Automation, Expansions Dominate U.S. Warehouse Project Space

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

U.S. industrial developers more often are prioritizing warehouse and distribution space with reliable power, existing infrastructure and room for automation technology.

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Developers Opt for Expansions

With construction costs on the rise and the demand for automated technology skyrocketing, companies looking to add warehousing and distribution capacity across the U.S. are opting to expand their existing infrastructure, rather than construct entirely new facilities. Industrial Info Resources is tracking more than $4.6 billion worth of active and proposed warehousing and distribution projects across the U.S. that currently are scheduled to begin construction in the third quarter, with more than half of the project count attributed to expansions, upgrades or renovations to existing assets.

According to Industrial Info Resources data, the Great Lakes region accounts for 17 third-quarter project kickoffs, more than any other region, due in part to warehousing and distribution needs from automakers. But one of the most notable automotive developments can be found down South: Yamaha Motor Company Limited's expansion of its all-terrain vehicle distribution center in Newnan, Georgia, which will more than double the existing 500,000-square-foot space to make way for automation and robotics equipment, among other features.

The expansion is part of a broader effort by Yamaha to move its U.S. headquarters from California to Kennesaw, Georgia, which is about 60 miles north of Newnan. Industrial Info Resources offers more information on the Newnan expansion in its Global Market Intelligence (GMI) Industrial Manufacturing Plant and Project databases, where readers can find details--including construction schedules, investment values and necessary equipment--in a plant profile and project report.

Other automotive-related manufacturers planning to add automation technology to their warehousing and distribution facilities include Continental Tire North America Incorporated, a subsidiary of Continental AG, which is preparing to construct another warehouse at its tire-production complex in Mount Vernon, Illinois. The company said in a press release that the "highly automated finished goods warehouse" will be able to store up to 500,000 passenger-car tires.

Continental expects the project will expand the existing, 3.35 million-square-foot complex by about 10%. Readers can learn more from a plant profile and a detailed project report.

The addition of automated and robotics technology at existing or otherwise already-developed sites is a growing trend in the U.S. warehousing and distribution market. Stephanie A. Rodriguez, an executive at Colliers International, recently told Utility Dive that "industrial occupiers are increasingly prioritizing locations with reliable power, shorter utility lead times and existing infrastructure."

"From the developer's standpoint, that market demand means certain sites--particularly modern big-box facilities of 200,000 square feet or larger in industrial hubs--are the most attractive," Utility Dive concludes.

By the Numbers

• More than $4.6 billion: Total value of U.S. warehousing and distribution projects set to kick off in the third quarter
• 17: Total number of warehousing and distribution projects set to begin construction in the Great Lakes region in the third quarter

Some Grassroot Projects Still Sprouting

Despite the slowdown in construction for entirely new warehousing and distribution capacity, a few "speculative" projects--space built by developers without a pre-leased tenant--are deemed likely by Industrial Info Resources to begin construction within the coming quarter. These include CBRE Group Incorporated's warehouse in Plainfield, Illinois, and Jones Development Company's two-building warehouse in Olathe, Kansas.

Trammell Crow Company, a subsidiary of CBRE, says its site will offer easy access to both Interstate 55 and I-80, two of the Chicago metro area's major thoroughfares. Readers can learn more about these projects from detailed reports on the Plainfield and Olathe developments.

Still, big-box retailers like Amazon.com are opting to spruce up their existing warehouses and distribution centers when possible. Amazon is preparing for a renovation of its fulfillment center in Greenfield, Indiana, which involves furnishing a vacant, 1 million-square-foot building and constructing a smaller, 520-square-foot space to boost regional operations. More information can be found in a detailed plant profile and project report.

The Industrial Info Resources GMI Project and Plant databases offer a full list of detailed reports for projects mentioned in this article, and a full list of related plant profiles.

Industrial Info Resources also offers a full list of reports for active and proposed warehousing & distribution projects across the U.S. that currently are scheduled to begin construction in the third quarter.

Key Takeaways

• Companies across the U.S. are opting to expand their existing storage space, rather than construct entirely new facilities.
• The addition of automated and robotics technology at existing or otherwise already-developed U.S. sites is a growing trend.

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About Industrial Info Resources
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 verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).