Digi-Key officially opened its 20.5-hectare PDCe with a Digi-Reel and ceremonial package delivery.
Digi-Key celebrated the opening event with an official ribbon-cutting ceremony for a Digi-Reel and the ceremonial delivery of the first package to each of the company's four shipping partners: DHL, FedEx, UPS, and USPS. Digi-Key President Dave Doherty, local public officials, and other Digi-Key executives gave speeches.
"This is an important milestone for all Digi-Key employees and for our community," commented Dave Doherty, President of Digi-Key. “The expansion of our new product distribution center will help us continue to deliver excellence to our customers for many years to come. As exciting as this expansion is for us, we actually hope our customers won’t notice the difference: the transition for them should be seamless and, if anything, result in an even better customer service experience than they’re already accustomed to. For us, it represents a deeper connection to Thief River Falls and a commitment to continue investing in this community and the state of Minnesota.”
The PDCe building was designed by Minnesota-based Widseth, and McShane Construction was the general contractor for the project. KNAPP, a leader in logistics and warehouse automation, partnered with Digi-Key for the internal automation and operating equipment.
“The state of Minnesota is thrilled to celebrate Digi-Key’s growth milestone today,” said Steve Grove, commissioner of the Minnesota Department of Employment and Economic Development (DEED). “Growth at this level benefits Digi-Key employees, the Thief River Falls community, and the state of Minnesota. The opening of this facility is made possible by local and state economic support that will contribute an additional $500 million in economic output and create more than 1,000 new jobs.”
This comes at a time of record growth for the company: Digi-Key ended 2021 growing faster than ever, with a 65% growth rate, and 2022 orders increased by more than 25% year-over-year. This year has also been one of the company's most significant in terms of supplier additions, with 250 new suppliers already added. Since construction began in 2018, Digi-Key has added 1,500 suppliers and 1.5 million part numbers to its inventory.
The new facility is almost entirely automated; the only task that is actually done manually is parts picking. Among the component racks, the carts are guided by wires, so the cart driver only needs to worry about where to stop. The wire-guided system will save more than 10% of the time and is significantly safer.
The expanded product distribution center features two primary conveyor systems to provide redundancy in case of failure and to allow for future growth. Scalability and growth were paramount in the planning and design of the new building, and most of the fourth floor is currently open. There are over 43.5 km of automated conveyor belts in the new facility, and the average order will travel nearly one kilometer within the building.
The building features six diesel generators and backup pumps, along with a water tank built for fire suppression. It also has its own storm sewer and runoff ponds to avoid contributing to flooding or water storage issues in the community.
The state-of-the-art facility boasts multiple common workspaces and break rooms with oversized windows for optimal natural light, as well as the Two Rivers Café, which offers a variety of food options, from ready-to-eat salads and burritos to burgers and paninis cooked to order. Additionally, local vendor Las Ranitas serves authentic Mexican food options in the café a couple of days a week. Digi-Key is recognized by the state of Minnesota as a breastfeeding-friendly workplace and has 16 private rooms for mothers throughout the PDCe for employees returning to work after maternity leave. The building also features a spacious quiet room for employees to take breaks, relax, and recharge.
Outside the new building is a community garden where employees can choose a plot for the summer and plant seasonal flowers, fruits, and vegetables. On the Skybridge connecting the original PDC to the PDCe building, there is a path called the "Digi-Walk," running its entire length, providing an excellent place for employees to take a short walk during their breaks.
Sustainability was also a key consideration during the planning and construction of the facility. The roof features a white membrane to reflect the sun's heat, sensor-activated LED lights to minimize electricity use, and a specially designed transportation system that maximizes energy efficiency.
