The FINANCIAL — IKEA on April 6 officially began construction on its future Midwest distribution center in Joliet, Illinois on 72 acres at the Laraway Crossings Business Park, 48 miles southwest of Chicago.
Slated to become operational in Spring 2018, the approximately 1.25-million-square-foot distribution center will serve inventory needs of stores throughout the Midwestern U.S., as well as customer fulfillment. Goods received by the Joliet facility will reflect the nearly 10,000 exclusively designed items currently sold at all IKEA stores worldwide, according to IKEA.
IKEA has chosen Gray Construction to design and build its new IKEA Joliet distribution center. As a nationally ranked engineering, architecture and construction firm with more than 55 years of experience, Gray has designed and built more than 250 distribution facilities across the U.S., including other IKEA distribution centers.“We are pleased that construction has begun in Joliet for our Midwest distribution center, which will support our growing presence in that region of the country,” said Lars Petersson, IKEA U.S. president. “As we become even more accessible nationwide by opening new stores, this distribution center will help meet the home furnishing needs of Midwestern customers. We appreciate the support of Joliet city officials and staff for helping advance this project.”
With nearly, 1,000 suppliers in 50 countries, IKEA globally transports products to its stores through regional distribution centers. This Midwestern facility will complement the current U.S. distribution network comprised of two fulfillment centers on the west coast and three on the east. Its central location will allow goods to be received at coastal ports from both Asia and Europe and then transported inland to the Joliet facility. The facility’s proximity to a nearby railroad intermodal will provide additional long-term transportation options too. Operating this distribution center will eliminate 7,000 tons of CO2 emissions annually, with more reductions expected via future intermodal solutions.In terms of contributing to the local economy, this project will result in construction-related jobs and nearly 100 positions at the distribution center, plus property tax revenue generated for local governments and schools. In addition, IKEA is evaluating potential on-site power generation to complement its current U.S. renewable energy presence at nearly 90% of its U.S. locations.
