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Updated: 10:05 p.m. Wednesday, May 5, 2010 | Posted: 12:25 p.m. Wednesday, May 5, 2010

Caterpillar project strengthens Dayton’s place in logistics

By Thomas Gnau

Staff Writer

CLAYTON — The groundbreaking for the Caterpillar Logistics Services distribution center off Hoke Road cements the Dayton area’s growing preeminence as a logistics and supply hub, observers said Wednesday May 5.

In recent years, Payless ShoeSource has opened a distribution center in Brookville, Syncreon has taken over a General Motors Corp. distribution site in Trotwood and Caterpillar has named Clayton for its 1-million-square-foot, 500-job parts hub.

That all adds up to $150 million in new investment and 1,200 new jobs in distribution, noted Dan Foley, a Montgomery County commissioner. And all of that investment arrived during a recession, he added.

“One of the things this project says about the Dayton region ... is the fact that major companies are really understanding the value of the Dayton region for logistics and distribution,” said Joe Tuss, Montgomery County assistant administrator.

Dwight Smith-Daniels, chair of Wright State University’s Department of Information Systems and Operations Management, said Dayton is increasingly seen as what he calls a supply chain “centreon” — a center of gravity for logistics activity.

Steve Larson, Caterpillar Logistics Services chairman and president, said Dayton emerged as the winner in a tight competition against other states and regions.

Larson offered four reasons for that: Availability of a quality labor pool in the Dayton area, proximity to suppliers and customers, a good transportation infrastructure and what he called a “positive business climate.”

He said the facility, when complete in 2011, will house 653,000 parts numbers, from engines offering 25 to 25,000 horsepower, from parts small enough to fit in a palm of a hand to parts weighing 30,000 pounds.

Larson expects the company to begin recruiting in the fourth quarter this year.

Contact this reporter at (937) 225-2390 or tgnau@DaytonDailyNews.com.

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