When it comes to maximizing operational efficiency and cutting costs in international trade, savvy businesses are always looking for an edge. One often-overlooked tool that provides a host of strategic benefits is the Foreign Trade Zone (FTZ). Whether you're importing, storing, assembling, or re-exporting goods, an FTZ can offer advantages that make a real impact on your bottom line.
Let’s break down what a Foreign Trade Zone is and why it might be the missing piece in your company’s logistics strategy.
What is an FTZ?
A Foreign Trade Zone is a specially designated area located within the United States but legally considered outside of U.S. Customs territory. These zones are typically near ports of entry and allow businesses to bring in foreign goods without immediately incurring duties or customs fees. FTZs aren’t some fringe designation- it’s like giving your supply chain a built-in rebate program.
Why Use a Foreign Trade Zone?
FTZs offer a range of benefits that can streamline your operations and significantly reduce costs:
Why does it matter now? With tariffs rising and reshoring accelerating, the FTZ isn’t just a nice-to-have, it’s a moat. And the Reno/Sparks area is ahead of the curve.
FTZs in Northern Nevada
Northern Nevada is uniquely positioned to benefit from FTZ advantages. With its strategic location and growing infrastructure, the region offers excellent logistics and distribution potential for businesses of all sizes. Companies operating in and around Reno, in particular, may find that leveraging an FTZ aligns perfectly with their growth and efficiency goals.
Who Should Consider Using an FTZ?
Any company involved in international trade might benefit from utilizing an FTZ. Industries that commonly take advantage of FTZs include:
Essentially, if your business is importing components, assembling products, and/or re-exporting goods, an FTZ could help streamline those processes and save your business money.
In addition to Zone #126, Northern Nevada boasts a myriad of benefits to businesses based here. Here’s how Reno/Sparks stacks up against other markets:
VS California: With the state’s high costs, sky-high land/lease rates, and its regulatory minefield, dozens of companies are left looking to relocate. Here in Northern Nevada, these companies are drawn to our lower costs, fast tracked- FTZ activation, and the ability to retain the same port-adjacent access.
VS Phoenix: Land is tightening in the Phoenix Valley, and on top of it, not all of that land is in-Zone. Here in Reno, there is still prime land available within Zone #126- especially in the Tahoe Reno Industrial Center.
VS Salt Lake City: Located much further inland away from major ports, and with the winter months consistently slowing down freight, Salt Lake City is losing its competitive edge. Meanwhile, Reno’s milder climate is a safer bet and retains its port-to-warehouse time to 1 day.
Want to Learn More?
FTZs aren’t just a tax tool- it’s a market edge that’s baked into the best industrial ground in the Reno/Sparks area. If you’re curious about how an FTZ could work for your business or are interested in exploring properties located within a Foreign Trade Zone, the team at Street Commercial Real Estate is here to help. We specialize in helping companies tap into the advantages of FTZs while finding the right space to grow and thrive.
