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Home » Distribution Industry News » Wholesale Distributors Accelerate U.S. Expansion with New Distribution Centers in 2025

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  • Published on: October 7, 2025

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Distribution Industry News

Wholesale Distributors Accelerate U.S. Expansion with New Distribution Centers in 2025

Wholesale distributors across the United States are expanding their logistics networks in 2025, opening, or announcing at least seven major distribution centers as they push to automate operations, shorten delivery times, and strengthen regional coverage. The expansion spans food, healthcare, industrial, and building materials sectors and marks a broader shift toward technology-driven fulfillment and supply chain resilience.

In the grocery sector, United Natural Foods Inc. opened a 1 million-square-foot distribution center in Sarasota, Florida, in September 2025. It is the company’s first facility equipped with KNAPP’s “Pick-it-Easy” robotics system, which automates case picking to improve labor efficiency and order accuracy. The Sarasota site expands UNFI’s reach across the Southeast and helps relieve pressure on older facilities as e-commerce and retail demand rise.

KeHE Distributors, another major food wholesaler, cut the ribbon on a 530,000-square-foot distribution center in Elkton, Florida, in July 2025. The project replaces aging capacity in Georgia and gives KeHE a stronger foothold in the fast-growing Sun Belt. Company leaders said the site enhances network flexibility and enables faster response to weather disruptions and seasonal demand surges.

In the healthcare sector, Cardinal Health’s At-Home Solutions division opened a 340,000-square-foot facility in Fort Worth, Texas, in September 2025 to meet growing demand for home medical supplies. The company also confirmed plans for a second facility in Sacramento, California, expected to open within the next fiscal year. Separately, Cardinal Health is building a large, automated pharmaceutical distribution center in Indianapolis, Indiana, scheduled for completion in 2027. The site will manage specialty and temperature-controlled drugs that require advanced serialization to meet new federal security standards.

Construction and industrial suppliers are also adding capacity to meet customer expectations for faster delivery. In September, White Cap opened a 332,000-square-foot enterprise distribution center in Perris, California, consolidating multiple branch inventories into a single, automated hub to improve same-day and next-day fulfillment across the western United States.

Cameron Ashley Building Products opened a new distribution center in Fort Myers, Florida, early in 2025 to strengthen its network in Southwest Florida. The company said the site supports faster replenishment for branches and job sites while improving delivery reliability.

Fastenal launched a technology-driven facility in Magna, Utah, during the first quarter of 2025, expanding next-day service coverage across the Mountain West. The site integrates digital inventory control and real-time fulfillment systems. Würth Industry North America also committed to a new regional hub in Columbus, Ohio, repurposing a former MSC Industrial Supply warehouse to support its growth and add regional jobs.

Automotive and parts distributors are joining the trend. In February 2025, Stellantis announced a new Mopar parts distribution center in Forsyth, Georgia, to speed deliveries to dealerships across the Southeast and reduce logistics costs.

Smaller players are expanding as well. Farmmi USA Inc., a food and agricultural distributor, signed a lease for a 183,000-square-foot warehouse in Robbinsville, New Jersey, to increase logistics capacity and better serve U.S. customers. Border States, a top electrical and industrial distributor, broke ground in mid-2025 on its first dedicated regional distribution center, which is expected to open in 2026. The company said the facility will bring new automation and scale to its network.

Industry analysts say the expansion wave reflects an industry-wide push toward automation, proximity, and resilience. Distributors are investing in robotics, advanced warehouse management systems, and temperature-controlled environments to improve speed, precision, and adaptability.

So far in 2025, at least seven major distribution centers have opened nationwide — led by UNFI in Sarasota, KeHE in Elkton, Cardinal Health in Fort Worth, White Cap in Perris, Cameron Ashley in Fort Myers, Fastenal in Magna, and Stellantis in Forsyth — with several more under construction or planned. The projects range from 183,000 to more than 1 million square feet, signaling a surge of investment reshaping wholesale logistics this year.

Beyond adding space, these new facilities reflect a fundamental transformation in distribution. As automation becomes standard and regional hubs multiply, the industry is shifting toward a faster, more data-driven model — positioning 2025 as a turning point in the modernization of the U.S. wholesale supply chain.

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