Outlook strong for new distribution facility construction
Strategically located distribution centers help to alleviate shortages of labor in transportation and facilities.
This year’s FE Annual Plant Construction Survey—which covers projects planned, started or completed in 2021—reveals the lingering effects of the COVID-19 pandemic. There remain issues with supply chains and processing plants, mostly caused by labor shortages and changing consumer buying habits. Processors and distributors have responded by building new distribution facilities and plants outfitted by the latest automation.
Though the number of distribution centers (DCs) and warehouses is down a bit from 2020, it’s still the third highest number reported in the last four years. However, the number of new projects compared to renovations and expansions is a higher percentage of overall projects than it was in 2020. For more details on the numbers and trends, turn to our cover story in this issue.