Examining spatial patterns and economic interactions of logistics activities across three Texas metropolitan areas

Abstract

This study examines the spatial dynamics of warehouse location choice and the interplay between e-commerce, logistics businesses, and supply chain entities in three major urban areas in Texas: Houston, Austin, and Dallas-Fort Worth. We investigate the key factors influencing warehouse selection while accounting for spatial spillover effects (i.e., co-locational relationships), using data from 2003 to 2016. A major finding is that different types of business establishments exert distinct influences on warehouse location choice, varying across spatial scales. Notably, the effects from neighboring spatial units sometimes diverge from the direct impacts. For instance, manufacturing establishments have a positive direct influence on warehouse location choice in all three study areas, while neighboring manufacturing units show negative effects in Austin and Dallas. The analysis also highlights that when spatial interactions among e-commerce facilities, logistics businesses, and supply chain entities in adjacent units are accounted for, several transportation infrastructure and socioeconomic factors lose their statistical significance. The results provide valuable insights for policymakers, industry practitioners, and urban planners for informed warehousing facility allocation and development decisions in Texas metropolitan areas.