Logistics Overview for North Carolina
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1 June 2, 2016 Logistics Overview for North Carolina Charles HW Edwards
2 Outline Evolving Freight Logistics Network Why Logistics Is Important We Now Know Who We Are North Carolina s Supply Chain New Challenges Everyday Role of NC Department of 2
3 Evolving Freight Logistics Network New Interstates Intermodal Hub Widened turning basin 3
4 Why Logistics Is Important Each North Carolinian generates / consumes 20 tons of freight per year * 1 tractor-trailer (TL) load per resident per year = 9+ million TL per year Can t continue to expand and build roads Need to meet different requirements in different regions Optimize existing transport network and services 4
5 Logistics Flows o t / o t / Airport / Airport / Truck Truck Terminal / Terminal / Rail Rail Seller Transport Terminal Customs Terminal Customs Terminal Transport Consignee Risks Costs Freight Forwarder Insurance Agents / Banks Terminal Clearing Agent / Freight Forwarder Banks Information Financial 5
6 Quantify the economic impact of the supply chain Identify key connections, trends & context Provide perspective for planning, investment & policy We Now Know What We Are Published February 2016 Prepared by Supply Chain Resources Cooperative NC State MHI / NC Center for Global Logistics 6
7 Summary Findings One of every 4 employed Present in every county Traditional industries important Average annual labor income: $67, % of NC average annual wage of $43,280-52% more than US average annual wage of $44,888 Total paid state taxes equal about 58% from all sources (2013) A gauge for economic impact 7
8 Key Findings +IMPACT represents Indirect & Induced totals. All figures represent 2013 IMPLAN data 8
9 Defining the Supply Chain 14 North Carolina Industrial Sectors Listed in order of Value Added (GDP Contribution) 9
10 NC s Supply Chain Leading Sectors Rank Employment GDP Contribution State Taxes Paid 1, Distribution and Logistics 2 Industrial Machinery and Equipment Pharmaceuticals, Biologics and Medical Products Chemical Manufacturing 3 Textiles Industrial Machinery and Equipment 4 Chemical Tobacco & Foodstuffs Manufacturing 5 Household Goods and Furniture, Distribution and Logistics Tobacco & Foodstuffs, Distribution and Logistics Industrial Machinery and Equipment Pharmaceuticals, Biologics and Medical Products Chemical Manufacturing 10
11 NC s Supply Chain Leading Sectors, Distribution & Logistics: - 105K+ workers - more than 2.5% of the state s total workforce - Nearly $5.7B in Labor Income Pharmaceutical, Biologics & Medical Products: - GDP contribution of more than $19.4B Industrial Machinery & Equipment: - Direct Output of nearly $38.4B Tobacco & Foodstuffs: - $5.1B paid in state & local Tax 11
12 New Challenges Everyday General New economic paradigm Anti-globalization sentiment Circular economy and logistics Specific e-commerce Internet of Things Modal shift and selection Truck driver shortage FMCSA / HOS rules Class 1 railroads new focus / strategy Chief supply chain manager Disruptions and delays 12
13 Role of NC Department of Focus what does it really take to move freight? Optimized Infrastructure Meet needs of freight flows The key economic development factor Shift freight to rail Urban and rural freight corridors / Blue shield Intersection geometry for trucks Multi-state perspective Truck driver rest areas Flexible Infrastructure Accommodate and employ new technologies Autonomous vehicles Internet of Things Public transit for last mile pick-up / delivery operations 13
14 We plan for freight flows that never stop! 14
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