Fastenal plans to break ground March 24 on a new regional distribution and logistics center in Carrollton, Georgia, expanding capacity in the Southeast as it continues shifting more inventory into centralized, automated facilities.
The site, expected to open in spring 2027, will replace Fastenal’s existing 252,000-square-foot Atlanta-area distribution center. The Carrollton property has capacity to expand the building to as much as 900,000 square feet, the company said.
The project aligns with a broader change in Fastenal’s inventory and fulfillment strategy. At the end of 2025, approximately 46% of the company’s total inventory was held at distribution centers and manufacturing locations, according to its annual report. The company said it increased inventory levels at those facilities during the year, improving product availability, profitability, and operating efficiency.
Fastenal operates 15 regional distribution centers in North America. This includes 12 facilities in the U.S, two in Canada and one in Mexico, as well as two facilities in Asia and two in Europe, for a total of about 5.3 million square feet of distribution capacity.
The network is designed to support frequent replenishment of local branches and customer sites. Deliveries typically occur two to five times per week using Fastenal’s trucking fleet, supplemented by overnight service through surface carriers. About 79% of North American selling locations receive service four to five times per week, the company said.
Within that system, distribution centers in Indiana and Kansas serve as “master” hubs, while facilities in California and North Carolina function as “secondary” hubs, supporting regional demand and providing broader product assortment to other locations.
Automation is a key component of the network. Fastenal said 12 of its North American distribution centers are equipped with automated storage and retrieval systems, which manage approximately 96% of picking activity. The company expects to continue investing in automation, expanding existing facilities and adding new capacity as its network grows.
The new Carrollton facility will incorporate updated warehouse software and material-handling systems aimed at increasing storage capacity and accelerating order fulfillment. It will support the company’s goal of positioning more inventory closer to demand, enabling faster service across the Southeast.
Fastenal also uses Local Inventory Fulfillment Terminals, or LIFTs, within its distribution centers to support its fastener management inventory business. These terminals centralize the stocking and packaging of inventory used in customer vending and bin systems, reducing duplication at the branch level and shifting fulfillment tasks away from sales personnel.
The company primarily uses a “drop-and-deliver” model, in which LIFTs prepare inventory and ship it to local branches for final delivery and replenishment. In some cases, LIFT personnel handle delivery directly. About 11% of fastener management inventory sales were supported through LIFTs in 2025, a share the company said could increase to about 40% over time.
The Carrollton facility will serve branch locations and customer sites throughout the Southeastern United States. Fastenal’s current regional operation, established in 1993 and now employing about 300 people, is expected to grow over the next five years as the new facility comes online.
The company said the Carrollton location was selected in part for its proximity to technical schools and universities, which are expected to support hiring and workforce development.
The expansion reflects a broader shift across industrial distribution toward larger, more automated regional hubs, as companies rebalance inventory away from branch locations and invest in centralized fulfillment and transportation networks to improve service levels and manage costs.
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