Of the couple dozen major logistics facility investments tracked in Oregon by Site Selection magazine’s Conway Projects Database over the past two years, most are located in the Greater Portland metro area. But a spot on the periphery of that region may pack the most punch.
Planned for nine facilities at full build-out, Scannell Properties’ 100-plus-acre Scannell Logistics Park in Salem, about 50 miles south of Portland, last spring welcomed a 918,680-sq.-ft. build-to-suit facility for Dollar General. The facility will serve the Pacific Northwest and bordering states. Construction is expected to be complete in June 2025, said a Scannell press release.
“We’ve been expanding our developments in the Pacific Northwest for several years now, but it’s no secret, finding large units of land along the I-5 corridor is tough. That is why we are excited about Scannell Logistics Park in Salem,” said Jake Kurth, development manager at Scannell Properties. “Dollar General is the perfect user to kick off the park, and we couldn’t be more thrilled for Dollar General and the City of Salem.”
“Scannell Logistics Park is a great location for office warehouse, manufacturing, cold storage, and fulfillment centers.,” said Tim Elam, managing director for Scannell, noted the site’s suitability for manufacturing and cold storage as well as distribution because of its proximity to I-5 and what he called the Salem area’s “strong labor analytics.”
Construction is now complete at Do it Best’s expanded distribution and office complex in Woodburn, Oregon, where the company anticipates complete outfitting and automation will be complete by late 2024 or early 2025.
Photo courtesy of Perlo Construction and Do it Best
If Dollar General was the kick-off, football season in 2023 was the perfect time for Gensco to execute a long pass play from scrimmage. Scannell announced in November that the Washington-based HVAC manufacturer and distributor will occupy a 479,000-sq.-ft. facility at the park that comes with a $55 million investment and 50 new jobs — a job creation total that could expand to as many as 100 jobs in the first year, according to a report by the Salem Reporter. “The Salem location was chosen for its proximity to the freeway, as well as Gensco’s success working with the city of Salem on past projects,” the news site reported. The larger area, known as Mill Creek Corporate Center, has also welcomed an Amazon fulfillment center.
Building to Support Others Also Building
Another logistics sweet spot is Woodburn, located between Salem and Portland. That’s where Indiana-based hardware, lumber, and building materials buying cooperative Do it Best is expanding its distribution center to support member growth along the West Coast. The cooperative last February announced it has committed to $100 million in infrastructure investments to support its members’ needs. The Fort Wayne-based organization reported $4.8 billion in sales during its 2023 fiscal year.
“We’re building out our capacity within our warehouse network, beginning with our Woodburn distribution center,” said Do it Best Vice President of Logistics Tim Miller. The co-op is also increasing work and office space for their teams in both the warehouse and their regional lumber office as the company “gears up for additional growth in hardlines and lumber and building materials.”
The Woodburn project will add 20 jobs to a payroll of 130 and is supported by incentives from Business Oregon’s Governor’s Strategic Reserve Fund.
“Construction for the warehouse and office expansion in Woodburn is complete,” says Do it Best spokesperson Allison Meyer, noting that the organization has partnered with workforce development organizations like WorkSource Oregon. “We are now in the process of outfitting the spaces. We anticipate the project to be complete by the end of 2024 or early 2025. Sales growth in the Northwest has been strong and we expect that to continue. The expansion will help increase inventory capacity and sales.
“Once the expansion and automation is complete, the Woodburn, Oregon, distribution center will be our most advanced in the network,” adds Tim Miller. “Our partnership with Business Oregon and the City of Woodburn was instrumental in this expansion.”
Proof that major semiconductor investments have spinoff is evident in Cornelius, located in the western portion of the Portland metro area right next door to where Intel is expanding its operations in Hillsboro. Rinchem Company in summer 2023 opened a 72,000-sq.-ft. hazmat warehouse there on a site of just over 10 acres. As with Do it Best, the company is expanding its network of chemical storage facilities due to customer demand — in this case, the boom in semiconductor projects and all the supply chain investments that go with them. “This strategic location allows us to provide unparalleled support to chemical and semiconductor manufacturers in the region,” said Matt Jensen, Rinchem’s vice president of global warehousing.
Rinchem’s Cornelius warehouse is designed to meet the highest safety standards and comply with all regulatory requirements. The company’s commitment to excellence and expertise in managing complex supply chains positions Rinchem as a trusted partner for chemical and semiconductor manufacturers.
“The Pacific Northwest is a market we’ve identified as a strategic expansion location to stock many more products than we do today, benefiting more local customers.”
— Barry Greenhouse, Senior Vice President & President of Global Supply Chain and Customer Experience, Grainger
On the other side of the Portland metro area, Gresham — where “DC” usually stands for data center rather than distribution center — last summer welcomed a new 500,000-sq.-ft. facility from Grainger for the distribution of more than 135,000 industrial supply items such as hand and power tools, heating, ventilation and air conditioning (HVAC) equipment, fluid power solutions, lighting, power transmission equipment and motors, the company said, noting the initial creation of 80 jobs at the new Northwest Distribution Center could grow to as many as 150. The project complements 10 other Grainger distribution center and branch sites across Oregon, Washington, Idaho and Montana, plus new sites in Pennsylvania, North Carolina and Texas.
The 134-mile shortline Coos Bay Rail Line, owned and operated by the Oregon International Port of Coos Bay, transports approximately $460 million worth of freight in and out of the region every year. Freight rail tonnage demand in Oregon is projected to grow by 83% between 2017 and 2050.
Photo courtesy of Oregon International Port of Coos Bay
“Opening a new, highly automated distribution center ensures we can continue to reach 99% of the U.S. market the next day,” said Barry Greenhouse, Grainger senior vice president and president of global supply chain and customer experience. “The Pacific Northwest is a market we’ve identified as a strategic expansion location to stock many more products than we do today, benefiting more local customers.”
