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Cost Advantages
The I-88 West region is your key to proven cost advantages. In a study comparing I-88 West to the South and Northwestern Chicago suburbs across major cost categories for logistics and distribution, I-88 West was shown to be the cost leader.
The study compares a hypothetical logistics and distribution center model serving the Chicago-land area, performing distribution, light assembly and/or packaging of mass market items for consumer purchase. This study shows the following significant cost advantages of the I-88 West region in a detailed presentation of all major cost factors associated with the distribution and logistics center:
- Wages and fringe benefits in the I-88 West region are considerably lower than that of South and Northwest Suburban Chicago offering cost advantages of up to $275,000 annually. A state of Illinois index was created by job title which depicts cost savings from 8% to 15% over Joliet and Elk Grove Village, IL; some of the most pertinent positions and their cost benefits are listed below:
- Warehouse manager wages in the I-88 West region are typically 13% lower than the state average while Joliet and Elk Grove Village, IL tend to be 1% and 2% above the state average respectively.
- Forklift operator wages in the I-88 West region are typically 6% lower than the state average while Joliet and Elk Grove Village, IL tend to be 5% and 3% above the state average respectively.
- Picker and packer wages in the I-88 West region are typically 9% lower than the state average while Joliet and Elk Grove Village, IL tend to be 4% and 3% above the state average respectively.
- Truck driver wages in the I-88 West region are typically 6% lower than the state average while Joliet and Elk Grove Village, IL tend to be 6% and 5% above the state average respectively.
- Inbound transportation costs are also advantageous offering up to $155,000 in savings annually.
- The I-88 West region offers its biggest cost advantage in sites and building costs. Site cost savings are any where from $1.8 million to $6.8 million and building cost savings are any where from $2.3 million to $3.25 million when compared to South Suburban Chicago and Northwest Suburban Chicago respectively.
- Occupancy Costs are also lower in the I-88 West region with savings ranging from $220,000 to $300,000.
- The I-88 West region also maintains an advantage in utilities. Below are the advantages in power and gas:
- Total electric power cost savings range from $600 to $10,000 annually over Northwest and South Suburban Chicago respectively.
- Total gas cost savings range from $2,000 to $5,500 annually over Northwest and South Suburban Chicago respectively.
