Consumer Electronics

Digi-Key plans opening of new Minnesota distribution center

05 August 2022
Source: McShane Construction

Digi-Key Electronics will unveil the company's product distribution center expansion to industry media on August 17 in Thief River Falls, Minnesota. Company officials will speak about the center and offer tours to invitees.

The expansion is a $400 million investment in the company's distribution capabilities, which needs to meet the skyrocketing demand of the electronics components market. The building now offers 2.2 million ft2 of warehousing and logistics space. When the project was announced in 2017, the center was just 800,000 ft2. Construction was completed by McShane Construction of Illinois.

[Visit Digi-Key's supplier profile on GlobalSpec.]

The company has also eased into a new distribution system at the center, due to the immense size of the facility.

“We have a tremendous amount that we ship, some 27,000 to 30,000 packages a day,” Shane Zutz, Digi-Key's vice president of human resources, recently told the Grand Forks Herald.

“If we put all our stuff in a system and it doesn't work, that's a tremendous risk to our business and customers that depend on us. We’re just going to be very, very careful about (how we do this).”

Not only will the state government see an additional $164 million in tax revenue per year, the local communities will benefit from hundreds of jobs created.

Digi-Key expects the facility to by fully operational this August. Stay tuned to Electronics360 for additional coverage of this boon to the electronics supply chain.

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