and cohesive strategy • Stop current state of cannibalizing from neighboring communities within the state • Perception that areas are hurt due to lack of “move-in” ready real estate • Developers have been wary about building spec buildings • Often companies moving into the area do not want to build a new facility or gut an old one due to time constraints • Many existing facilities are obsolete • General lack of availability of sites with direct rail access • Lack of consistent high speed broadband access in certain rural areas

  11. Logistics Limitations • Major highway conditions good, off-highway “crumbling” • Primary system conditions comparable to other states • Other investment in infrastructure “isn’t there and roads declining” • Michigan location “not on the way to anywhere” – except Canada • Consequence of peninsular geography • Affects location for regional distribution more than manufacturing • Location models typically capture only US population • US population within 500 miles of Detroit: 117 million • US/Canada population within 500 miles of Detroit: 131 million • 14 million added population equivalent to Los Angeles MSA

  12. Risk Management • Tools: network alternatives, facility flexibility, information feeds, service recovery – and logistics skills • Facility flexibility favors leasing over purchase to adjust to market shifts • Requires inventory of modern, variable tenant buildings • Risk management affects operational and location decisions • MI is strong in several management areas – notably network alternatives and logistics skills – and can grow stronger • Building market awareness important

  13. Agenda Purpose, Vision & Goals Selected Findings Considerations for Development Directions for Development

  14. Site Requirements Template

  15. Opportunity Matches

  16. Opportunity Matches

  17. Opportunity Matches

  18. Region Comparative Summaries – Reference Map

  19. EDC Region Comparative Summary:Freight Infrastructure

  20. EDC Region Comparative Summary:Other Logistics Factors

  21. Agenda Purpose, Vision & Goals Selected Findings Considerations for Development Directions for Development

  22. Directions for Development • Michigan has Logistics & Supply Chain assets around the state, but the key infrastructure assets are concentrated in SE MI, inside the I-69 corridor • Major interstate highway corridors • Both bi-national bridges, and the planned bridge • All rail intermodal facilities, and the planned improvement • Air hub • Top volume waterfront • All contribute to MI’s capability to support domestic & international trade, have capacity for growth, and interact as a multimodal system with alternatives that reduce risk

  23. Directions for Development • These assets are matched by critical non-infrastructure assets, also concentrated in SE MI: • Workforce skills in manufacturing and logistics • Research universities in manufacturing and logistics • Affordable land for development – but not suitable buildings

  24. Directions for Development • Opportunities to exploit LSC assets with developable sites have been identified around the state, but economic development focused in Detroit is uniquely able to leverage all of the key state assets, especially planned new infrastructure • Build where your assets are: proximity to transportation assets and labor pools are primary considerations in LSC site selection • Generates quantifiable benefits around the state • Opportunity in Detroit is clustered in two sites connected by interstates • Economic development programs throughout MI should be pursued to exploit local opportunities, and to complement the effort in Detroit as part of a statewide economic system

  25. LSC Program Example: Detroit • Finish what we started: NITC, DIFT • Site assembly - chiefly residential • Acquisition and rezoning, or special use zoning • Site preparation: making developer-ready • Risk reduction options • Provision of free or low cost land • Provision of low-cost financing • Access route improvements • Mainly state of good repair: arterial pavement, bridges, current condition and anticipation of higher volume

  26. LSC Program Example: Detroit • Neighborhood support • Security and lighting • Transit access from homes to jobs • Traffic and noise buffering (residential/industrial breaks) • Local hiring and apprenticeships • Development programs • Business attraction marketing • Selling MI logistics advantages, tailored to targets and district • Branding • Exploit MEDC 3PL program • Use of incentives and inducements

  27. LSC Program Example: Detroit

  28. LSC Program Example: Outside Detroit • Real Estate • Address zoning or permitting process issues to ensure expedited and certain process for new development or redevelopment • Identify redevelopable land in private ownership and provide technical or other assistance to facilitate redevelopment • Establish site certification programs to identify “shovel-ready” parcels that may be marketed outside the state • Transportation Infrastructure • Address state of good repair issues on regional and local roadways

  29. LSC Program Example: Outside Detroit • Business Attraction and Retention • Work with MEDC and other parties to develop a marketing strategy and materials to increase visibility and change perceptions outside MI • Work with local businesses to build more robust local/regional cluster relationships: supplier/vendor, innovation/development • Incentives and Other Policy Tools • Develop a specific evaluation framework for applying state’s flexible incentive programs • Identify hard (financial) and soft (training, permitting and regulatory process) efforts that region and local municipalities can use to augment state programs • Set thresholds for target companies on criteria of industry/use targeting • Establish ongoing ROI and reporting criteria for state and local incentive eligibility

  30. Thank You!

More Related