Labor Force
For distribution centers, St. Louis has the lowest operating costs among several central U.S. cities traditionally considered prime distribution hubs, according to a recent study. *
The study looked at all occupancy costs. Taking into account labor productivity — the amount of revenue generated per dollar of labor compensation paid —it found that the productivity of the St. Louis area work force was so superior that St. Louis was the least-cost option when all costs were combined. The area’s advantage is especially pronounced in warehouse-related positions, where productivity measures are 10 percent above the national average and higher than all competing cities in the Midwest/Middle South. In addition, productivity levels are higher than the national norm whether measured by local truckload, less-than-truckload, or long-distance truckload.
* Source: The St. Onge Company
