Davidson Logistics plans to open $40M expansion in early 2024
Davidson Logistics is expanding with a new 500,000-square-foot warehouse set to open in early 2024. The Bridgeton-based company provides logistics services for The Boeing Co. and several other clients.
Bridgeton, New Jersey-based company providing logistics services to The Boeing Co.
Don Davidson Jr. is the founder and CEO of Davidson Logistics. He estimated that the expansion project would cost $40 million. The new warehouse has been planned for more than a year and is expected to hire 100-150 new workers in addition to the 300 employees at Davidson’s adjacent, nearly 1,000,000-square-foot facility at 13930 Missouri Bottom Road.
Davidson Logistics manages the supply chain for Boeing's F/A-18 Super Hornet, and F-15 Eagle. Boeing has contracted the company for over 25 years.
We unpack the parts. We load them onto conveyances to bring them to Building 101, where Boeing makes the planes.
Boeing referred to Davidson Logistics, as a key partner' for its success.
'Davidson Logistics oversees warehousing, transporting Boeing parts to and from the St. Louis production lines. Boeing and the manufacturing industry in the region will benefit from Davidson Logistics' new facilities.
Boeing announced its plans in February to stop production of the F/A-18 Super Hornet aircraft in 2025 after the U.S. Navy has completed all final orders. Davidson stated that his company hoped to compensate Boeing for this loss by handling the logistics of its St. Charles facility, which manufactures Harpoon missiles and bombs known as Joint Direct Attack Munition.
Davidson Logistics is also a contractor for GKN Aerospace. Last year, GKN announced that it would shut down its Hazelwood facility by the end this year. GKN's spokesperson stated that there was no update on Tuesday regarding the closure of the plant. Reckitt Benckiser consumer goods, General Electric, and General Motors are also clients. Davidson Logistics is under contract with GM to store vehicles from its Wentzville factory in a quarry owned by it in Troy, Missouri until the semiconductor chips and other components can be installed.
A building located at 1 Corporate Woods Drive across the Missouri 370 Bridge from Davidson Logistics has also been of interest to potential buyers. Davidson Surface/Air bought the 315, 000-square-foot facility, which was the former headquarters of KV Pharmaceuticals, in 2014 for $9.5 Million.
Davidson stated that his company is interested in selling the building it used to store parts of aircraft through a 1031 swap. The 1031 exchange is named after a section in the Internal Revenue Code that allows property owners of businesses to defer capital gain taxes if they reinvest the proceeds from a sale into a similar property – which would be the Davidson Logistics warehouse currently under construction.
Davidson Logistics said it spent around $2 million renovating the former KV Building to convert areas which had been used as clean rooms into manufacturing or warehousing.
Davidson Logistics, the parent company for 12 companies, has an annual revenue of around $200 million. The company has offices in South Africa as well as Denmark, Japan, and Germany.