Cold Storage Facility Construction Doubles for 2006 with Over $880 Million in Spending Projected

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Researched by Industrial Info Resources (Sugar Land, Texas). A recent survey of Industrial Info’s Project Database shows a projected 11 million square feet of cold storage warehousing capacity is projected to begin construction in 2006. This is nearly double the amount of spending reported for 2005. A total of 48 grassroot and facility cold storage expansion projects are planned for 2006, totaling approximately $887 million in capital spending in food distribution warehouses, manufacturing and the beverage industry.

As reported in Industrial Info’s last survey of the cold storage warehousing industry (For details see Industrialinfo.com's U.S. Cold Storage Warehouse Construction Report - 5.9 Million Square Feet of Capacity Planned for 2005) merger madness in the Food & Beverage Industry began to settle down. The new mega-companies built distribution and warehouse facilities all over the country to consolidate distribution and streamline logistics. New construction, consolidation, and third party outsourcing of storage and distribution appeared to be the answer for the logistical nightmare created when large companies that handle multiple brand names come together.

Today, many of the larger projects are planned by existing foodservice companies like SYSCO and grocery distributors like ALDI and Associated Grocers who are looking to continue expansion and grow their business.

Ten of the top projects planned for 2006 are going to be built by these types of companies. Philadelphia Regional Produce Market is planning to construct a new produce terminal this year in Philadelphia. Wal-Mart is planning three new large food distribution centers in various parts of the country. SYSCO plans two new projects for 2006, and plans to announce more locations during the calendar year. ALDI has two new locations on the drawing board as well.

Click on the image at right to view the Top 10 Cold Storage Projects in the country.

Beer distributors are looking into building or acquiring new locations as well. Many beer wholesalers are running out of room at existing locations and are in need of additional space to continue to serve existing markets and handle new clients. Clare Rose plans to build a new beer distribution facility in New York along with Anheuser-Busch of New York. Other projects are planned by Soave Enterprises, Mussetter Distributing, Hensley & Company, Missouri Eagle and Anheuser-Busch Sales of Tulsa.

In the United States, 26 new cold storage warehouses are currently under construction, and another 48 are in various stages of development scheduled to be complete or start construction during the remaining 2006 calendar year. There are currently 808 cold storage and distribution centers operating in North America and an increase in demand for frozen foods and frozen ready meals are predicted to continue to drive a significant amount of future food sales and storage 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. Contact Industrial Info’s Member Center at 1-800-762-3361 for details.

Industrial Info Resources (IIR) is a Marketing Information Service company that has been doing business for over 23 years. IIR is respected as the leader in providing comprehensive market intelligence pertaining to the industrial processing, heavy manufacturing, and energy-related industries throughout the world.