Medline’s West Jefferson, Ohio, distribution center. (Image courtesy of Medline)
Medline Industries announced this week that it has completed a three-year, $1.5 billion capital spending campaign.
The Northfield, Ill.-based company, which is reportedly up for sale, said it invested the money in new distribution centers, manufacturing capabilities and IT upgrades to improve customers’ e-commerce experience. All told, the initiative added approximately 8,500 new jobs, eight new distribution centers, nearly 150 manufacturing expansion projects and a new global digital customer ordering platform.
“Our ability to be flexible for healthcare providers has been a direct result of our ongoing planning for the future. We know we can make healthcare run better by answering and anticipating the needs of customers,” said Charlie Mills, CEO of family-owned Medline, in a news release. “Our investment initiative lets us plan for the future so we can care for providers and our communities for many years to come.”
Over the next four years, the company plans to add more than 10 million square feet in warehouse space. It also plans to complete construction on seven U.S. distribution centers, designed to meet LEED standards, in:
- Grayslake, Ill.
- Hammond, La.
- Mebane, N.C.
- Montgomery, N.Y.
- Richmond Hill, Ga.
- Southaven, Miss.
- St. Peters, Mo.
Medline also expanded its private shipping fleet to 1,200 trucks, which it said led to better use of buildings, faster shipping, improved delivery accuracy, and the development of proprietary technology solutions and improved cybersecurity.
“With these investments, we can deliver products to 98% of U.S. customers within two to four hours,” said Bill Abington, EVP global operations.
In manufacturing, the company plans to add a second face mask production line this year to its Lithia Springs, Ga., plant, which began producing masks in November 2020. Medline said it expects to eventually produce more than 36 million face masks per month.
The company also invested more than $1.6 million to install solar panels on the rooftop of its 680,000 ft² headquarters and plans to add solar panels to facilities in Montgomery, N.Y. and Uxbridge, Mass. by mid-2022.
During the remainder of 2021, Medline said it plans to invest an additional $500 million, including continued work on nine new distribution center projects, supply-and-demand planning technology and additional manufacturing expansions and upgrades.
