In the final phase of a realignment of its distribution facilities, Ingram Book Group has announced plans to open a new $25-million distribution center in Chambersburg, Pa. At 665,000 square feet, the new facility will be the largest in Ingram's distribution network and will serve not only as a book distribution facility, but will also handle magazine distribution and house Ingram's national returns center.
The opening of the Chambersburg site will result in the phasing out of Ingram's two other East Coast distribution centers, in East Windsor, Conn., and Petersburg, Va. Rumors had been circulating since BookExpo America that Ingram was preparing to close the Petersburg facility. The Chambersburg site is expected to open in early 2002, and the two smaller operations are anticipated to close within the next year. The changes are part of Ingram's strategy to operate fewer but larger distribution centers, a move that will reduce overhead costs.
Earlier this year, Ingram announced that it was closing its Denver and Chino, Calif., distribution centers. The closing of the four centers, combined with the opening of the Chambersburg facility, will leave Ingram with four distribution locations, down from a one-time high of eight. "This is the end of a long and arduous exercise," Jim Chandler, chief commercial officer of the Ingram Book Group told PW. He called Chambersburg "the optimum place" for an East Coast distribution center, noting that it is close to publishers as well as printers. In addition, Ingram will still be able to provide next-day service to the major markets in the east, Chandler said.
Chandler hopes to be able to consolidate the operations of the East Windsor and Petersburg centers with as little disruption as possible and with a minimal increase in returns. There are currently 372 employees at the two existing centers, and some are expected to relocate to Chambersburg, where the workforce will total 600. Ingram's returns center in Chambersburg, which will be moved into the new building, already employs 109 people. To help attract Ingram to Chambersburg, the state provided a $4.7-million financial package, as well as a number of incentives, including job-creation tax credits, a job-training grant and an infrastructure development grant.
Michael Lovett, Ingram Book Group president and CEO, called the Chambersburg project "the largest single investment we've ever made," adding that the company "is making substantial reinvestments in the book industry because we are confident in its future."
