FedEx Ground Package System will invest $76 million in a new regional distribution center (DC) in the Kansas City, Mo., metro, part of the company’s overall expansion strategy.

During the next five years, the company will build a 600,000 square foot facility in two phases at Northland Park in Kansas City, Mo. Construction on the first phase, which will encompass 215,000 square feet, will begin later this year. The second phase is scheduled to begin in 2010.

Initially, FedEx Ground will employ nearly 300 workers and independent contractors at the facility. At full capacity, the company will employ more than 800 workers.

No FedEx Ground facilities currently located in the metro will be adversely impacted by the new project.

The facility is part of a $1.8 billion nationwide expansion plan for FedEx Ground. The expansion will nearly double its daily package volume capacity from 2.5 million to 4.8 million by 2009.

Another well-known company is investing in its DC in the metro.

In an effort to transport its home care products faster and more efficiently to the western United States, Procter & Gamble Manufacturing Co. will invest $3 million to expand its DC operations in Kansas City.

P&G evaluated markets within its existing distribution network before choosing to locate the facility in Kansas City. The new operation will complement P&G’s manufacturing center in Kansas City, Kan.

Success Leads to Call Center Growth

The Kansas City metro is comprised of nearly 2.2 million people in more than 50 communities in two states. Companies looking to expand can find low-operating costs and a skilled and productive work force in the metro.

These attributes have helped make the metro one of the leading customer service and data center site locations in the country.

T-Mobile USA has experienced significant success at its call center in Lenexa, Kan., during the past several years, leading the company to expand its presence there.

The Bellevue, Wash.,-based company has sited a new customer service center in Lenexa. The company will eventually add about 700 employees to its current work force of 500 as a result of the $25 million investment.

The custom-built, high-tech, 78,000 square foot facility will support national and international accounts.

The Kansas City Area Development Council (KCADC), Lenexa Economic Development Council, the city of Lenexa and the Kansas Department of Council were part of the effort to convince T-Mobile to build the facility in Lenexa.

Another team effort helped attract a new data center to the metro.

American International Group (AIG) renovated and moved into a portion of a facility in Olathe, Kan., last year to convert claims and insurance documents into electronic files.

AIG will eventually employ about 300 workers in the state-of-the-art, 60,000 square foot facility.

The company selected Olathe over Dallas and Atlanta. KCADC worked with the Olathe Economic Development Council and the state of Kansas to lure the project.