Food & Beverage Companies to Invest $2.2 Billion in Warehouse and Distribution Centers

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Researched by Industrial Info Resources (Sugar Land, Texas)--Industrial Info is currently tracking more than $2.2 billion in expenditures in the North American Food & Beverage Industry that are specifically aimed at warehouse and distribution centers. This figure includes both grassroot construction and expansions of existing warehouses. There are more than 90 capital projects under way that are scheduled to be completed by the end of 2012. Project footprints range from as little as 12,000 square feet to 2 million square feet. The scale of project investment values ranges from $1 million to more than $100 million.

The majority of projects being developed will feature refrigerated space, including freezer and cooler space.

More than 60 of the projects being tracked are facilities that will be built on greenfield sites and account for the lion's share of the overall expenditures, with an estimated value of over $2.1 billion.

The Southwest market region ranks highest in terms of the number of projects being developed, with 14 new facilities being constructed and the expansion of four existing facilities. The Northeast and Great Lakes regions round out the top three regions with 15 and 13 projects, respectively.

Forty-one projects valued at more than $1.3 billion are currently under construction, while nearly 10 of the overall 92 project are in the site study or site selection phases.

One of the largest projects being proposed is by a regional grocer with plans to construct a 2 million-square-foot distribution center in Southern California.

Expenditures are being driven by capacity expansions, growth in regional markets, and the need to improve logistic services. Companies such as Sysco Corporation (NYSE:SYY) (Houston, Texas), Target Corporation (NYSE:TGT) (Minneapolis, Minnesota), privately held U.S. Foodservice (Rosemont, Illinois), United States Cold Storage Incorporated (Voorhees, New Jersey) and Germany-based Aldi (Essen, Germany), are among a number of food and beverage companies that are investing in distribution centers and warehouse facilities.

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