FedEx Freight has started operating out of a new, expanded Sioux Falls location.
The 76-door building is an increase from the 49 doors the company previously used to operate out of in Sioux Falls and allows for potential expansion.
“We consider this a large market, serving the largest metro in South Dakota, so this is an above-average-size building,” said Jeff First, senior vice president of operations for FedEx Freight.
“Sioux Falls has been growing at a pretty fast rate, and we had been watching trends over time. Three to five years ago, the data provided the direction we needed to invest in this facility long term.”
The location includes a 55,000-square-foot building that brings office and fleet maintenance space under one roof and leaves about 35 percent as “solid room for growth,” he said.
FedEx Freight employs more than 70 people in Sioux Falls, and more than half of them are drivers.
“All our drivers are home every night, they drive trucks that have all the latest technology and safety, and all the amenities are there, including compensation, retirement and benefits,” First said. “These are the best jobs around.”
In addition to drivers, there are team members who operate forklifts, load and unload shipments and support a full shop operation, in addition to administrative and customer service roles in the office.
“Anytime you open a new building, it creates opportunities,” First said.
“The bigger the building, the greater the opportunity to expand and grow and think differently. FedEx Freight will continue to expand in strategic markets where we have a need for additional capacity, which will better position us to meet growing customer demand.”
The Foundation Park location with easy access to interstates 29 and 90 is ideal for logistics operations, said Dean Dziedzic, vice president of economic development for the Sioux Falls Development Foundation.
“We’re thrilled to see this new location open and think it’s an ideal fit for Foundation Park,” he said. “Bringing enhanced shipping capabilities benefits our entire business community and broader region, and we’re excited to see the success we know awaits here for FedEx Freight.”
FedEx Ground opened a 330,000-square-foot building at Foundation Park a few years ago.
Locating in the same development park isn’t common for the two because the timing generally doesn’t align, First said.
“We agree it’s a great location,” he said. “We have a lot of opportunities to move freight across this part of the country from here and do it while creating jobs in Sioux Falls.”
While FedEx Ground manages packages, the team at FedEx Freight manages and delivers palletized, heavyweight shipments to residential and business customers and picks up from customers in Sioux Falls who want to reach any of the Lower 48 states.
“We deliver things like patio furniture, grills, large TVs that won’t go on the conveyor belt for small trucks,” First said. “People might be doing projects in their homes and have pallets of stone or hardwood flooring delivered, and cold plunge tanks also have become increasingly popular.”
The company also continually incorporates new technology into its operation, including an industry-leading system that allows precise measurement of dimensions and weight while moving.
“It allows the entire dock operation to flow without interruption,” First said. “We scan shipments three times to validate it, and it has lots of advanced technology. We use it to effectively operationalize the planning and execution of our business.”
FedEx Freight embraces a “people-first” culture that emphasizes safety and creating a work home for the team, he added.
“When you see our equipment in a state-of-the-art facility, it sends the right messages,” he said. “The people behind the wheel of the forklift or behind the wheel of the truck matter most and are top of mind in everything we do.”
In Sioux Falls, he sees a community that values the company, he said.
“It can sometimes be hard to find the right piece of land, a developer and city that wants you to be there all at the same time. But we build our facilities first class and put a lot of effort into aesthetics, so I’m really excited about the possibilities of doing more in this building,” he said.
“We believe we’re in the right location with the right doors at the right time.”