While logistics and delivery (both inbound parts and outbound product) are a key factor, time and cost don't map linearly to distance. Rather than being exactly central, the optimal solve is often somewhat geographically central but leverages proximity to transport corridors, ports and other factors such as weather variability.
KCI isn't a central air hub and winter weather can disrupt flow. Being further south near an East-West hub like DFW can be better (or Houston if an Atlantic port is valuable). Or if bidirectional delivery is everything, base near a Super-Hub like Memphis (Fedex) or UPS WorldPort (Louisville, KY) and go all-in on reaching lower rate tiers with one preferred domestic delivery partner.
For high-automation physical plants, scale can tend to chunk into increments beyond which 'one double-size plant' isn't meaningfully cheaper than two 'single-size' plants. Then an optimal build-out end game can be East and West plants that are each one air-hop from all major metros on that coast and a one-day truck/rail hop from 50% of customers on that coast. If it's a rapid-turn tech product, Reno can work well - half-day road trip from bay area for outbound and a Pacific port for inbound (Stockton). I don't know the quick-turn PCB assembly biz but maybe basing across the street from Digi-Key's biggest distribution center is a 'checkmate' move that beats all other advantages?
While logistics and delivery (both inbound parts and outbound product) are a key factor, time and cost don't map linearly to distance. Rather than being exactly central, the optimal solve is often somewhat geographically central but leverages proximity to transport corridors, ports and other factors such as weather variability.
KCI isn't a central air hub and winter weather can disrupt flow. Being further south near an East-West hub like DFW can be better (or Houston if an Atlantic port is valuable). Or if bidirectional delivery is everything, base near a Super-Hub like Memphis (Fedex) or UPS WorldPort (Louisville, KY) and go all-in on reaching lower rate tiers with one preferred domestic delivery partner.
For high-automation physical plants, scale can tend to chunk into increments beyond which 'one double-size plant' isn't meaningfully cheaper than two 'single-size' plants. Then an optimal build-out end game can be East and West plants that are each one air-hop from all major metros on that coast and a one-day truck/rail hop from 50% of customers on that coast. If it's a rapid-turn tech product, Reno can work well - half-day road trip from bay area for outbound and a Pacific port for inbound (Stockton). I don't know the quick-turn PCB assembly biz but maybe basing across the street from Digi-Key's biggest distribution center is a 'checkmate' move that beats all other advantages?
Logistics strategy is fun!