After a two-year delay, developers of an Amazon warehouse recently broke ground on a new 3.4-million-square-foot facility in Cottage Grove, Wisconsin.
In 2022, developer Trammell Crow submitted plans to build a distribution facility with office space on a 145-acre parcel immediately north of Interstate 94 in Cottage Grove. Amazon officials estimate the project will create between 1,000 and 1,500 jobs locally.
The $245 million project was one of many Amazon projects delayed in 2022.
Amazon cancelled many development projects after business slowed following the COVID-19 pandemic, but not the Cottage Grove project. The construction timeline has the project scheduled for completion in 2027.
Warehousing and logistics trends
The decision to move forward with the distribution center is in line with warehousing and logistics trends. Industry experts estimate that between 2022 and 2050, nearly every state will increase freight shipped by truck. This will increase the need for warehousing space and mean changes in warehouse operations.
Industry experts expect an increase in warehouse automation and robotics, data-driven decision making, more access for smaller businesses, the growth of micro fulfilment centers and the adoption of smart warehousing.
Should these predictions be true, we will continue to see an increase in warehouse development, warehouse absorption, and increased demand for power to accommodate the change in warehouse operations and the use of electric vehicles for delivery and long-haul trucking.