Frayser optimistic as Nike unwraps $276M expansion
The fruits of Nike’s $276 million investment in a downtrodden Memphis neighborhood were on display Friday at the grand opening of the company’s 2.8-million-square-foot North American Logistics Campus in Frayser.
Nike executives and local and state politicians gathered to unveil what representatives say is now the largest distribution center of any company in North America.
“If you think about the world’s great brands, Nike is one of them,” said Tennessee Gov. Bill Haslam. “And when Nike makes their largest investment outside of Oregon right here in Memphis, Tennessee, it helps our brand.”
Nike’s substantial investment has the potential to be a bellwether of economic growth in the North Memphis neighborhood that in many ways has lived and died by the factory.
Residential interest in the area began in 1942 when International Harvester announced plans for a factory north of the Wolf River, and the neighborhood experienced an extended economic downturn after International Harvester and several other factories
such as Firestone closed their doors for good in the early 1980s.
In 2008, Nike began operations at the $135 million, 1.1-million-square-foot distribution center on the border of Frayser and Raleigh. With the 1.7-millionsquare-foot expansion complete, both Nike officials and local politicians hope the complex, which employs around 1,900 people, will breathe new life into the area.
Nike also operates facilities on Shelby Drive and on Winchester.
“As we grow, NALC Memphis will play a critical role in the evolution of our brand,” said Eric Sprunk, Nike’s chief operating officer. “When we opened our first distribution center in Memphis in 1982, our revenue was just over $693 million. Yesterday, we reported that our global revenues were $30.6 billion.”
Nike officials said the Frayser facility was built to process as many as 271 million units per year, and will consolidate three product engines — footwear, apparel and equipment — into one facility, a first for Nike in North America.
“When it comes to serving our consumers, when it comes to supply chain and logistics, we’re determined to lead,” Sprunk said.
Officials credited Memphis’ intermodal capabilities as a major reason for choosing to invest in the city.
“We can send product via truck, via rail, via air or even port,” said Marcus Buford, general manager of the Memphis facility. “Memphis is also right here in the heart of the country, so that means we can reach about 45 states by truck within two days. When you think about it, why go anywhere else?”