Industrialinfo.com's U.S. Cold Storage Warehouse Construction Report - 5.9 Million Square Feet of Capacity Planned for 2005

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). A recent survey of Industrialinfo.com's Project Database shows a projected 5.9 million square feet of cold storage warehouse capacity will be constructed between now and the end of 2005. A total of 28 grassroot and facility expansion projects are planned for next year, totaling approximately $400 million in capital spending in the food and beverage cold storage warehouse and distribution sector.

Click on the image at right to view the 2005 U.S. Cold Storage Warehouse Capital Spending by State Chart.

A recent study released from the National Agriculture Statistic Service in Washington, D.C. stated that the country currently has about 1.6 billion cubic feet of cold storage space, with over 60 percent of it being occupied.

As the merger madness in the food and beverage industry settled down during the last few years, the new mega companies found themselves with distribution and warehouse space spread out all over the country. New construction, consolidation, and third-party outsourcing of storage and distribution appears to be the answer for the logistics nightmare created when large companies handling multiple brand names come together.

As a result of the Del Monte - H.J. Heinz merger last year, the company is planning to construct three new 800,000 square foot distribution centers in Birmingham, Alabama, Grand Prairie, Texas, and Rochelle, Illinois. This effort should help the company improve its product distribution logistics.

Other highlights for 2005 include a new 900,000 square foot perishable foods storage warehouse located in Sterling, Illinois, by mass-retailer Wal-Mart Stores Incorporated (NYSE: WMT) (Bentonville, Arkansas). In addition, leading cold storage provider Millard Refrigerated Services, Incorporated (Omaha, Nebraska) will build a new 620,000 square foot distribution warehouse in Allentown, Pennsylvania.

Two other large projects include foodservice provider, SYSCO Corporation(NYSE: SYY) (Houston, Texas) constructing a 500,000 square foot project in Denver, Colorado, and grocery store chain, ALDI Incorporated (Batavia, Illinois) constructing a 500,000 square foot facility in Frederick, Maryland. Privately held, Preferred Freezer Services Incorporated (Jersey City, New Jersey) is also planning a new 225,000 square foot distribution warehouse in Newark, New Jersey.

Jay Brunson, Industrialinfo.com’s Food & Beverage industry manager stated, "Typically, when warehouse space becomes 80 to 85 percent full, owners will evaluate expanding capacity or building new warehouses to accommodate growth. Transportation and distribution of product are two of the most costly issues facing food and beverage manufacturers and wholesalers."

In the United States, twenty-eight new cold storage warehouses are under construction, and another thirty-one are in various stages of development. There are 747 cold storage and distribution centers operating in the U.S. Increase in demand for Frozen foods and frozen ready meals are predicted to drive a significant amount of future food sales growth.

For more information on these plants, as well as 35,959 other industrial plant sites in the U.S., visit Industrialinfo.com's Online Plant Database. The U.S. Online Plant Database is available by region, state, and zone, and features frequent updates, mapping and driving directions, two key plant management contacts, physical location, phone numbers, and more.