Grassroot Projects Dominate U.S. Distribution & Warehouse Q4 Kickoffs

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Written by Danny Levin, Deputy Editor for IIR News Intelligence (Sugar Land, Texas)

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Summary

Industrial Info Resources is tracking $7.8 billion worth of U.S. distribution and warehousing projects planned to begin construction in the fourth quarter, with 80% of the investment attributed to grassroot projects.

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U.S. Distribution & Warehouse Project Kickoffs

According to Industrial Info Resources data, there is $7.8 billion worth of U.S. distribution and warehousing projects planned to begin construction in the fourth quarter, with 80% of the investment attributed to grassroot projects. Two high-dollar projects drive the project activity.

On August 27, Gov. Brian Kemp (R-Georgia) announced Walmart will build a $1.3 billion grassroot fulfillment center in Carnesville, Georgia, in Franklin County. The 1.5 million-square-foot automated fulfillment center is designed to expand the company's same-day and next-day shipping capabilities across the U.S. Construction is expected to begin later this year.

"As customer expectations continue to evolve, investments like our new fulfillment center in Carnesville help us deliver the speed, convenience, and reliability customers count on," said Karisa Sprague, senior vice president of supply chain at Walmart U.S.

Walmart also plans to begin a $45 million modernization of its Cullman Distribution Center 6006 in Alabama, which would entail renovating an existing area and installing new robotics and updated storage systems to increase local distribution operations. Industrial Info Resources offers more information on the Carnesville and Cullman projects in its Global Market Intelligence (GMI) Industrial Manufacturing Project Database, where readers can find detailed information--including construction schedules, investment values and necessary equipment.

Meanwhile, preliminary work on the highest-valued project is underway, although the start of vertical construction is murky due to political and community pushback. Burlington Northern Santa Fe (BNSF) plans to build out its $3.2 billion Logistics Park Phoenix rail complex in Wittman, Arizona, in Maricopa County.

BNSF has begun installing electrical infrastructure and is continuing site grading and staging rail materials, with track laying expected to begin in early fall, according to the company website, although that work started despite not having full approval for local land use. The Maricopa County Board of Supervisors denied a request to change the land-use designation for the project's roughly 4,000-acre site. In addition, local residents have expressed concerns.

Maricopa County has approved a dust-control permit for earthmoving, and BNSF is citing a federal law that allows railroads to perform track and facility construction without local government approval.

While those two grassroot projects account for more than half of the total investment value of fourth-quarter distribution and warehousing project activity, another high-dollar project is attributed to a plant expansion in the Pharma-Bio space.

Novartis plans to begin adding a new building at its site in Durham, North Carolina, for the production of Zolgensma, the company's commercial gene therapy designed to treat pediatric spinal muscular atrophy. The new space also will allow for the production of other gene-therapy products. View more project information here.

Key Takeaways

• According to Industrial Info Resources, grassroot projects dominate $7.8 billion worth of U.S. distribution and warehousing projects planned to begin construction in the fourth quarter.

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