UniFirst expands Owensboro Distribution and Fulfillment Center with innovations to elevate customer service and operational excellence

Rhea-AI Summary

UniFirst (UNF) has announced a $28-million expansion of its Owensboro, Kentucky Distribution and Fulfillment Center. The project includes a 110,000-square-foot addition to the existing 360,000-square-foot facility, implementing advanced robotics technology and a streamlined ordering system.

The facility, which opened in 1998, currently ships over 20 million garments annually and serves businesses across various industries. The expansion aims to optimize operations, enhance order accuracy, and deliver more customized solutions for UniFirst's customer base, which includes over two million workers daily at 300,000+ customer locations through more than 270 service facilities across North America.

Positive

• $28 million strategic investment in facility expansion
• 110,000-square-foot addition to existing 360,000-square-foot facility
• Implementation of advanced robotics technology for operational efficiency
• Current capacity of 20 million garments shipped annually

Negative

• None.

Insights

Operations and Supply Chain Analyst

The $28 million investment in UniFirst's Owensboro facility marks a strategic operational transformation that warrants investor attention for several compelling reasons. The expansion combines a 30% increase in physical footprint with advanced robotics implementation, positioning UniFirst to capture operational efficiencies in the competitive uniform services market.

The modernization effort is particularly well-timed, addressing three critical market dynamics: 1) Rising labor costs driving automation adoption, 2) Increasing demand for customization and faster fulfillment and 3) Growing emphasis on order accuracy in B2B services. The robotics integration should significantly reduce operating costs while improving order accuracy, potentially leading to higher margins and customer satisfaction.

Most notably, this investment demonstrates strong cash flow deployment for long-term competitive advantages. With 20 million garments processed annually, even modest efficiency improvements could yield substantial returns. The expansion's scale suggests UniFirst is positioning for significant market share growth, particularly in high-value sectors like healthcare and manufacturing.

The strategic value extends beyond mere capacity expansion - the enhanced customization capabilities and streamlined ordering systems address evolving customer demands for personalization and efficiency. This technological leap could create meaningful differentiation in an industry where service quality and turnaround time are key competitive factors.

WILMINGTON, Mass., Jan. 30, 2025 /PRNewswire/ -- UniFirst Corporation ( :UNF), a North American leader in providing customized business uniform programs, facility service products and first aid and safety services, has announced a $28-million expansion of its Owensboro, Kentucky Distribution and Fulfillment Center. The project includes a 110,000-square-foot addition to the 360,000-square-foot facility, advanced robotics technology, and a streamlined ordering system designed to support growth and boost operational capacity.

"Our investment in our Owensboro facility is a strategic step forward in delivering the best service in the industry," said Steven Sintros, UniFirst President and CEO. "With state-of the art robotics and overall system upgrades, we're taking innovation and operational excellence to the next level. This expansion is all about serving our customers better than ever while strengthening our deep connection with the Owensboro community. It's a clear reflection of our dedication to progress and our relentless focus on our customers."

The Owensboro Distribution and Fulfillment Center inventories, customizes, and distributes work apparel and personal safety items to companies across North America. Since its opening in 1998, the facility has grown significantly, now shipping over 20 million garments annually. These upgrades will help optimize operations, enhance order accuracy, and deliver more customized solutions for UniFirst's diverse customer base. This modernization highlights the company's dedication to leading the industry as the premier service provider.

David Dersheimer, general manager of Owensboro added, "The new technology and increased capacity will allow us to operate more efficiently and meet customer needs with unmatched precision. This project positions us for continued growth well into the future."

Since its founding in 1936, UniFirst has served businesses across a range of industries, including automotive, manufacturing, transportation & warehousing, energy & utilities, healthcare, food service, contracting & trades, retail, and more. Today, the company serves over two million workers daily at 300,000+ customer locations through a network of more than 270 service facilities across North America.

For more information about UniFirst Corporation and its services, 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 its Owensboro facility expansion?

UniFirst is investing $28 million in the expansion of its Owensboro, Kentucky Distribution and Fulfillment Center.

What is the size of UniFirst's (UNF) Owensboro facility expansion?

The expansion adds 110,000 square feet to the existing 360,000-square-foot facility, bringing the total size to 470,000 square feet.

How many garments does UniFirst's (UNF) Owensboro facility ship annually?

The Owensboro Distribution and Fulfillment Center ships over 20 million garments annually.

What technological improvements are included in UniFirst's (UNF) Owensboro expansion?

The expansion includes advanced robotics technology and a streamlined ordering system to enhance operational capacity and order accuracy.

When did UniFirst (UNF) open its Owensboro Distribution Center?

The Owensboro Distribution and Fulfillment Center opened in 1998.