DigiKey commits $100m to component picking and packing capacity

DigiKey is investing $100m over 18 months in its Minnesota distribution centre and order management system, adding automated packing and high-volume component picking capacity.

The first new packing system is already on site and is due to enter service this year. Further packing lines will follow, alongside additional picking bays and order retrieval automation at the Thief River Falls facility.

The distributor says it is on course for growth of more than 50% in 2026 and forecasts further double-digit growth next year. The investment is intended to support its same-day despatch operation as order volumes increase.

The work uses capacity built into DigiKey’s 2.2 million square foot distribution centre expansion, which opened in 2022. Parts of that building, including much of the fourth floor, were left available for subsequent expansion.

DigiKey says it holds more than 1.9 million products ready for same-day shipment from the centre. <p><a href="https://www.prnewswire.com/news-releases/digikey-commits-100-million-investment-over-next-18-months-to-expand-global-distribution-operations-302908388.html">DigiKey release via PR Newswire</a>.</p>