Pharma Firms Building
More Than Sales Force

In South Carolina, Illinois-based pharmacy chain Walgreens Co. will be investing $175 million in a 700,000-sq.-ft. (65,030-sq.-m.) distribution center on 110 acres (45 hectares) in Anderson County's Alliance Park that is expected to employ 450 people once it's at full steam in 2007. The facility will serve up to 250 stores in an eight-state region, and its outfitting with the latest technology explains the high dollar amount.
        "Anderson County has been at the top of the list throughout the nearly two-year site search," said Jodi Dalton, Walgreens' senior real estate manager, at the January 2004 announcement of the company's 13th distribution center.
        Backing up the pharmaceutical distribution chain, Israel-based Taro Pharmaceutical Industries drove its global real estate portfolio over the 1 million-sq.-ft. (92,900-sq.-m.) mark with the $18-million purchase in February 2004 of a 315,000-sq.-ft. (29,264-sq.-m.) DC formerly occupied by Volkswagen in South Brunswick. The center will begin with 200 employees, but employment could double by 2005.
        The industry's spending on distribution extends to pharmaceutical services. That sector's largest company, AmerisourceBergen, is investing $40 million in a 280,000-sq.-ft. (26,012-sq.-m.) facility in Kansas City, Mo., that will consolidate distribution operations and a Midwest headquarters. One of seven regional headquarters, the facility will create 180 jobs.

The DC Highlight Reel

Here's a quick rundown of other North American DCs of note:
        Sporting goods company Cabela's operates stores so big it's hard to know where the DC ends and the retail begins. Based on the sparkling success of its huge complex in Kansas City, Kan., the Nebraska-based company is embarking on a similar $117-million project near Wheeling, W.V., that will see some $93 million in help from state coffers over 10 years. However, the state is expected to recoup that amount in about six years.
        According to published reports, in its application for tax increment financing, Cabela's projected an additional $100 million in private investment around its 110-acre (45-hectare) site, which will include a 1.2-million-sq.-ft. (111,480-sq.-m.), $47-million DC. The company operates similar DCs in Sidney, Neb.; Prairie du Chien, Wis. and Mitchell, S.D. The West Virginia project will be funded in part by $80 million worth of bonds, floated by the company and reimbursed over time by TIF. The state package includes a $13-million highway interchange, as well as a $35-million economic development grant.

See the SITES American Trucking Associations www.trucking.org ProLogis ir.prologis.com Association for Automatic Identification and Mobility www.aimglobal.org RFID Journal www.rfidjournal.com A.T. Kearney www.atkearney.com Navis www.navis.com

        A 1.2-million-sq.-ft. (111,480-sq.-m.) project is finally under way on 300 acres (121 hectares) in Wallkill, N.Y., for Wal-Mart. Expected to open in spring 2005, the $48.5-million project, first announced in July 2002, was put on hold by the company as the need for it temporarily waned. But now the time is right for the center, which benefits from the state's Empire Zone incentives, to serve its New York and New England stores. The 700-employee payroll could quickly grow to 1,000.
        TIF also has been key to a $27-million customized DC from Performance Food Group in Kendallville, Ind. The search involved three cities in the Midwest, two in Indiana. The facility and its 288 employees will serve the company's growing roster of casual dining restaurant chain customer, and will be the company's eighth customized DC. According to Dave Koenig, executive director, Region IIIA Economic Development District and Regional Planning Commission, the convergence of the Indiana East-West tollway and I-69 nearby played a major role. Helping as well will be a package of local and state incentives valued at more than $1.3 million.
        Because of its strong food and manufacturing base, Southern Idaho has its own DC cluster going full speed ahead. Recent projects include a 75,000-sq.-ft. (6,968-sq.-m.) expansion from yet another Wisconsin-based company, WOW Logistics, in Jerome. That brings the company's facility to over 300,000 sq. ft. (27,870 sq. m.), with the potential to expand by the same increment should demand keep growing. Henningsen's Cold Storage has recently expanded in Twin Falls, the region's largest city, which has also seen a DC consolidation from Eddy's Bread. And Solo Cup has also invested in a Twin Falls expansion, which the company is crediting with reducing its shipping and freight costs in the region by 45 percent.