North American Distribution and Supply Chain Projects Decreased in April

North American Distribution and Supply Chain Projects Decreased in April

Time Stamp: May 5, 2023 11:12 AM
Source Node: 2630841

Major supply chain construction projects declined in North America in April 2023, with only 167 new major projects  planned for the distribution and supply chain sector for the month, a 19% drop compared to March 2023. The data comes from IMI SalesLeads, which gathers information on on companies planning significant capital investments such as new construction, expansion, relocation, equipment modernization and plant closings in industrial facilities. Of the 167 tracked projects, 153 were industrial warehouses, and just 14 were plans for distribution/fulfillment centers.

New construction led the way with 86 planned projects. Expansions were the second most common type of venture during April 2023, followed by renovations or equipment upgrades. Eight of the distribution and supply chain sector projects were facility closures.

The state with the most planned distribution and supply chain projects in April 2023 was Texas with 15. California came in second place with 13 projects, followed by Florida with 12. Both New York and Pennsylvania had nine planned projects during April 2023.

IMI SalesLead said five of the distribution and supply chain facility projects had an estimated value of at least $100 million. The largest project during April 2023 was by FedEx, which invested $420 million to construct a warehouse facility in Romulus, Michigan, expected to be completed by early 2025, and allowing the organization to consolidate its regional operations.

The second biggest project for the North American market came from an Aerospace component manufacturer who will spend $255 million to construct an 845,000-square-foot warehouse, office and maintenance facility in Oklahoma City, Oklahoma. At this time, the organization is still waiting for the project to be approved.

California will also host another major project, with a production studio planning a 1.3 million-square-foot warehouse, office and sound stage in Santa Clarita.

Michigan and Ohio will each house a $100 million project. An automotive company is planning a 280,000-square-foot manufacturing center in Auburn Hills, Michigan while a poultry processor will construct a 200,000-square-foot distribution facility in Fairfield, Ohio. The Ohio project is still pending approval, but construction on the Michigan project is expected to start during Summer 2023.

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