Analysis
Digi-Key eyeing $300m expansion
7th March 2017
Mick Elliott
Digi-Key Electronics says it is reviewing several potential options for a one million square foot fulfillment, value-added manufacturing and warehouse centre representing an investment of between $200-$300 million. While multiple options are under review, Digi-Key’s long-time base, Thief River Falls would be its preferred location. This would be contingent on both local approvals and legislative changes.
According to Dave Doherty, Digi-Key's President and Chief Operating Officer, "Digi-Key's ongoing growth in both domestic and international sales is driving the need for increased capacity."
Digi-Key's potential expansion would add 1,000+ new jobs over the next ten years to its existing base of 3,200 employees in Minnesota.
"Given our large size, every major expansion becomes more complex and requires that we review a variety of possibilities," Rick Trontvet, Digi-Key's Vice President of Administration and Human Resources said. "This review process involves a lot of fact finding, including due diligence with local and state officials to help us make these decisions." Digi-Key's current operations generate approximately $1.5 billion in economic output and add over $940 million to the state's gross state product. This new expansion would contribute an additional $500 million in state economic output.
