As it approaches the one-year anniversary of opening its doors on the Opportunity Corridor, the Nor-Am Cold Storage facility represents both a significant economic investment in the Fairfax neighborhood as well as a continuance of strategic initiative by JobsOhio to attract more cold food storage and food production facilities to our state.
Located at 2797 E. 75th St., the
$50 million frozen food distribution hub opened its doors in March of last year, celebrating its official grand opening this past October. It came as a welcome answer to local officials who feared that economic development along the much-touted Opportunity Corridor was off to a cold start.
Turns out, a “cold start” was just what was needed.
“We understand that building cold storage facilities is a complex undertaking that demands careful planning, investment and ongoing operational management to succeed,” says Kevin Chambers, managing director of Logistics, Distribution and Supply Chain for JobsOhio, who works on the business sector along with Tim Derickson, managing director of Food and Agribusiness. “Cold storage facilities are capital-intensive to build and operate, so it’s important to choose locations with good market demand. Ohio is primed for cold storage investment.”
The space is a “156,000-square-foot, state-of-the-art cold storage facility and the first development on the Opportunity Corridor,” adds Chambers. “It helps to address the region’s food storage needs and positions Northeast Ohio as a link in the supply chain for food manufacturing and processing companies in and outside of Ohio. The strategic location and proximity to an abundance of customers was selected to attract additional business and promote future development along the Opportunity Corridor.”
Ohio’s Midwest location is within a day’s drive of over 60% of the U.S. and Canadian populations.
“Ohio is also home to more than 1,600 (food) manufacturers, many of which must contract with third-party facilities to meet cold storage needs,” adds Chambers. “Because of Ohio’s central location and multiple transportation options, it is an ideal place for food manufacturers and logistics companies to store and distribute products cost effectively.”
Building a cold storage facility in Ohio can provide proximity to agricultural sources, allowing for efficient storage and distribution of perishable goods, Derickson notes. The demand for cold storage facilities is increasing due to various factors, including the growth of e-commerce, changing consumer preferences and the need for improved safety and quality. By building in Ohio, developers can tap into a market with rising demand for temperature-controlled storage and distribution services.
“The need for cold storage in the United States is expected to double in the next six years,” says Derickson. “Currently, Ohio has 45 refrigerated storage facilities. Assuming the state follows national trends, cold storage capacity in Ohio should also double by 2030.”
Cold storage facilities do consume significant amounts of energy to maintain lower temperature, especially with the upcoming warmer weather.
“Energy prices in Ohio are lower than the national average thanks to our deregulated electricity market,” says Chambers. “Ohio has a vibrant business ecosystem, with industry associations, research institutions and technology hubs that support innovation and collaboration. This ecosystem can provide opportunities for partnerships, knowledge sharing and access to emerging technologies in the cold storage industry.”
While the Nor-Am facility is helping to position Ohio as a leading food storage and production nexus, it is also having a positive effect on the Opportunity Corridor as a destination for future economic development.
