FedEx Expansion Could Bring More Jobs to South Bend


FedEx has announced an expansion of its facilities in South Bend, which could mean more jobs for the area.

The national shipping company is building a new 200,000 square feet building on Dylan Drive on the northwest side of South Bend. The building will serve as a new distribution center.

“The site was chosen because of its ease of access to major highways, proximity to customers’ distribution centers and a strong local community workforce for recruiting employees,” says company spokesman David Westrick.

The company is moving from its existing facility near the South Bend International Airport. FedEx says that current employees will move to the new location with a possibility that the company “will add to the overall area workforce as necessary to support increased demand for service.”

The project is expected to cost between $15 and $25 million and should be complete in May 2016.

FedEx has undergone a $1.2 billion expansion in recent years. The company opened 11 new hubs and expanded or relocated more than 500 local facilities since 2005. It says that these improvements have accelerated delivery speeds by a day or more in two-thirds of the United States.

Shipping remains a lucrative business as online retailers continue to increase their sales year-over-year, supplanting traditional brick-and-mortar locations. The company’s stock is up 27 percent over the previous 12 months.

FedEx posted revenues of $45.7 billion in 2014, up from $44.3 billion in 2013. Company profits were up 34 percent over the same period of time.

The expansion could not come at a better time for the city. The USPS distribution center in South Bend is in the process of closing down as operations are shifted to Fort Wayne as part of a cost-cutting plan.

Image Credit: Dan McKay, flickr

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