Ritzville listed nationally as a prime location for distribution centers

A recently released report from the Boyd Company shows Ritzville as one of the top 25 cities nationwide with the best logistics for operating a distribution center. Ritzville proved to be one of the most economical locations in the study.

The Boyd Company, a Princeton, New Jersey based company, was commissioned by the Adams County Development Council (ACDC) in November to conduct the study and the results proved positive for Ritzville.

Adams County Economic Development Director Stephen McFadden shared the positive news with the Adams County Commissioners on March 9. Prior to his meeting with the commissioners, McFadden also shared the study results with Ritzville Mayor Linda Kadlec.

Out of the 25 cities listed, Ritzville has the second lowest cost at $11.35 million to operate a 500,000 square-foot distribution center, which would employ 150 nonexempt workers.

The list is complied of 25 cities with close proximity to a Class 1 rail intermodal terminal and major deep-water container seaports, within three or four hours of both. These modes of transportation are growing in popularity, and are playing major roles in site selection decisions for distribution warehousing locations.

With the access to two major interstates, Ritzville is a prime location for distribution as manufacturers are ideally located within an hour of the Spokane rail terminals and convenient shipping to the Seattle/Tacoma ports.

The study breaks out five important categories that distribution firms look for in the data. The categories are annual labor costs, electric power costs, amortization costs, property and sales tax costs, and shipping costs.

The low operating cost is an appealing characteristic to businesses, McFadden explained, and the Ritzville area is also benefitting from the low cost power provided by Big Bend Electric Cooperative. The rates provided by Big Bend Electric were the lowest in the study, and McFadden explained they also pay dividends to users, which is another perk for businesses.

The study estimates the rate of pay for the 150 employees within the facility to be an average of $14.16 an hour. While the majority of the jobs within the facility are categorized as blue-collar workforce tasks, the highest paid positions of maintenance electricians would average $20.29 an hour.

The site acquisition cost in the study estimates the price per acre to purchase land near the interstate surrounding Ritzville at $36,500.

McFadden is currently working to make contact with landowners who own property alongside the interstates in order to create a target list of available properties. He needs the acreage to be 35 acres to fit the hypothetical facility, and any interested landowners can contact him if interested in selling property.

With the Boyd Company promoting the study on a national level, McFadden told the Commissioners three businesses have been in contact with the consultant company for more information pertaining to Ritzville.

An important component needing to be discussed and looked into is the expansion of housing in the Ritzville area. McFadden explained to the Commissioners he had approached the mayor about the need for more housing in order to become more appealing to businesses looking to build distribution centers in the area.

The results of the study are a positive sign for the Ritzville community in order to build industry and develop beyond the city. With an increased demand in shipping speeds and distribution of products, Ritzville is ideally situated to meet these demands.

McFadden explained Washington is also beginning to see an increase of California businesses relocating due to the current drought. This change in dynamics and need for a more climate-controlled area could be a benefit for potential development countywide.

The report also shows potential growth opportunities for the communities of Lind and Washtucna, McFadden explained, as they are also within close proximity to major transportation routes.

One of the main concerns is the price increase because of electricity rates outside of Big Bend Electric’s coverage area, which would drastically increase the overall operating cost. Other properties could have the benefit of already constructed wells though, which could help offset some start-up costs.

The Boyd Company is continuing to share the study data with national publications and businesses as part of their contractual agreement with ACDC. McFadden said he plans to attend local council meetings in the surrounding communities to share the study information with council members, and discuss it’s potential impact to the eastern portion of Adams County.

The Boyd Company also completed a second study for target industries for the entire county, including Othello. McFadden explained the study is primarily focused on the industrial growth areas in Othello, but could identify other potential business sectors for Ritzville, Lind and Washtucna.

The eight sectors identified by the Boyd Company for potential focus and industries in the county are: contact centers, distribution warehousing, drones for agricultural and environmental management, food and beverage processing, franchise target: Tim Hortons, freshwater aquaculture, functional foods and nutraceuticals, and medical devices and supplies.

McFadden, ACDC, County Commissioners, and local representatives from throughout the county will work to narrow the list of business sectors to find the one most likely to attract business to Adams County.

McFadden can be contacted by email at [email protected] or by phone at 509-331-2025.