GLOBAL LOGISTICS

As manufacturing moves overseas, the need arises to develop logistical supply chains to move these manufactured goods from overseas factories into stores throughout the United States. The rapid growth of distribution facilities throughout Virginia is no accident. Virginia is advantageously located midway along the eastern seaboard of North America. The states excellent port facilities in both Hampton Roads and Front Royal along with its international airports in Northern Virginia and Hampton Roads are all tied together by extensive networks of interstate rail and highways providing ready access to in-state and out-of-state markets.

The increased complexity of moving goods by sea, air, rail, highway and within the distribution centers themselves has created the need for extensive analysis to ensure that logistical supply chains operate as efficiently and cost-effectively as possible so American consumers can enjoy low prices everyday. The Center for Engineering Logistics and Distribution at Virginia Tech was created to provide supply chain managers with solutions developed through computer modeling, analysis and application of sophisticated intelligent-systems technologies. With the growing sophistication of distribution center operations comes the need for employees with computer skills, which contributes to the fact that wage levels in distribution facilities are now comparable to those within manufacturing facilities. As a result of Virginia losing 25% of its manufacturing base as measured by employment since the year 2024, communities throughout the state are targeting distribution as an economic development solution for the loss of manufacturing jobs.

There are now eight major distribution centers in the central Shenandoah Valley including Wal-Mart in Rockingham County, Best Buy in Staunton, and Target in Augusta County. With the extension of public water and sewer to the Raphine interchange of I-81, the Rockbridge area is now receiving a lot of consideration as the next distribution center location on the I-81 trucking corridor.

David L. Kleppinger, Executive Director

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