Why This Matters to Distributors: Van Meter’s investment reflects accelerating pressure on distributors to modernize fulfillment operations with robotics, warehouse consolidation and automation technology as labor costs rise and customers demand faster, more reliable delivery.
Employee-owned electrical and automation distributor Van Meter is expanding and automating its regional distribution center in Cottage Grove, Minnesota, as distributors continue increasing investments in warehouse technology and fulfillment infrastructure.
The company said it is adding 124,000 square feet to its existing Cottage Grove operation, expanding the facility to 315,000 square feet. The project also includes deployment of warehouse automation technology from Hai Robotics as part of a multiyear investment designed to increase fulfillment capacity and operational efficiency.
Van Meter currently operates two facilities in Cottage Grove and said the expansion will allow the company to consolidate inventory management, order fulfillment, and wire-and-cable processing operations into a single site.
Construction and automation implementation are expected to continue through 2027, with the full operational transition scheduled for 2028.
“This expansion is about building capacity with purpose,” Nate Jensema, chief operating officer at Van Meter, said in a statement issued by the company. “By combining additional space with intelligent automation, we’re creating a more efficient, scalable operation that supports our customers today while preparing us for what’s next.”
Van Meter said the Cottage Grove facility currently employs about 205 workers and serves customers throughout the Upper Midwest.
The distributor said the project is intended to improve long-term operating efficiency, strengthen service reliability and maintain uninterrupted customer service during construction.
The expansion comes as distributors across industrial, electrical and MRO markets accelerate investments in robotics, automated storage systems, and warehouse modernization to improve labor productivity and increase fulfillment speed.
Hai Robotics develops automated case-handling robotic systems used in warehouses and distribution centers. The technology is designed to increase storage density and improve picking efficiency without requiring complete facility reconstruction.
“This project represents a significant milestone for Van Meter and our confidence in the future,” Lura McBride, president and CEO of Van Meter, said in the company statement. “As an employee-owned company, we think in generations, not quarters.”
Ryan Companies will serve as general contractor for the project.
Van Meter distributes electrical, automation, datacom, lighting, power transmission, solar and industrial products across Iowa, Kansas, Minnesota, Nebraska, and Wisconsin. The company said the Cottage Grove project is part of its broader growth strategy through 2030.
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