Gaining Access to North American Markets: The Ohio/Texas Advantage

COLUMBUS, Ohio, Nov. 15, 2011 /PRNewswire/ -- Entering U.S. markets can be a difficult challenge for new businesses seeking to serve North American customers. The size of the United States and its regional and state differences can complicate the process of choosing a site that meets the three most important criteria for any business: proximity to customer populations, favorable business climate and, particularly for manufacturing and logistics operations, strong transportation infrastructure.

Measured by those key criteria, two states are uniquely positioned to help companies reach their North American markets: Ohio, to reach the eastern part of the U.S. and Canada; and Texas, to reach the western part of the U.S. and Mexico.

A new white paper by the Ohio Business Development Coalition looks at how locating manufacturing and supply centers in both Ohio and Texas will allow companies to best serve the North American marketplace and achieve the fastest return on their investment. To download the white paper, visit www.ohiomeansbusiness.com.

While many manufacturers and transportation companies may consider coastal ports as a primary location, this assumption does not take into consideration the full logistics infrastructure required for the timely and efficient shipment of goods.

If your goal is access to Canada and the Eastern United States, Ohio is the logical choice. Ohio's legacy is one of manufacturing, agriculture and innovative technology. It borders on two of America's most important inland waterway systems – the Great Lakes and the Ohio River – giving companies that locate there access to the Mississippi River (and Gulf of Mexico) and the St. Lawrence Seaway and eastern ports. Its extensive rail, highway and air cargo capabilities allow Ohio businesses to take advantage of the state's desirable geography.

In addition, Ohio offers a strong support network of companies dedicated to supply-chain management, sourcing and procurement, production planning and scheduling, packaging and assembly, customer service and international trade assistance. And, its higher education system and skilled workforce are invaluable resources for any company that chooses Ohio.

"Ohio's central location and strong multimodal logistics infrastructure affords companies the ability to maximize flexibility while reducing supply chain costs," said Mark Patton, general manager, logistics industry for JobsOhio, a private non-profit corporation created to encourage business development in Ohio. "Both new and established companies are choosing to locate their distribution centers in Ohio to more profitably serve customers in the central and eastern markets of the U.S. and Canada."

If your goal is greater access to the American West and Mexico, no state offers a better business base than Texas. Texas offers seven of the top 50 water ports in the United States, 423 miles (680 km) of coastal waterways and a total of 28 ports. Like Ohio, it offers extensive air, road and rail infrastructure. Because Texas borders Mexico – almost 70 percent of trade from Mexico enters the U.S. through Texas – it is a natural outpost for companies seeking easier serve to markets south of the U.S. border. A strong work ethic, a skilled workforce and a higher education system that offers 17 transportation logistics programs combine to assure that companies locating in Texas will have a supply of highly competent employees.

Both Ohio and Texas boast business-friendly tax structures (#3 and #20 in the nation, respectively, according to a 2011 study published by E&Y and the Council on State Taxation) and proximity to large population centers. Companies that establish operations in both states will find cost effective access to customers throughout North America.

In addition, supply chain companies that establish operations in Ohio can reduce operating costs with the state's favorable business climate, because there is no tax on inventory or corporate income tax. Companies also can boost return on investment with no tax on purchases of machinery and equipment. This means a supply chain operation can keep everything on hand that a drilling operation will need without bearing an incremental tax burden.

And, perhaps the most significant tax benefit supply chain companies will gain is that products or services sold to customers outside of Ohio are not taxed by the state; so, companies located in Ohio can easily do business with any other states without having to pay Ohio state tax on revenue.

Ohio and Texas have the ideal combination of attributes needed to cost-effectively serve profitable markets throughout North America.

"The world-class logistics infrastructure, comprehensive supply chain and business-friendly environment in Ohio and Texas are just a few of the key benefits for companies looking to best serve the North American marketplace," said Ed Burghard, executive director of the Ohio Business Development Coalition, the nonprofit organization that markets the state for capital investment.

In addition, Ohio promises a perfect balance that allows business owners, their employees and their families the opportunity to achieve both their professional and personal aspirations without having to sacrifice one for the other. Ohio offers businesses an environment that makes it easy to foster work-life balance. The convenience of travel, with short commutes from work to home give more time to priority family activities.

"In Ohio, work-life balance is more than a buzzword; it's the way we do business," Burghard said. "Companies are trying harder to help their employees achieve better work-life balance because this positively impacts a company's bottom line. Ohio's low-cost, low-stress communities and short commutes create the State of Perfect Balance, where you can achieve both professional and personal success without sacrificing one for the other."

About the Ohio Business Development Coalition

The Ohio Business Development Coalition is a nonprofit organization that provides marketing strategy and implementation to support Ohio's economic development efforts. For more information, visit www.ohiomeansbusiness.com.

SOURCE Ohio Business Development Coalition