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We've had several coastal suppliers move distribution into Northern Texas, Ohio and other more central locations. Northern Mississippi outside Memphis is great for many reasons. Southern NH (outside Boston) is popular in New England.
Factors to look for:
1) Central Location
2) Low taxes
3) Cheap abundant labor
4) Air and truck hub
5) Quality of life factors for owner
6) Proximity to customers
7) Proximity to suppliers
8) Pool of cheap student-techie labor (college town)
Places to avoid:
1) California--of course.
2) Corner states (New England, Fl, Pac NW)
3) Rockies (too little population within 1 day shipping)
4) Places with heavy snow which can close a business for a few days a year
Ultimate location--Next door to a technical college in Northern Mississippi, 20 miles south of Memphis.
I have found Triangle/Raleigh/NC area to be better. You have bunch of counties and cities mixed in one small area. I prefer the center (Cary) where there is maximum no. of counties and cities adjacent on the boundary. I can chose between rich/poor/less tax/safe/educated county for each step of the operation.
Geographically speaking, Kansas is a great state to ship from since you only take three business for delivery to most places: [ups.com...]
You would also need to consider the location of your suppliers and customers. Where are your suppliers located and the move increase your transportation costs? Where are your customers located? Would the cost of shipping change if you moved to a different location?