BBJ: Lowe’s confirms massive new bulk distribution facility in Bessemer

New jobs coming to Bessemer

BESSEMER, Ala. (WBRC) - The following information is from the Birmingham Business Journal:

Lowe’s announced a massive facility going up in Bessemer is part of its expanding distribution network.

Steve Salazar, Manager of Corporate Communications at Lowe’s (NYSE: LOW), confirmed the announcement to the Birmingham Business Journal in an email.

As BBJ previously reported, Chicago-based developer Clayco acquired about 96 acres next to Carvana on Morgan Road to build a 1.2-million-square-foot facility for Lowe’s.

“This facility will serve as a bulk distribution center that will provide daily shipments of appliances and other bulky items such as riding mowers, grills and patio furniture to Lowe’s cross-dock facilities for last-mile delivery to customers,” Salazar said. “The Bessemer distribution center also will replenish inventory at more than 112 stores, serving locations in Alabama, Arkansas, Louisiana, Mississippi, Georgia, Florida and Tennessee.”

It will be another addition to the Mooresville, North Carolina-based company’s expanding network of bulk distribution centers and cross-dock facilities that it is building in an effort to coordinate deliveries and boost efficiency at regional distribution centers and stores.

The company has not disclosed how many jobs will be created at the facility or the cost of the project.

A third party will run the Bessemer facility with shipments from the center expected to begin by fall of next year.

“The 1.2 million square-foot facility will enable Lowe’s to provide faster and more predictable deliveries to customers in Alabama and surrounding states as we continue to grow our distribution network,” Salazar said.

The Bessemer facility and others like it will enable the company to broaden the range of products that it’s able to offer for next-day delivery.

It’s part of a $1.7 billion investment Lowe’s is making in its supply chain through 2023 that will create nearly 5,000 jobs in this initial expansion.

“We are excited to join the Bessemer community,” Salazar said.

Lowe’s is not alone. The move is part of a major push by inventory-related companies to expand their supply chains in response to the rise in e-commerce and the demands placed on the market by the novel coronavirus pandemic. And as BBJ reported in a recent Cover Story, it’s a trend that industrial real estate experts say bodes well for metro Birmingham.

Bessemer Mayor Kenneth E. Gulley issued the following state following the announcement:

"We are extremely excited that Lowe’s Companies, Inc. has decided to increase its footprint in the Southeastern United States by locating here in Bessemer. This is the latest in our efforts to position Bessemer as an economic powerhouse for manufacturing and industrial development in this county, state and region.

I want to extend a special thanks to the Bessemer City Council, the Birmingham Business Alliance, U.S. Steel, Jefferson County, the State of Alabama and all of our partners who played a part in making this project a reality.

I particularly want to thank the Lowe’s Companies, Inc. for recognizing the value of investing in Bessemer. This new development – a $1.2 million-square-foot, $40 million facility – will greatly enhance the city of Bessemer and create 150 to 200 well-paying positions.

My objective remains the same as Mayor: my desire is to create a working climate in the city of Bessemer where everyone who wants a job can find meaningful employment and provide for themselves and their families.

It is my pleasure to welcome Lowe’s to the city of Bessemer and we look forward to working with Lowe’s for many years in the future."

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