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Released December 16, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--As the e-commerce market continues to boom, Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington) and other companies are building out warehousing and distribution space across the U.S. Industrial Info is tracking $9 billion worth warehousing and distribution projects under construction in the U.S, with nearly 25% of the activity attributed to Amazon.
Data from the U.S. Census Bureau show a preliminary estimate of U.S. retail e-commerce sales for third-quarter 2024, adjusted for seasonal variation but not for price changes, was $300.1 billion--up from $287.5 million in the first quarter, and an increase of 7.4% compared with third-quarter 2023.
In addition, e-commerce sales accounted for 16.2% of total retail sales in the third quarter of this year.
Amazon is responsible for $2 billion in warehousing and distribution projects across the U.S., buoyed by the buildout of fulfillment centers--facilities that help process orders and ship products directly to end customers, ensuring deliveries of online goods from retailers to buyers.
The largest of Amazon's projects is a $500 million grassroot fulfillment center in Niagara, New York, which will utilize robotics to automate the flow of inventory and help employees pick, pack and ship customer orders. According to television station WGRZ, in September, the company and Niagara County leaders provided an update on the project, which kicked off earlier this year: 20% of the 3.1 million-square-foot facility's five-story structure was complete. Amazon expects the facility will be operational in 2026. Layton Construction Company (Sandy, Utah) is performing general contracting services. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here to read the project report.
Other robotic fulfillment centers being constructed for Amazon include a five-story center in Virginia Beach, Virginia. Meanwhile, a five-story, 800,000-square-foot building in Bristol, Indiana will support delivery of smaller items, such as books, electronics and other consumer goods. Subscribers can read more information on the Virginia and Indiana projects, both of which are expected to wrap up by the end of 2025.
Earlier this year, Amazon invited county officials and media on a tour of the Bristol facility; television station ABC 57 quoted Kyle Degliulio, Amazon's senior manager of economic development policy, as saying, "all of the robotics that we have in this building are there to assist our employees, not to replace them." He said robots will assist with the inbound receiving of inventory and the outbound fulfilment of packages.
The Bristol facility is what's known as a first-mile facility, where packages are prepared for delivery to then be transported to middle-mile and last-mile facilities. Last-mile refers to an order's final stop before delivery.
Industrial Info is tracking several last-mile delivery projects underway for Amazon, including a $80 million facility in Mesa, Arizona, as well as a $12 million renovation in Bakersfield, California. Click here to read more information on the projects, both of which are expected to wrap up by the end of 2025.
Click here for a full list of Amazon's warehousing and distribution projects under construction.
But the highest valued project belongs to retailer Macy's Incorporated (New York, New York) and its 1.4 million-square-foot grassroot fulfillment center in China Grove, North Carolina. Macy's initially expected to invest $584 million when the project started in 2022, but a company spokesperson told the Charlotte Business Journal in April the project investment now is up to $640 million, to "outfit the facility with cutting-edge technology and ensure China Grove will operate with maximum efficiency." Industrial Info is tracking the project with a completion date of mid-2025. Click here to read the project report.
Food and beverage warehousing is another driver of project activity under construction, including a campus in Birmingham, Alabama being built for an independent bottler (the Coca-Cola Bottling Company) that supplies The Coca-Cola Company (NYSE:KO) (Atlanta, Georgia). The latter does not own an interest in the bottling company. This will serve as the bottler's new headquarters, which, in addition to a warehousing and distribution center, also will include a sales center, offices and a customer call center. Click here to read more information on the three-year project that kicked off in October.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
Click here for a full list of warehousing and distribution projects underway in the U.S.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Data from the U.S. Census Bureau show a preliminary estimate of U.S. retail e-commerce sales for third-quarter 2024, adjusted for seasonal variation but not for price changes, was $300.1 billion--up from $287.5 million in the first quarter, and an increase of 7.4% compared with third-quarter 2023.
In addition, e-commerce sales accounted for 16.2% of total retail sales in the third quarter of this year.
Amazon is responsible for $2 billion in warehousing and distribution projects across the U.S., buoyed by the buildout of fulfillment centers--facilities that help process orders and ship products directly to end customers, ensuring deliveries of online goods from retailers to buyers.
The largest of Amazon's projects is a $500 million grassroot fulfillment center in Niagara, New York, which will utilize robotics to automate the flow of inventory and help employees pick, pack and ship customer orders. According to television station WGRZ, in September, the company and Niagara County leaders provided an update on the project, which kicked off earlier this year: 20% of the 3.1 million-square-foot facility's five-story structure was complete. Amazon expects the facility will be operational in 2026. Layton Construction Company (Sandy, Utah) is performing general contracting services. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here to read the project report.
Other robotic fulfillment centers being constructed for Amazon include a five-story center in Virginia Beach, Virginia. Meanwhile, a five-story, 800,000-square-foot building in Bristol, Indiana will support delivery of smaller items, such as books, electronics and other consumer goods. Subscribers can read more information on the Virginia and Indiana projects, both of which are expected to wrap up by the end of 2025.
Earlier this year, Amazon invited county officials and media on a tour of the Bristol facility; television station ABC 57 quoted Kyle Degliulio, Amazon's senior manager of economic development policy, as saying, "all of the robotics that we have in this building are there to assist our employees, not to replace them." He said robots will assist with the inbound receiving of inventory and the outbound fulfilment of packages.
The Bristol facility is what's known as a first-mile facility, where packages are prepared for delivery to then be transported to middle-mile and last-mile facilities. Last-mile refers to an order's final stop before delivery.
Industrial Info is tracking several last-mile delivery projects underway for Amazon, including a $80 million facility in Mesa, Arizona, as well as a $12 million renovation in Bakersfield, California. Click here to read more information on the projects, both of which are expected to wrap up by the end of 2025.
Click here for a full list of Amazon's warehousing and distribution projects under construction.
But the highest valued project belongs to retailer Macy's Incorporated (New York, New York) and its 1.4 million-square-foot grassroot fulfillment center in China Grove, North Carolina. Macy's initially expected to invest $584 million when the project started in 2022, but a company spokesperson told the Charlotte Business Journal in April the project investment now is up to $640 million, to "outfit the facility with cutting-edge technology and ensure China Grove will operate with maximum efficiency." Industrial Info is tracking the project with a completion date of mid-2025. Click here to read the project report.
Food and beverage warehousing is another driver of project activity under construction, including a campus in Birmingham, Alabama being built for an independent bottler (the Coca-Cola Bottling Company) that supplies The Coca-Cola Company (NYSE:KO) (Atlanta, Georgia). The latter does not own an interest in the bottling company. This will serve as the bottler's new headquarters, which, in addition to a warehousing and distribution center, also will include a sales center, offices and a customer call center. Click here to read more information on the three-year project that kicked off in October.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
Click here for a full list of warehousing and distribution projects underway in the U.S.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
