KC metro gaining as a major distribution hub

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earthling
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KC metro gaining as a major distribution hub

Post by earthling » Mon Oct 17, 2016 1:02 pm

A bunch of threads out there so consolidating a lot of action this year...

The latest is that Hallmark just completed moving their Connecticut distro center to Independence - 500Ksqft, though only about 150 jobs
http://www.bizjournals.com/kansascity/n ... enter.html

In Oct, CVS opening 850Ksqft distro center near KCI airport, potentially 500+ jobs...
http://www.bizjournals.com/kansascity/n ... ution.html

In March, Amazon announces another distro center in Edgerton, 800Ksqft, over 1000 jobs (existing 300K in Lenaxa)
http://www.kansascity.com/news/business ... 87882.html

In June, Amazon announces a 3rd metro area distro center in KCK, 850Ksqft over 1000 jobs. Potential to grow to 2M sqft...
http://www.kansascity.com/news/business ... 90502.html

Jet.com has a distro center in Gardner and Walmart just bought them. Could mean expansion or closing, no indication yet...
http://www.reuters.com/article/us-walma ... SKCN11P27U
Last edited by earthling on Wed Nov 02, 2016 8:55 am, edited 2 times in total.

earthling
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Re: KC metro gaining as a major distribution hub

Post by earthling » Mon Oct 17, 2016 1:11 pm

As of Q2/2016 KC had 7M sqft of industrial space under construction, 2nd highest in Midwest (Chicago) and 8th highest in US. Probably more soon with new announcements...

http://www.colliers.com/-/media/files/m ... ort_d4.pdf

earthling
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Re: KC metro gaining as a major distribution hub

Post by earthling » Tue Oct 18, 2016 11:52 am

Amazon adding 1200 additional seasonal jobs at Lenexa and Edgerton sites (KCK site not open yet, just recently started construction)...

http://www.bizjournals.com/kansascity/n ... iring.html

It may only pay $10-$12/hour, maybe $14 but the upside is that many jobs may tighten the workforce, upping overall averages for that type of workforce.

earthling
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Re: KC metro gaining as a major distribution hub

Post by earthling » Wed Oct 19, 2016 9:06 am

Amazon might open a 4th distro center, rumored to be looking in Gardner (formerly Kimberly Clark site) potentially for Amazon Fresh delivery in KC area...

Just rumors at this point...
http://www.bizjournals.com/kansascity/n ... enter.html

longviewmo
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Re: KC metro gaining as a major distribution hub

Post by longviewmo » Sun Oct 23, 2016 10:08 pm

If only they had a location in Coffeyville or something.

brewcrew1000
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Re: KC metro gaining as a major distribution hub

Post by brewcrew1000 » Mon Oct 24, 2016 8:07 am

Wonder if KDOT has any plans to extend 35 to 3 lanes all the way to Edgerton. The truck traffic is getting pretty heavy in this stretch now

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Re: KC metro gaining as a major distribution hub

Post by flyingember » Mon Oct 24, 2016 10:10 am

brewcrew1000 wrote:Wonder if KDOT has any plans to extend 35 to 3 lanes all the way to Edgerton. The truck traffic is getting pretty heavy in this stretch now
Plans, probably. money, not really.

earthling
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Re: KC metro gaining as a major distribution hub

Post by earthling » Wed Nov 23, 2016 10:58 am

earthling wrote:Amazon might open a 4th distro center, rumored to be looking in Gardner (formerly Kimberly Clark site) potentially for Amazon Fresh delivery in KC area...

Just rumors at this point...
http://www.bizjournals.com/kansascity/n ... enter.html
New rumor claims the Kimberly Clark site is done deal for the 4th Amazon distro center in KC. But not for Amazon Fresh, it's for Amazon Pantry. Fresh may come later...
http://www.bizjournals.com/kansascity/n ... -city.html

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Re: KC metro gaining as a major distribution hub

Post by bobbyhawks » Wed Nov 23, 2016 12:08 pm

So, is it more likely that the future of product distribution is via autonomous trucking, through a modernized rail system, or through a rail backbone with autonomous spurs at mini distribution centers (obviously cannot predict alternate option of what does not already exist)? With all of this interest in the area comes the lobbying power of these large companies. It will be interesting to track the impact on local transportation infrastructure and technology. Politicians will no doubt do what it takes to keep these folks happy. Automated trucking isn't too far into the future, and rail updates/new tech takes a long long time to plan and implement in the US (and much larger investment), so it is also interesting to see how the rail industry decides to take on a more competitive future or to ignore it in hopes a 59 mph track with crap technology prohibiting traffic increases is sufficient for staying competitive.

earthling
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Re: KC metro gaining as a major distribution hub

Post by earthling » Fri Dec 02, 2016 9:25 am

Biz Journal has a series of pay articles on Amazon and KC's distro industry. This says Amazon has 6 total locations coming to KC area, not 4 . Two existing are the diaper division under Quidsi name. Over 6K total employees in KC expected, possibly the most outside Seattle. Amazon may not be providing mostly high paying jobs (some are) but the major presence boosts KC's freight/logistical industries too.

http://www.bizjournals.com/kansascity/n ... rowth.html
And with Amazon leading the way, that appears to be just the start. Amazon alone soon will occupy more than 4.2 million square feet in the market — if you count the 446,500-square-foot distribution center near Gardner reportedly just leased for the Amazon Prime Pantry nonperishable grocery delivery service and two Lenexa fulfillment centers that even Gutierrez was not aware of.
...
When asked how many people the Quidsi facilities employ, an Amazon spokesman declined to be more specific than “hundreds.” But even not counting those facilities, it’s safe to say the remainder of Amazon’s area facilities will employ more than 6,000 when fully operational.
...
An even larger workforce of as many as 3,500 is expected to be employed at Amazon’s fifth area facility, which will involve fulfillment of orders for small and midsize items. Now under construction near Interstate 70 and the Turner Diagonal in Kansas City, Kan., it will have an 856,000-square-foot footprint, but a mezzanine level will increase its usable space to a whopping 2.3 million square feet.
...
an Jensen, an industrial broker and developer with Kessinger/Hunter & Co. LC, recently reported on Amazon’s sixth metro-area location: the Amazon Prime Pantry operation in the former Kimberly-Clark distribution center at New Century AirCenter near Gardner.
Image

earthling
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Re: KC metro gaining as a major distribution hub

Post by earthling » Fri Dec 02, 2016 1:16 pm

With Amazon looking to partly handle their own freight/logistics long term, KC is likely to become a major part of that given KC already a major freight player. Wouldn't be surprising if Amazon buys Yellow Freight and/or KC Southern eventually for better or worse.

And with Jet.com in KC with Walmart buying them out seeking to compete headon with Amazon online, KC could become a major eCommerce hub, at least on the distro/freight/logistics side of the industry. I suppose KC already is becoming that. Depends on what Walmart decides to do with Jet.com and their KC distro site.

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Re: KC metro gaining as a major distribution hub

Post by aknowledgeableperson » Sat Dec 03, 2016 1:50 am

Amazon's sites all in Kansas.

longviewmo
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Re: KC metro gaining as a major distribution hub

Post by longviewmo » Sat Dec 03, 2016 9:59 am

aknowledgeableperson wrote:Amazon's sites all in Kansas.
Yeah, so Missouri doesn't have to pay sales tax on Amazon orders.

earthling
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Re: KC metro gaining as a major distribution hub

Post by earthling » Sun Dec 04, 2016 4:46 pm

Yeah, I'll take the no sales tax over a MO site.

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Re: KC metro gaining as a major distribution hub

Post by earthling » Thu Dec 29, 2016 9:48 am

Amazon files patent for floating warehouse blimp with drone delivery. "We are Borg, resistance is futile."

https://techcrunch.com/2016/12/28/amazo ... 00591&yptr
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earthling
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Re: KC metro gaining as a major distribution hub

Post by earthling » Fri Jan 13, 2017 8:47 am

Amazon is working on changing their poor worklife image. Offering 30 hour part time jobs with some full time benefits, just a pilot for now. Means overall lower pay so not a good option for most but with thousands of AMZ jobs coming to KC, could be a good fit for many like students or secondary family income - with benefits...

http://www.cheatsheet.com/money-career/ ... nt.html/3/

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Re: KC metro gaining as a major distribution hub

Post by aknowledgeableperson » Fri Jan 13, 2017 9:32 am

earthling wrote:Amazon is working on changing their poor worklife image. Offering 30 hour part time jobs with some full time benefits, just a pilot for now. Means overall lower pay so not a good option for most but with thousands of AMZ jobs coming to KC, could be a good fit for many like students or secondary family income - with benefits...

http://www.cheatsheet.com/money-career/ ... nt.html/3/
Depending on days/shifts this could be a very good option for those couples with children. Have known a few couples where the wife is a nurse. The husband works during the day, M-F, and the wife pulls overnight shifts at a hospital, like F-S-S, and gets home Monday morning before the husband leaves for work.

earthling
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Re: KC metro gaining as a major distribution hub

Post by earthling » Fri Jan 13, 2017 9:48 am

After a closer look, it looks to be mostly for higher level jobs, not warehouse jobs. At least for now, not clear - they are starting with that for the pilot.

joshmv
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Re: KC metro gaining as a major distribution hub

Post by joshmv » Wed Jan 25, 2017 1:11 pm

earthling wrote:Yeah, I'll take the no sales tax over a MO site.
http://www.stltoday.com/business/local/ ... b51a8.html

Look for Amazon to open up shop in MO soon.

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Re: KC metro gaining as a major distribution hub

Post by swid » Wed Jan 25, 2017 1:38 pm

Amazon started collecting sales tax in Nebraska this past month, even though they have not announced any facilities there. On a national level, it's probably an effort to preempt states from forcing them to collect sales tax as much as anything.

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