UniFirst breaks ground on 109,000 square-foot expansion of Owensboro Distribution and Fulfillment Center

Rhea-AI Summary

UniFirst (NYSE:UNF) has announced a groundbreaking ceremony for a major expansion of its Owensboro, Kentucky Distribution and Fulfillment Center. The $28 million investment will add 109,000 square feet to the facility, bringing its total size to 469,000 square feet.

The facility, which currently employs over 520 local Team Partners, is North America's largest personalization and emblem manufacturing operation, processing over 20 million garments annually. The expansion will feature advanced robotics, smart conveyors, and a new Warehouse Management System.

Construction will begin in March 2025, with partial occupancy expected by October 2025 and full completion by early 2026. The project includes sustainable features such as high-efficiency HVAC systems and LED lighting. The facility holds both ISO 9001 certification and OSHA's VPP Star certification.

Positive

• Major facility expansion increasing operational capacity and efficiency
• $28 million investment demonstrating strong growth commitment
• Implementation of advanced automation and technology systems
• Currently processes 20 million garments annually with potential for growth
• Holds prestigious certifications (ISO 9001 and OSHA VPP Star)

Negative

• Significant capital expenditure impacting short-term cash flow
• Potential operational disruptions during construction phase
• Extended timeline to full completion (early 2026)

Insights

Operations and Supply Chain Expert

UniFirst's $28 million expansion of its Owensboro Distribution Center represents a strategic operational investment that deserves close attention. The 109,000 square-foot addition will increase the facility's footprint to 469,000 square feet, enhancing what's already North America's largest personalization and emblem manufacturing operation processing over 20 million garments annually.

The technological aspects of this expansion are particularly significant. The incorporation of advanced robotics, smart conveyors, and a new Warehouse Management System signals UniFirst's commitment to operational excellence through automation. These investments should drive meaningful improvements in operational efficiency and order accuracy while adding capacity to meet growing customer demand.

From a supply chain perspective, the expansion's timing indicates confidence in sustained demand for UniFirst's services. With construction beginning March 2025 and completion expected by early 2026, the company is positioning itself for long-term growth rather than addressing immediate capacity constraints.

While substantial, this investment represents less than 1% of UniFirst's market capitalization, suggesting it's part of a measured capital allocation strategy rather than a transformative initiative. The expansion's focus on both operational technology and sustainability features (high-efficiency HVAC, LED lighting) demonstrates a balanced approach to facility modernization.

UniFirst Owensboro Groundbreaking Event Details
Date: Thursday, March 27, 2024
Time: 2:30 PM CT
Location: 2801 UniFirst Drive, Owensboro, KY

WILMINGTON, Mass., March 24, 2025 /PRNewswire/ -- UniFirst Corporation (NYSE:UNF), a North American leader in providing customized business uniform programs, facility service products and first aid and safety services, will host a groundbreaking ceremony for the expansion of its Owensboro, Kentucky Distribution and Fulfillment Center on Thursday, March 27, 2025 at 2:30 p.m. Central Time. The event will feature remarks from local dignitaries and elected officials including, Thomas Watson, Owensboro Mayor, Charlie Castlen, Judge/Executive for Daviess County, and other community business leaders, honoring this $28 million investment in the local community.

"The Owensboro expansion reflects our commitment to delivering industry-leading service to our customers while strengthening our relationship with the Owensboro community and the state of Kentucky, which has supported us for 27 successful years," said Steven Sintros, President and CEO, UniFirst.

UniFirst's state-of-the-art Owensboro Distribution and Fulfillment Center currently employs over 520 local Team Partners and is already recognized as the largest personalization and emblem manufacturing operation in North America, processing and shipping more than 20 million garments annually to customers throughout the U.S. and Canada. The 109,000 square-foot expansion will increase the facility's size to 469,000 square feet, enabling greater operational efficiency, enhancing order accuracy, and adding capacity to meet growing customer needs.

The expansion incorporates advanced robotics technology, smart conveyors, and a state-of-the-art shipping sortation system, as well as a new Warehouse Management System designed to streamline operations and scalability. The innovative design and sustainable features include high-efficiency HVAC systems and LED lighting to reduce energy use, along with natural lighting and outdoor spaces to provide an employee-friendly and welcoming work environment.

"This project is an investment in our customers, Team Partners, and the Owensboro community," said David Dersheimer, General Manager, UniFirst. "We are proud to deepen our roots here in Kentucky and are honored to host our local dignitaries who will share in our groundbreaking celebration."

Dersheimer acknowledges the significant support of Andy Beshear, Governor of Kentucky, the Greater Owensboro Chamber of Commerce, the Greater Owensboro Economic Development Corporation (GOEDC), and state and local officials in driving this vital project forward. Gov. Beshear praised the expansion in a recent public statement, highlighting its importance to Kentucky's manufacturing excellence and its positive impact on the local economy. The Owensboro facility has also earned the Governor's Health and Safety Award and is one of only 19 sites in Kentucky to achieve OSHA's VPP Star certification, a designation reflecting the highest safety standards.

Additionally, the facility is ISO 9001 certified, a globally recognized standard for quality management. This certification underscores UniFirst's commitment to customer satisfaction, continuous improvement, and maintaining a robust quality management system.

"This expansion positions UniFirst to better serve our national and local customer base while driving innovation and operational excellence," said Matthew Croatti, Senior Vice President, UniFirst. "We're proud to contribute to the economic vitality of this region while ensuring that our Team Partners have the resources they need to grow with us."

Construction is set to begin in March 2025 with partial occupancy anticipated by October 2025. Full completion of the project is expected by early 2026.

For more information about UniFirst and the Company's uniform rental and facility service solutions, please visit UniFirst.com.

About UniFirst
Headquartered in Wilmington, Mass., UniFirst Corporation (NYSE: UNF) is a North American leader in the supply and servicing of uniform and workwear programs, facility service products, as well as first aid and safety supplies and services. Together with its subsidiaries, the company also manages specialized garment programs for the cleanroom and nuclear industries. In addition to partnering with leading brands, UniFirst manufactures its own branded workwear, protective clothing, and floorcare products at its three company-owned ISO-9001 certified manufacturing facilities. With more than 270 service locations, over 300,000 customer locations, and 16,000-plus employee Team Partners, the Company outfits more than 2 million workers every day. For additional information, contact UniFirst at 888.296.2740 or visit UniFirst.com. Follow UniFirst on Social Media: LinkedIn, Facebook, X, YouTube, Instagram.

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SOURCE UNIFIRST CORPORATION

FAQ

How much is UniFirst (UNF) investing in the Owensboro facility expansion?

UniFirst is investing $28 million in the Owensboro Distribution and Fulfillment Center expansion project.

When will UniFirst's Owensboro facility expansion be completed?

The expansion project will begin in March 2025, with partial occupancy by October 2025 and full completion expected by early 2026.

How many square feet will be added to UniFirst's Owensboro facility?

The expansion will add 109,000 square feet, increasing the facility's total size to 469,000 square feet.

How many garments does UniFirst's Owensboro facility process annually?

The facility processes and ships more than 20 million garments annually to customers throughout the U.S. and Canada.

What new technologies will be implemented in UniFirst's Owensboro expansion?

The expansion will incorporate advanced robotics technology, smart conveyors, a state-of-the-art shipping sortation system, and a new Warehouse Management System.