Bugle Staff
Furnishings retailer IKEA last week began construction of a future Midwest distribution center in Joliet.
The approximately 1.25 million-square-foot distribution center is being built on a 72-acre site at the Laraway Crossings Business Park. When it becomes operational in spring 2018, the company said it will fulfill inventory needs of IKEA stores throughout the Midwest.
“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. “We appreciate the support of Joliet city officials and staff for helping advance this project.”
The company said the project will create construction-related jobs and almost 100 positions at the distribution center, as well as generate property tax revenue for local governments and school districts.
“We welcome IKEA to Joliet and thank them for recognizing the value that our marketplace affords,” Joliet Mayor Bob O’Dekirk said in a city news release. “The skilled construction jobs and permanent IKEA positions will be a great employment opportunity for those here in Joliet.”
Gray Construction was selected to design and build the Joliet distribution center. The nationally ranked engineering, architecture and construction firm has designed and constructed more than 250 distribution facilities across the country, including other IKEA distribution centers.
“This project is the first big announcement for what is shaping up to be another great construction year in Joliet,” O’Dekirk added.
With nearly 1,000 suppliers in 50 countries, IKEA globally transports products to its stores through regional distribution centers. This Joliet facility will complement the current U.S. distribution network comprised of two fulfillment centers on the west coast and three on the east. The central location of the Midwest distribution center allows goods to be received at coastal ports from both Europe and Asia and, before they are transported to the Joliet facility.
Additionally, IKEA said the center’s close proximity of the CenterPoint Intermodal Center will also offer additional long-term transportation options.
Operating this distribution center will eliminate 7,000 tons of CO2 emissions annually, with more reductions expected via future intermodal solutions.
In addition, IKEA is evaluating potential on-site power generation to complement its current U.S. renewable energy presence at nearly 90 percent of its U.S. locations.
This project represents the fourth significant investment by IKEA in the state of Illinois. In addition to the future Joliet distribution center, IKEA has two Chicago-area stores in Bolingbrook and Schaumburg.
There are currently more than 380 IKEA stores in 48 countries, including 41 in the U.S., where there also are 5 operating distribution centers. Goods received by the Joliet facility will reflect the nearly 10,000 exclusively designed items currently sold at all IKEA stores worldwide.