A California-based logistics provider has entered the Lone Star State with a 200,000-square-foot warehouse in Kyle that executives said will help service Central Texas' burgeoning automotive and semiconductor manufacturing industries.
RK Logistics Group Inc., which is headquartered in the San Francisco Bay Area city of Fremont, announced March 30 that its new facility in the Hays Logistics Center, 400 Vista Ridge Dr., will "manage inventories of electric vehicle batteries, parts and other general automotive production components and materials," from truck-delivered shipments and cargo containers that land at the Port of Houston.
The facility south of Austin with 71 dock doors will provide services such as inbound material receiving, inventory storage, management and staging, order picking and fulfillment and delivery of parts. It is expected to eventually employ 25 warehouse associates and material handlers.
RK Logistics representatives said the facility is "purpose designed to support automotive and semiconductor manufacturing industries."
"Austin's Silicon Hills is one of the nation's most vibrant and fastest growing markets for automotive manufacturing, in particular electric vehicles," RK Logistics President and Chief Operating Officer Rock Magnan said in a statement. "This is a highly strategic expansion for RK that leverages our 10 years of experience supporting the unique and specialized logistics needs of EV manufacturing in California's Silicon Valley."
The company operates in an industry know as third-party logistics, or 3PL, transporting other businesses' finished goods and components. Other 3PL companies in Austin include Arrive Logistics and Austin Freight Systems.
In 2018, RK Logistics reported revenue of $67.25 million, up 31% from two years prior. Clients it has worked with in Northern California include appliance manufacturer Miele, portable speaker developer Soundboks and Sole to Sole, Silicon Valley Business Journal reported.
The expansion fits into a wave of distributors and logistics companies setting up shop in Austin's suburbs, where land is cheaper and there is ample access to highways. They also want to be near new factories for companies such as Samsung Electronics Co. Ltd. and Tesla Inc. and their many suppliers.
Hays Commerce Center, being developed by HPI Real Estate, sits on 100 acres off I-35 in Northwest Kyle — a city about 20 miles south of downtown Austin with a population of roughly 52,000. Other companies that have pledged to move into the space include Redbird Flight Simulations Inc., a manufacturer of flight simulation equipment, and ATX Specialty Foods, a contract manufacturer of dips, sauces, dressings and marinades.
That now includes RK Logistics, which noted that for more than 30 years it has provided warehousing and supply chain management services to clients in sectors such as high-tech semiconductor manufacturing, automotive, retail, industrial and consumer goods. The company has 15 total warehouses nationwide comprising more than 1.6 million square feet, after recent openings in Northern California and Michigan.
Representative said in the announcement that the expansion into Texas — long fertile ground for car manufacturers, and an expected hub for the future of automotive production, thanks to the presence of Tesla and other EV companies — aligns with a "a strategy to grow with long-time customers in both traditional and emerging industries, as their manufacturing and supply footprints expand."
But they also noted that, like Northern California, the Austin market has become highly competitive.
"Quality warehouse space is at a premium as is the competition for material handlers and other skilled warehouse personnel," Magnan said. "With our focus on employees and a family friendly culture, we offer an excellent place to start a career and continue to grow in an exciting industry."