Nebraska is on a roll. Manufacturing employment in the state grew by 4.7 percent from 1990 to 2003, despite the employment downturn during 2001 to 2003. Manufacturing employment nationally declined by 18 percent for the same period. The state has quietly become not just a manufacturing growth center, but an emerging distribution hub as well.

 

Nebraska lies near both the population and the geographic centers of the United States. The nation's population center moved across the Mississippi River for the first time in 1980 and continues to shift westward. The current population center is in Crawford County, Mo., and the geographic center of the 48 contiguous states is Smith County, Kansas. More than 50 million people live within a 500-mile radius of Nebraska.

"Our central location allows companies located here to serve all four corners of the country in a relatively short time frame," says Richard Baier, director, Nebraska Department of Economic Development.

Nebraska also is well situated to serve international markets. The Union Pacific's main railroad line in central Nebraska, for example, is the busiest freight corridor in the world; many of the trains carry grain to West Coast ports for shipment around the world.

The state currently has operating Foreign Trade Zones (FTZs) in Omaha and in Lincoln. FTZs reduce or eliminate duties and excise taxes by allowing "domestic activity involving foreign items to take place as if it were outside of U.S. Customs territory."

 

The Lincoln FTZ includes a 372-acre general purpose zone located at Lincoln Air Park, adjacent to the Lincoln Municipal Airport and Interstate 80. Kawasaki's North American assembly plant is located in a subzone just adjacent.

Nebraska's attractive business climate, tax incentives, labor productivity, and effective job training programs combined have fueled unprecedented growth in the state's manufacturing sector.

 

"Our real estate is plentiful and is half the cost of sites in more urbanized areas," Baier says. "We also offer high employee productivity and a significantly lower cost of labor. The overall cost of doing business in Nebraska is lower than in other states."

When companies look to locate a new distribution center or logistics facility, they consider a long list of factors  --  everything from transportation infrastructure to quality of life. Nebraska has much to offer in all these areas: infrastructure, labor resources, education incentives and development assistance, and quality of life.

 

The Infrastructure Advantage  
Nebraska offers a unique blend of transportation infrastructure, making it particularly well-suited for distribution operations.

Highway. Nebraska's communities are connected by a highway system that includes 22,156 miles of hard-surfaced roads. That system includes a 482-mile stretch of I-80, the most traveled east-west transcontinental route of the interstate highway system. 

 

North-south interstate highways that add to Nebraska's market include I-29, which passes along the state's eastern border in Iowa, and I-25, which passes in close proximity to the state's western border.

More than 8,000 licensed motor carrier companies operate in the state, with approximately 815,000 trucks, according to Larry Johnson of the Nebraska Trucking Association.

Largely because of Nebraska's solid interstate connections, Werner Enterprises, one of the leading trucking companies in the country, is headquartered in Omaha. Werner, with $1.7 billion in revenues, is a truckload motor carrier of general commodities in both interstate and intrastate commerce. It operates throughout the 48 contiguous states and portions of Canada, and provides through-trailer service in and out of Mexico.

 

Werner's fleet consists of nearly 9,000 tractors, more than 23,000 trailers, and more than 13,000 employees and independent contractors, about 2,000 of which are based in Omaha.

Werner provides its Nebraska-based customers, as well as customers throughout North America, with solutions ranging from dry van, temperature-controlled, flatbed, and dedicated fleets to expedited services, intermodal, transportation brokerage, freight management, and system design.

Why locate headquarters in Nebraska? "Look at the map," says Dan Cushman, Werner's senior executive vice president and chief operations officer. "We are located smack in the middle of the country. Our headquarters and maintenance facilities are on I-80  --  from there we serve North America, Canada, and Mexico. The Union Pacific Railroad also has headquarters here, and we work closely together on intermodal traffic."

In addition to NAFTA carriers such as Werner and Crete Carrier Corp., based in Lincoln, the state hosts many regional logistics companies.

 

Nebraska Warehouse, for example, provides regional warehouse capacity as well as regional TL or LTL service through its subsidiary Cannonball Express Transportation Co. LLC. Cannonball operates a local cartage service to handle warehouse customers and other local business. It also handles intermodal dray work from Omaha area ramps to a 250-mile radius from the Omaha rail hub. Cannonball's primary service is refrigerated and frozen LTL delivery to all 48 states.

"We make weekly scheduled deliveries of time-sensitive perishables," says Bruce Meyers, vice president, Nebraska Warehouse, and president, Cannonball Express. Cannonball is also a licensed transportation broker that handles freight management throughout the country.

Water. With the Missouri River forming Nebraska's eastern border, the state is a western terminus for barge traffic. Barges have access to both the Gulf of Mexico via the Mississippi River and the Atlantic Ocean via the Great Lakes and the St. Lawrence Seaway.

Electric and energy. Many distribution facilities  --  particularly temperature-controlled  --  are large electricity consumers. This makes electric rates a key determinant in site selection. Here, Nebraska shines.

The state's industrial electric rates are 29.4 percent lower than the U.S. average, and are among the lowest of the 48 contiguous states, according to Roger Christianson, manager of economic development, Omaha Public Power District (OPPD).

A statewide grid system with regional interconnections assures reliability of electricity service and adequacy of supply. For the past several years, for example, OPPD's service availability index has averaged a near-perfect 99.9 percent.

"That plays well for us with data centers and energy-intensive users such as Omaha Steaks, which deals in frozen food perishables," says Rod Moseman, vice president of economic development for the Greater Omaha Chamber of Commerce.

One reason for Nebraska's low electric rates is its proximity to the vast low-sulfur coal fields of eastern Wyoming. It is also the only state in the nation with electric service provided entirely by public power. Nebraska's two largest electric utilities, Nebraska Public Power District (NPPD) and OPPD, have under their control an efficient and dependable "mix" of generating systems to supply current and projected needs. The mix includes coal, nuclear, hydro, gas, oil, and diesel sources.

NPPD's chartered territory includes 91 of the state's 93 counties, serving some 800,000 people.

Nebraska utilities also operate 12 hydroelectric plants and receive a power allotment from the Western Area Power Administration hydroelectric facilities on the Missouri River. The utilities operate with a reserve capacity that protects users against voltage reductions and brownouts.

Natural gas in Nebraska is also attractive to industry for service, supply, and price. A gas-producing state, Nebraska is well-connected by pipeline to the major gas fields of the central and southern plains. The state's average cost of industrial gas is less than both the regional and national averages.

 

Plugging into Customer Needs  

Nebraska's utilities work closely with companies considering a distribution operation in the state. NPPD, for instance, has an economic development team available to assist companies looking to expand or locate in Nebraska.

When working with prospective business customers, NPPD is "interested first in what a company's needs or project criteria are regarding location, space, transportation, labor, and energy," explains Dennis Hall, manager of economic development for the utility. "Then we help the company gather information about sites and proposals from communities that might meet its needs. The company's site selection team reviews these, tells us which ones they want to visit, and we facilitate those visits. Every company needs an electric supplier so we end up talking to all of them."

NPPD maintains information on about 500 communities at www.sites.nppd.com. "We have a searchable database of industrial sites or buildings throughout our area," says economist Donis Petersan of the utility's economic development department. "A company enters parameters and the search engine serves up a list of sites or buildings that meet its requirements. We also have in-depth online industrial fact books on about 100 communities."

Nebraska's labor force has a strong work ethic and high level of technical proficiency. The state was settled by individuals with the foresight and diligence to transform it into a world center of agricultural production. Their descendants maintain a work ethic and mechanical aptitude that carry over into the state's manufacturing sector:

"Compare wages for distribution center material handlers," suggests Baier. "In Lincoln, they earn $25,100 a year. In Denver, the same position earns almost $32,000, and in Chicago about $29,000, which is a 12 percent difference. That has a sizeable bottom-line impact." 

Contributing to Nebraska's high labor productivity are low absenteeism and employee turnover rates. Furthermore, Nebraska employers pay among the lowest unemployment insurance and workers' compensation rates in the nation.

 

Low Worker Insurance Costs  
In the case of workers' compensation, Nebraska's rate is $2.87 per $100 of manufacturing payroll. The state's unemployment insurance rates provide a more significant cost advantage  --  estimated unemployment insurance cost of $119 per worker is 51.5 percent less than the $245.47 average cost for some 15 other states.

Nebraska's workforce quality is also highly rated by the state's employers and by various national comparisons. In 2000, 90.4 percent of the state's population age 25 years and older were high school graduates, compared to 84.1 percent nationally.

 

In addition, the 2001-2002 Nebraska high school graduation rate was 92.6 percent, among the highest in the nation. One reason for the high graduation rate is the state's comparatively low student-teacher ratio  --  13.6:1 in 2000 compared to 16:1 for the nation.

Finally, Nebraska students consistently score above the U.S. average on both standardized achievement tests and college entrance exams. In 2002, Nebraska students averaged 21.7 on the ACT college entrance test, compared to 20.8 nationally.

When it comes to higher education, Nebraska offers state-of-the-art resources. The University of Nebraska, state colleges, and the community college network are important elements in providing resources to help manufacturers maintain an educated and well-trained workforce.

The University of Nebraska system, with campuses in Lincoln, Omaha, and Kearney, has the largest facilities among the state's 21 colleges and universities, and offers advanced degrees in most professional fields. It is a major center for both basic and applied research and has a combined student enrollment of more than 45,000. The University of Nebraska is one of the top 50 American universities in the number of doctoral degrees granted annually.

At the community college level, a number of state institutions offer specialized programs relating to logistics and transportation. For example, Omaha-based Metropolitan Community College's Workforce Development Institute (WDI) develops customized training for business and industry, government, and nonprofit organizations.

"We provide our training on-site or at one of our college campuses or locations," says Dwayne Probyn, director, WDI. "As for logistics training, we offer an associate's degree in business management specializing in operations and supply chain management. This program focuses on manufacturing production, purchasing, logistics, materials management, and statistics."

Other community colleges in the state offer similar programs. Southeast Community College in Lincoln, for example, offers a commercial transportation associate's degree.

"The state's education system is great," says Cushman of Werner Enterprises. "Our higher-level education programs develop excellent candidates for our organization."

 

Incentives and Development Assistance Programs  

Nebraska offers a number of tax incentives for companies that locate facilities in the state. In 1987, the state legislature passed sweeping performance-based tax incentive programs, demonstrating the state's commitment to creating a healthy business environment.

"Performance-based incentives mean the value of the incentive to the company is directly related to that company's new investment and new payroll," explains Baier.

"These incentives have a profound effect on stimulating business investment, expansion, and job creation," Baier continues. "Through 2002, for instance, 574 projects totaling $16.3 billion in investment and 72,320 jobs have been announced under the provisions of just one program  --  the Employment and Investment Growth Act."

Nebraska makes available some major programs for new and expanding companies. These include:

Employment Investment and Growth Act  --  Qualified projects are eligible for sales and use tax refunds and tax credits based upon achieving a minimum of $3 million in qualified new investment and 30 new full-time employees in a seven-year period.

 

A 10- percent investment tax credit on qualified property, and a 5-percent tax credit based on employee compensation  --  each year for seven years  --  are generated by the project and can be used for up to 15 years. These credits can be used to offset or eliminate Nebraska corporate income tax liability.

 

Invest Nebraska Act  --  Designed for larger projects, it has three tiers providing tax credits based on the number of jobs created and the amount of investment made in Nebraska. Qualified projects meeting the required investment, employment, and wage levels are eligible for a wage benefit credit of between 3 percent to 5 percent, based upon the average wages paid at the project.

 

This credit can reduce the amount of withholding required to be remitted to the state from the wages paid to other than base-year employees, or to reduce or eliminate Nebraska income tax liability.

The requirements for projects located in counties with a population of 100,000 or less are $10 million investment in qualified property, 25 new employees, and wages of at least 100 percent of the Nebraska annual average.

Employment Expansion & Investment Incentive Act  --  This act is designed for employers located in rural areas or counties with populations of 25,000 or less, or those located in state-designated Enterprise Zones that invest at least $250,000 and increase employment by at least five new full-time equivalent positions. The attainment and entitlement periods are two tax years.

 

Eligible projects can earn investment credit on qualified property up to $2,750 for each $50,000 net gain in qualified property, and $3,000 employment credit earned for each new full-time equivalent employee.

Nebraska provides development assistance programs as well. These include:

Nebraska Job Training Liaison  --  This cooperative arrangement among three major state agencies  --  the Nebraska Department of Labor, the Nebraska Department of Economic Development, and the Department of Education  --  weaves all available employment training and recruitment resources into customized packages designed to meet the specific needs of firms.

 

Services arranged through the Liaison include labor force recruitment, screening and assessment programs, training in specific skill areas for new employees, and skill development training for existing employees.

Industrial Revenue Bonds  --  All Nebraska counties and municipalities, as well as the Nebraska Development Finance Fund, are authorized to issue industrial revenue bonds to finance land, buildings, and equipment for industrial projects. No general election is required for an issue.

 

Other Financing Assistance  --  Supplementing traditional sources, financing assistance is also available through the Nebraska Investment Finance Authority and local development corporations. The Nebraska Department of Economic Development also administers development finance services, pairing government financing with conventional financing to put together the most comprehensive package.

The Nebraska Department of Economic Development also administers the Community Development Block Grant (CDBG) program. These grants are designed to create jobs and promote new investment. The maximum CDBG loan is 50 percent of the total project cost or up to $500,000 maximum ($250,000 for job training grants). Eligible companies can use CDBG funds to purchase machinery, equipment, and inventory; meet working capital needs; and construct or renovate real estate.

One additional incentive program of note is Community Improvement Financing (CIF), which is Nebraska's version of Tax Increment Financing (TIF). TIF is a method of financing the public improvements associated with a private development project in a blighted area by using the projected increase in property tax revenue resulting from the private development.

"If a company acquires a piece of property and builds a large project on it, the amount of new property taxes it pays goes back into the project to fund public improvements such as land clearance, street construction, sidewalks, parks, and other public spaces," says Baier.

 

This can be as much as 8 percent to 10 percent of the development cost, which is important for large real estate development projects such as distribution centers.

In addition to these benefits, many communities have local economic development programs that may be of assistance. For example:

These tax incentives join a number of existing incentives, including exemptions from property tax on business inventories, exemptions from sales tax on the equipment and energy used in manufacturing, and no state property tax.

 

Furthermore, while having a reasonable overall state tax burden, Nebraska has one of the most equitable and balanced state tax structures in the nation.

 

Quality of Life   
For a potential newcomer, Nebraska's livability is also a consideration. Nebraska ranks high in quality-of-life studies  --  and below average in cost-of-living measures. The state's landscape is clean and spacious, both in urban and rural areas. Residents blend Midwestern values with Western enthusiasm for growth and change. This helps create a high degree of citizen participation in both neighborhood and community-wide activities.

The cost of living in Nebraska is eight points below the U.S. average. Of particular interest is the cost of housing, which, in Nebraska, averages 7.7 percent less than for the country as a whole.

 

A Closer View: Greater Omaha
Omaha is the largest city in Nebraska, with a population of 402,000. Greater Omaha, an eight-county metropolitan area, has a population of 792,144, and more than 1.1 million people live within a 50-minute radius. Omaha is the 43rd-largest city and 60th-largest metro area in the nation, offering a potential labor force of 645,000 within a 60-minute drive. From 1990 to 2003, the Omaha metro labor force grew by 103,800 people, and approximately 18,500 people are actively looking for work in the area.

Forbes recently ranked Omaha as the 11th-best city for business and careers based on economic and quality-of-life factors. Newsweek also rated Omaha as one of the top 10 high-tech cities in the nation.
More than 84,000 students are enrolled in colleges and universities in the Omaha area; approximately 23,000 enrolled are non-traditional students (attending part-time or are age 25 and older).

 

During the 2002-2003 academic year, 14,600 students graduated from associate's, bachelor's, and advanced degree programs. Omaha area high schools turn out more than 10,000 graduates each year. And there are approximately 1,000 military separations per year from Offutt Air Force Base, located near Bellevue, Neb.

"Every year we interview 300 executives in Omaha to understand their needs and challenges," says Rod Moseman, vice president, economic development, for the Greater Omaha Chamber of Commerce. "We ask what they like best about doing business in Omaha. Their number-one answer is the workforce  --  its loyalty, reliability, and productivity.

"What you get for your dollar of wages is where Omaha really shines. Based on federal Department of Labor statistics, our value-added-per-dollar-of-production payroll is 10 percent higher than the national average, meaning you get 10 percent more for your dollar in wages," he says.

Omaha features a state-of-the-art telecommunications infrastructure, thanks in part to the existence of the U.S. Strategic Command headquartered at Offutt Air Force Base. USSTRATCOM is the command and control center for U.S. strategic forces, and controls military space operations, computer network operations, information operations, strategic warning and intelligence assessments, and global strategic planning.

The command is responsible for both early warning and defense against missile and long-range conventional attacks. The command is also charged with deterring and defending against the proliferation of weapons of mass destruction.

 

A command headquarters of more than 2,500 people representing all four services  --  including Department of Defense civilians and contractors  --  oversees the command's operationally focused global strategic mission. A total of more than 11,000 people work at the 55th Wing and USSTRATCOM at Offutt Air Force Base. 

"USSTRATCOM's location has been very important for continued development of Omaha as a center for information-intensive business," says Moseman. The city is home to several large corporate data center operations including ConAgra, Union Pacific, MCI, First Data, Mutual of Omaha, Gallup, First National Bank, and Qwest.

Eppley Airfield, located four miles northeast of downtown Omaha, is the largest airport between Minneapolis and Kansas City. In 2004, Eppley handled 3.9 million passengers, 58 million pounds of mail, and 44 million pounds of cargo. The airport serves 19 air carriers including three low-fare airlines  --  Southwest, Frontier, and America West  --  two commuter air carriers, and eight freight carriers including DHL, FedEx, and UPS. Southwest Airlines, the largest carrier serving Omaha, carried 876,000 passengers in 2004. U.S. Customs also has a presence on the premises.

Eppley's three runways  can handle any aircraft with the exception of the new A380. Each runway has precision ILS instrument landing systems. 

"We can accommodate plenty of additional growth," says Don Smithey, executive director of the Omaha Airport Authority. "We're working with one of our major tenants to expand cargo and freight facilities. We can react very quickly to requests from the business community for either hangar space or air transportation needs."

 

A Closer View: Lincoln
As Nebraska's second-largest city with a population of more than 235,000, Lincoln offers the ambiance of a friendly small town and the amenities, attractions, and entertainment opportunities of a major metropolitan area.

Lincoln is both the state capital and home to the flagship campus of the University of Nebraska. As a result, it provides a greater range of offerings than might be expected for a community of its size. Efficient transportation, a stable business environment, advanced health care technology, and an excellent educational system are just a few reasons why Lincoln ranks high in livability studies.

"From an economic development standpoint, we have a highly educated workforce, and offer a quality of life that is unparalleled in a lot of communities this size," says Jason Smith, vice president, economic development for the Lincoln Partnership for Economic Development. "Lincoln is a great place to live and raise a family  --  people come and stay. There are a lot of opportunities for education and training."

Acting as a one-stop source for companies looking to move to or expand in the Lincoln area, The Lincoln Partnership for Economic Development is a community-based, public-private collaboration that provides focused direction for Lincoln's economic development activities. The Partnership includes York, Seward, Gage, and Fillmore Counties, as well as Falls City. The Partnership works closely with the various economic development organizations in the region to attract new investment and jobs.

Tractor Supply Company, for example, recently announced plans to build a large distribution center just outside Lincoln in Waverly.

 

"We evaluated several states and many communities, and this was absolutely the best choice," says Mike Graham, vice president of logistics for Tractor Supply. "Everyone showed great enthusiasm throughout the process, from the governor to the Lincoln Partnership for Economic Development and the community of Waverly. We appreciate their help and believe this is an ideal location to support our future growth."

"Our region can meet the needs of a wide range of users," Smith notes. "We have just about every kind of site or building that  companies require, and numerous transportation and workforce options."

 

A Closer View: The I-80 Corridor
Local economic developers organized the I-80 Nebraska Coalition in 2003 out of a recognized need to work together as a region. Made up of nine counties spanning 250 miles across central Nebraska, the Coalition represents a region with a population exceeding 230,000. The common thread linking these counties is the transportation lifeline known as I-80.

"Businesses actively seeking relocation will find opportunities right here in the center of the state," notes Brad Maul, executive director of the Development Corporation of North Platte, and chairman of the I-80 Nebraska Coalition. "With available, fully-served industrial sites in all nine of the Coalition's counties, the I-80 Nebraska region is the perfect place for companies ready to leave the hassle and congestion found in more populated areas."

 

Wal-Mart, for example, recently selected the I-80 region for an 860,000-square-foot food distribution center.

"Many of our communities have existing buildings available, and offer a highly productive, skilled labor pool ready to serve large distribution centers as well as small logistics service providers," Maul adds. "The I-80 area offers convenient access to I-80 and several north-south federal highways, and each county is served by either or both the BNSF and the Union Pacific railroads.

"Affordable transportation, labor, utility, and land costs are all additional benefits that companies can experience by selecting a location within our region," Maul says.

A number of trucking carriers serve the I-80 corridor, including Lincoln-based Crete Carrier Corp. Crete, along with operating division Shaffer Trucking and wholly owned subsidiary Hunt Transportation Inc., is one of the largest privately owned trucking companies in the country, offering dry van service, temperature-sensitive service, and flatbed and specialized transportation services.

Collectively, Crete Carrier, Shaffer Trucking, and Hunt Transportation operate 5,348 power units and more than 12,435 trailers, serving customers throughout the United States, Canada, and Mexico. The companies rank as one of the 20 largest trucking groups in the country, posting a $745-million gross revenue in 2003.

 

Welcome to the Good Life  

A group of area businesspeople  --  representing carriers, warehouses, third-party logistics providers, freight forwarders, manufacturers, and other logistics-related groups  --  recently formed the Nebraska Logistics Council. The Council's mission is to create a professional group working collectively to bring education and information to those in Nebraska's logistics arena, and to create more incentives for manufacturers and shippers throughout the United States and overseas to utilize logistics services firms in Nebraska.

"Nebraska has a lot to offer companies from a logistics and transportation perspective," says Jeffrey Ziegler, president of the Nebraska Logistics Council. "The Council works to bolster awareness of that fact, encouraging companies to consider Nebraska when looking for new distribution sites." 

During the past few years, a number of major companies have done just that, choosing Nebraska as the site for new distribution facilities. These companies include retailers such as Wal-Mart and Tractor Supply Company, which is building a new distribution center near Lincoln, as well as food processors, manufacturers, and logistics service firms.

One such company, Omaha Steaks, serves its entire customer base out of multiple distribution facilities and fulfillment centers located in and around Omaha. Omaha Steaks processes, markets, and distributes a wide variety of premium steaks, red meats, and other gourmet foods.

 

Headquartered in Omaha, the company's state-of-the-art business facilities include three manufacturing plants and two distribution centers. Omaha Steaks employs more than 1,800 people.

"Our primary raw material is red meat that comes largely from packing plants throughout the Midwest-Great Plains area," says Ron Eike, director of operations for the company.

 

Inbound product comes to the company's Nebraska processing facilities via TL carrier, with logistics provided by the suppliers and meat packers. Two facilities are located in Omaha, and the third is located 60 miles northeast of Omaha.

Once processed, product moves to the company's finished goods warehouses and then into outbound shipping facilities. "At our shipping facilities, we pick and pack product to a small-parcel environment," explains Eike. All of Omaha Steaks' outbound food is frozen, shipped in Styrofoam coolers.

"We use public warehouses in the Omaha area, ranging in size from 2,000 to 15,000 pallet positions," Eike continues. "Omaha and Nebraska are in the middle of cattle country so we have an abundant supply of freezer warehouse operations."

Outbound, Omaha Steaks ships orders via truckload to one of six hubs throughout the United States. Once at the hub, the truckload is broken down, sorted, and shipped to individual customers, almost entirely by UPS. Omaha Steaks outsources its outbound logistics to UPS Supply Chain Solutions.

Omaha Steaks also supports more than 60 retail stores located in major markets nationwide. It distributes that volume out of one warehouse facility in Omaha.

 

"We use forward distribution centers to support the stores," Eike says. "We manage the flow from our warehouse to these forward distribution facilities, and they manage shipments to the stores in their region. This system dramatically improves service to the stores, while reducing both the amount of inventory carried, and the cost of inventory support."

Omaha Steaks believes Nebraska offers distinct logistical advantages. Proximity to its beef producers reduces inbound transportation costs, which gives the company a big advantage on raw material costs.

"Because we are located in Nebraska," explains Eike, "we can get small-parcel delivery to either coast very quickly  --  anywhere in the United States within three business days. The shorter the distance, the lower the parcel transportation costs  --  that's a very distinct advantage.

"On the truckload side, Nebraska's interstate infrastructure is critical from a cost standpoint," he continues. "Our logistics hub can be accessed quickly via interstate only. We are in close proximity to several major truck lines  --  including Werner and Crete Carrier  --  that supply our truckload movements, as well as access to many small regional carriers all located in or near Omaha."

Air transportation in Nebraska is also convenient, Eike says. Substantial air cargo capability is available through Omaha, Kansas City, Des Moines, and Sioux Falls.

"These four airports are within two hours travel time from our locations," says Eike. "Usually about 5 percent of our small parcel goes via air. That volume peaks at certain holidays. During Christmas season, for example, we fill several aircraft a day.

"As we grew through the years, we looked at other locations and other regions of the country to locate distribution capacity," Eike recalls. "Each time, the higher cost outweighed any benefits. When we were considering capital expansions, the state ensured that we stayed in Nebraska through its incentive programs."

The company received an attractive economic package from the state to retrofit an existing plant site in Snyder. "We worked with the Nebraska Department of Economic Development to get the plant set up," Eike says. "Snyder was a small economy starved for jobs, and we have a great workforce. We have more than 80 employees  --  that's a significant number in a town of fewer than 400 residents. So we are very important to the area."

Nebraska's neighboring states  --  Iowa, Kansas, South Dakota, and Missouri  --  have very aggressive programs for attracting business, according to Eike. "They are all looking to attract payroll and taxes," he says. "But Nebraska has been even more aggressive and as a result our employment in the state has grown dramatically over the last 15 years.

"The climate for doing business in Nebraska from a state, county, and local standpoint is very strong," Eike says. "Nebraska is a good state to do business with, and it's an attractive place to bring employees. When people join our company, we welcome them and tell them our motto: "Welcome to the good life.'"    
 
For more information about Inbound Logistics' Economic Development Special Sections, contact James Armstrong, Director of Economic Development, at 815-334-9945 or via e-mail at Jim@InboundLogistics.com.