Planned capital investment in distribution centers and warehouse facilities across North America declined in February, suggesting a slowdown in logistics construction activity after several years of rapid expansion tied to ecommerce growth.
Industrial market intelligence firm Industrial SalesLeads Inc. reported that it tracked 173 new distribution and supply chain projects in February 2026, down from 197 projects in January, a 12% month-over-month decline. Activity also fell 15% from February 2025, when the firm identified 232 planned projects, according to the company’s monthly capital spending report.
The report tracks planned industrial projects across North America, including new distribution centers, warehouse construction, facility expansions, and major equipment modernization.
Most of the projects identified in February were warehouse developments rather than large distribution or fulfillment centers.
Industrial SalesLeads reported:
- 156 industrial warehouse projects
- 17 distribution or fulfillment center projects
By project scope, most activity involved upgrades to existing facilities rather than new construction.
- 99 renovation or equipment upgrade projects
- 53 new construction projects
- 29 expansion projects
- 1 facility closure
The mix suggests companies are increasingly prioritizing modernizing and expanding existing logistics facilities instead of building new distribution campuses.
Texas recorded the highest number of planned projects in February with 17, followed by California with 12, Indiana with 11, Virginia with 9, and Florida with 8, according to the report.
These states remain key logistics hubs because of their access to major freight corridors, ports, and large population centers.
Industrial SalesLeads identified five new distribution and supply chain construction projects valued at $100 million or more during the month.
The largest is a planned $206 million investment by Milwaukee Tool to build a 750,000-square-foot manufacturing and warehouse facility in Menomonee Falls, Wisconsin. The project also includes renovation of a 164,000-square-foot research and laboratory facility at the site and is currently seeking approval.
Other large projects tracked in February include:
- A $190 million warehouse development in Pasco, Washington, planned by a real estate developer.
- An $110 million expansion and equipment upgrade project in Temple, Texas, planned by a battery manufacturer.
- A planned 1.2 million-square-foot distribution center in Plant City, Florida, for a home furnishings company
- A $79 million renovation and equipment modernization project in Opelika, Alabama, involving a 700,000-square-foot manufacturing and warehouse facility.
Additional projects include a $50 million distribution center expansion in Fort Wayne, Indiana, a $33 million distribution center expansion in Bear, Delaware, and smaller warehouse construction and upgrade projects in Texas, Tennessee, and Michigan.
The decline in February project activity follows several years of strong investment in distribution and logistics infrastructure as companies expanded warehouse capacity to support ecommerce and improve supply chain resilience.
Industrial SalesLeads, based in Jacksonville, Florida, tracks industrial capital projects including new construction, expansions, relocations, equipment modernization, and plant closures across sectors such as manufacturing, logistics and distribution.
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