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Released February 02, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. consumers continue to spend on goods, especially those delivered through e-commerce, and as such, companies are building and expanding shipping, fulfillment and distribution facilities to meet demand. Industrial Info is tracking $17.5 billion in warehousing and distribution projects that are under construction in the U.S., with e-commerce giant Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington) accounting for about one-third of the spend.

Data from the U.S. Census Bureau shows a preliminary estimate of U.S. retail e-commerce sales for third-quarter 2023, adjusted for seasonal variation but not for price changes, was $284.1 billion--an increase of 2.2% from the second quarter ($277.8 billion) and 7.6% from third-quarter 2022. Further, e-commerce sales in the third quarter accounted for an estimated 15.6% of total retail sales, up from 14.8% year-over-year.

E-commerce giant Amazon accounts for more than 60 warehousing and distribution projects, worth $5.5 billion, that are under construction in the U.S.

This includes its $512 million Gates Fulfillment Center in New York, which features 2.6 million square feet of space that will expand regional fulfillment and distribution operations. The project originally kicked off in July 2021 and, after a construction delay due to supply-chain issues, is now on track for completion in March. Two other Amazon projects also are expected to wrap up in March: the $300 million Charlton Warehouse/Distribution Center in Massachusetts, a 2.8 million-square-foot, multi-level facility, and the $200 million Alcoa Distribution Center in Tennessee. The Alcoa facility will be used to pick, pack and ship smaller customer items such as books, electronics and consumer goods. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can read more information on the New York, Massachusetts and Tennessee projects.

While distribution/fulfillment centers pick, pack and ship orders, delivery stations are an order's final stop before delivery. Amazon is at work on building an approximately 720,000-square-foot last-mile station in Mesa, Arizona, to support the company's delivery operations in the area. Click here for the project report.

Ryan Companies US Incorporated (Minneapolis, Minnesota) is providing general contracting services for the project, in addition to other efforts from Amazon. For more information on projects in involving Ryan Companies, see January 30, 2024, article - Ryan Companies US Involved in $3.5 Billion Worth of Projects.

Other companies also are moving to keep up with demand for consumer goods, including the U.S.' second-largest e-commerce company: Walmart Incorporated (NYSE:WMT) (Bentonville, Arkansas). Walmart expects construction of its $100 million grassroot fulfillment center in Greencastle, Pennsylvania will wrap up in June. The new 1.5 million-square-foot facility will utilize state-of-the-art automation technology to provide customers with next- or-two-day shipping. Clayco Construction Company (Chicago, Illinois) is providing general contracting services. Click here for more information.

Meanwhile, The Home Depot Incorporated (NYSE:HD) (Atlanta, Georgia) is building a 52,000-square-foot last-mile distribution center in Herkimer, New York, which will serve as a transportation hub for online orders. Construction is expected to wrap up in April. Click here to read the project report.

Industrial Info also is tracking projects from major delivery companies, such as FedEx Corporation (NYSE:FDX) (Memphis, Tennessee), aiming at boosting their network. FedEx is leasing 415,000 square feet of existing distribution center space in Georgia from medical equipment manufacturer Medline Industries Incorporated (Northfield, Illinois). The new distribution operation is near the Port of Savannah, which will allow FedEx to better handle packages shipped by e-commerce customers. Evans General Contractors (Savannah, Georgia) is providing general contracting services for the project, which is expected to wrap up in April. Click here for more information.

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.

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).

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