The rapid growth of e-commerce, led by Amazon, is fueling a significant increase in the construction of warehousing and distribution facilities across the United States. According to market research firm Industrial Info Resources, approximately $9 billion in warehousing and distribution projects are currently underway, with Amazon contributing 25% of this activity.
Amazon’s share of the total represents $2 billion worth of projects, largely driven by the development of advanced fulfillment centers designed to enhance order processing, inventory management, and shipping efficiency.
The largest of Amazon’s current projects is a $500 million fulfillment center in Niagara, New York, scheduled to open in 2026. The facility will integrate robotics and automation to streamline inventory processes and assist workers with order picking, packing, and shipping.
Other significant Amazon projects include:
- A five-story robotic fulfillment center in Virginia Beach, Virginia.
- An 800,000-square-foot, five-story facility in Bristol, Indiana.
The Bristol facility, a “first-mile” center, will focus on smaller items such as books and electronics, preparing shipments for middle-mile and last-mile distribution. Both projects are expected to be completed by late 2025.
In addition to large-scale fulfillment centers, Amazon is also investing in last-mile delivery infrastructure. Projects include an $80 million facility in Mesa, Arizona, and a $12 million renovation in Bakersfield, California. These facilities aim to ensure timely and efficient delivery of packages to customers.
While Amazon leads the warehousing boom, other companies are also contributing to the trend. Macy’s Inc. is currently constructing a $640 million, 1.4-million-square-foot fulfillment center in China Grove, North Carolina. Initially budgeted at $584 million in 2022, the project’s cost increased to incorporate advanced technologies aimed at improving operational efficiency. Macy’s expects the facility to be completed by mid-2025.
The food and beverage sector is also driving demand for new warehousing and distribution facilities. A notable project is underway in Birmingham, Alabama, where Coca-Cola Bottling Company is constructing a new campus to serve as its headquarters. The development will include warehousing and distribution operations, office space, a sales center, and a customer call center. Construction began in October 2023 and is expected to take three years to complete.
The surge in warehousing construction reflects ongoing efforts by retailers and manufacturers to enhance supply chain efficiency and meet growing consumer demand in the e-commerce sector.
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