This article has been revised to reflect the following correction: A misspelling was corrected.
At Foundation Park in northern Sioux Falls, crews are busy preparing land for Amazon’s two million square foot distribution center. But just across the street is another booming warehouse business.
“We deal in truckloads mainly, pallet size loads,” Nordica Warehouses President Dan Afdahl said.
Nordica Warehouses store products for different companies, many in manufacturing.
“We store corrugated boxes for John Morrell,” Afdahl said. “It all turns in less than a month, probably closer to 20 days, so it goes out of here pretty fast.”
They manage hundreds of shipments arriving and going out every day from all over the world.
“We have customers in Germany, Japan, Italy, Austria, the Netherlands,” Afdahl said.
Nordica Warehouses has one million square feet of warehouse space; just one client fills one entire 100,000 square foot warehouse. It’s why Nordica warehouses continue to look to add more space.
“This campus here is full so we went out to Foundation Park and bought some land,” Afdahl said.
Nordica Warehouses was the second company to build out at Foundation Park.
“We built a 200,000 square foot building and before it was even done, we knew it wasn’t going to be big enough so we added another 100,000 square feet,” Afdahl said.
They just moved into their new 300,000 square feet of warehouse space in Foundation Park last year.
“It pretty much filled up immediately,” Afdahl said.
Now Nordica Warehouses is working to build even more space.
“We immediately bought some more land out there right across the parking lot and started construction on another 200,000 square foot building that we plan on moving into right after Christmas,” Afdahl said.
Afdahl says this big boom in third-party logistics is a good indicator of what’s going on in the area economy.
“I can tell you that the economy is very good in Sioux Falls, even with this dip with the covid situation,” Afdahl said.
Afdahl says the challenge with all of the recent growth is finding enough employees, a labor situation he thinks could get even more competitive once Nordica Warehouses’ neighbor Amazon opens its distribution center.