Note from the author: This research contained in this trend report does not reflect the full effect of the COVID-19 pandemic. Site Selection Group anticipates those trends to become more apparent in second quarter data.

Site Selection Group, a full-service location advisory, real estate and economic incentive services firm closely monitors national distribution center investment activity, as well as trends related to real estate, economic incentives and workforce. During the first quarter of 2020, announced distribution center activity in the United States created an estimated 14,403 jobs at 133 facilities by well-known companies such as Amazon.com, The Home Depot, Kroger and Johnson & Johnson. The table below shows several notable announcements.

Notable Distribution Center Announcements

Company Metro Area Capital Investment ($M USD) # of Jobs
Amazon.com Inc. Virginia Beach, VA $4.0 1,000
The Home Depot Inc. Dallas, TX $1.1 800
Ferrara Candy Co. Chicago, IL $100.0 500
The Kroger Co. Washington, DC $55.0 400
Johnson & Johnson Indianapolis, IN $110.0 300
Lidl Us LLC Atlanta, GA $100.0 270
SiCar Farms Ltd. & Co. McAllen, TX $12.0 250
Lowe's Companies Inc. Spartanburg, SC $100.0 150
Medline Industries Inc. Savannah, GA $70.0 150
Whirlpool Corp. Tulsa, OK $55.0 150
Wastequip LLC Tyler, TX $6.0 130
Newell Brands Inc. Shelbyville, IN $11.0 115
KaTom Restaurant Supply Inc. Sevierville, TN $12.6 100
ST Engineering Halter Marine and Offshore Inc. Gulfport, MS $10.0 100
Wastequip LLC Mount Sterling, KY $7.3 100
Abl Wholesale Distributors Inc. Salem, OH $13.9 83
DOT Foods Inc. Lake Havasu City, AZ $12.0 70
Allegiant Travel Co. Charlotte, NC $50.0 66
AXIS Logistica S.A. Jacksonville, FL $15.0 60
Gulfstream Aerospace Corp. Dallas, TX $35.0 50

Source: Conway Analytics

Larger markets remained active

Over the past quarter, distribution center operators have announced projects all across the country. There was substantial activity in larger markets like Southern California, Dallas and Atlanta, while mid-sized markets also remained active. The map below shows those metro areas that experienced the most activity.


Economic incentives continue to be meaningful to the distribution industry

The following table highlights notable economic incentive packages for distribution center projects. For these notable projects, economic incentive packages averaged 19% of the estimated project capital investment and were also clustered around large distribution-intensive markets.

Notable Distribution Center Economic Incentives Deals

Company Metro Area Incentive ($M USD) Investment ($M USD) New or Retained Jobs
United Parcel Service Memphis, TN $38.03 $216.60 25
The DeLong Co. Milwaukee, WI $20.80 $31.30 0
Amazon Atlanta, GA $19.25 $238.00 1,000
Nestle Clinton, IA $9.60 $140.00 73
The Kroger Co. Washington, DC $7.15 $0.00 400
Amazon Philadelphia, PA $4.50 $250.00 1,000
FedEx Corp. Indianapolis, IN $4.40 $1,603.00 288
Returns R US Chicago, IL $1.97 $0.00 44
Wastequip Mount Sterling, KY $1.90 $7.28 100
Clark Associates Madisonville, KY $1.50 $8.50 200
Groff Tractor Holdings Harrisburg, PA $1.09 $2.18 12
Chick-fil-A Atlanta, GA $0.65 $4.00 300
NFI Industries Indianapolis, IN $0.50 $49.63 90
KeHE Distributors Bloomington, IN $0.40 $11.47 60
Scariano Wholesale Foods Hammond, LA $0.25 $10.00 101
Affordable Solar Installation Albuquerque, NM $0.25 $0.00 21
Porter Pipe and Supply Co. Indianapolis, IN $0.21 $1.13 30
S Rays Louisville, KY $0.20 $0.46 38
H3C Enterprises Harrisburg, PA $0.17 $0.49 0
ScreenBroidery Indianapolis, IN $0.17 $1.69 24

Source: Incentives Monitor

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