![]() “It is pretty phenomenal to have a company like ours and Arctic Cat right here,” Rick Trontvet, DigiKey’s vice president of administration, told me during an interview in his office. “Their decision says a lot about their commitment to our community.”ĭigiKey is located in an industrial park on the southwestern edge of town, right next to another iconic northern Minnesota company: the snowmobile and all-terrain vehicle maker Arctic Cat. ![]() “Their decision to grow their business here is really remarkable when you look at the size of the community and the population,” said Michelle Landsverk, a consultant recently hired to work for Advance Thief River, a local economic development group. (The company, which has a smaller distribution center in Fargo and call centers in several countries, employs about 4,000 people in all). The shell of the new warehouse is largely completed and the company hired 330 more workers last year, bringing its workforce at its Thief River Falls campus to about 3,500. ![]() Moreover, the company also got some help from local government in the form of tax increment financing, a break on building permits and funds for new infrastructure.ĭigiKey argued that the expansion would generate millions of dollars in tax revenue for the state in the long run, and on a recent trip to Thief River Falls, I heard few complaints about the public help. DigiKey received $44 million in state tax breaks for its distribution center – a mammoth building that covers as much ground as the old Metrodome in Minneapolis and will have 2.2 million square feet of usable space. The decision heartened the town of 8,600, whose identity has become increasingly tied to the fortunes of DigiKey.Įxecutives won’t reveal where else they looked, or say too much about why they chose to expand at home, but financial incentives certainly tell part of the story. Ultimately, DigiKey decided to build its new distribution center right at home in Pennington County, in far northwestern Minnesota, where the company got its start in 1972 – decades before it became the mega-business that generated $3.1 billion in revenue last year. That wasn’t surprising, considering the Thief River Falls electronic parts distributor expected that it would need to hire another 1,000 workers but was, at the same time, located in one of the more lightly populated regions of Minnesota – one with a tight labor market to boot. For us, it’s deeper roots in Thief River Falls and a commitment to continue investing in this community and the state of Minnesota.A few years ago, when executives at DigiKey Electronics began to plan an expansion project, they looked at several possible locations in the Midwest. As exciting as this expansion is for us, our hope is that our customers truly don’t notice a difference – the transition for them should be seamless, and if anything, result in an even better customer service experience than they are already accustomed to. ![]() “Our new product distribution center expansion will help us continue to deliver excellence to our customers for many years to come. “This is a significant milestone for all Digi-Key employees and our community,” said Dave Doherty, president of Digi-Key. Officials say the new facility allows Digi-Key to pick, pack and ship nearly three times the previous daily average of 27,000 packages to customers in more than 180 countries around the world.ĭigi-Key celebrated with an official cutting of tape from a Digi-Reel and ceremonial first package handoffs to each of the company’s four carrier partners: DHL, FedEx, UPS and USPS. (Valley News Live) - A Thief River Falls, Minnesota company is celebrating the expansion of its Product Distribution Center, which makes it one of the 10 largest warehouses in North America.ĭigi-Key Electronics expanded the company’s headquarters by 2.2 million square feet for a combined total of more than 3 million square feet. ![]()
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