West Virginia’s energetic campaign to attract the fulfillment sector has gotten the attention of some of the top names in the industry.
Global online retailer Amazon.com opened its first customer service center on the East Coast in Huntington, W.Va. Outdoor retailer Cabela’s chose Wheeling, W.Va., for its new store and warehouse to fulfill catalog and Internet orders. Coldwater Creek built — and expanded — its distribution and customer contact center in Parkersburg, Wood County, W.Va.
In December 2010, retail giant Macy’s Inc. announced it would build its $150 million e-commerce fulfillment center in Martinsburg, Berkeley County, W.Va. The Martinsburg site won over more than 150 possible competing locations.
The new fulfillment center will support the continued growth of Macy’s online business. Construction on the 1.3 million-square-foot facility is expected to begin in spring 2011. When fully operational, the Martinsburg fulfillment center is expected to employ 1,200 full- and part-time associates year-round and approximately 700 temporary seasonal associates.
West Virginia’s winning appeal was in its total advantage and financial package, said state government and company officials. The state’s bundle of advantage includes:
- Strategic location. West Virginia is within overnight shipping distance of half of the U.S. population and near many major metropolitan hubs.
- Transportation access. The state carries commercial traffic by road, rail, river and air. When announcing its pick, Macy’s cited the location as “located strategically along I-81, about 80 miles northwest of Washington, D.C.”
- A skilled work force, known for its productivity and low turnover rate.
- One of the nation’s lowest costs of doing business.
- High quality of living, from the state’s natural beauty, low-crime communities and low cost of living.
- Positive business climate. The state closed its 2010 fiscal year with a surplus of more than $102 million; the fifth year in a row with a surplus – without a tax increase.
- Pro-growth tax reforms. West Virginia removed approximately $235 million of business tax burden in during the past five years.
West Virginia may pump up the power of its economic attraction even more. In his 2011 State of the State address, West Virginia Governor Earl Ray Tomblin announced plans to ask the State Legislature to consider additional incentives that will assist in the recruitment of distribution/fulfillment facilities.