Walmart to invest $350 million in Cullman distribution center renovation and automation
The Walmart regional distribution center in Cullman was built in 1983, and 40 years later it will get a major renovation. The company will invest $350 million over the next several years to automate the facility.
"The largest single year we have ever had in Cullman County...this is really a significant number. You would have to think, if they've been here since 83', that's an old plant, equipment and material, and modernizing, we think we got them for another 20-25-30 years, and that's exciting," explained Dale Greer with the Cullman Economic Development Agency
With the distribution center, and two retail stores, Greer said the company employs more than 2,000 people in Cullman. The city has a population of 18,000, and the county sits at 89,000.
Walmart said it will use the millions of dollars to bring automation, robotics, and artificial-intelligence powered software to the center. It will allow it to ship twice as many cases than before the technology. Walmart said the technology will evolve manual jobs into those that offer skills in robotics and technology.
Walmart is renovating all of its 42 regional distribution centers.
"If you're not growing, I think you're dying. I think you have to grow, and I think your have to modernize. This is a process that will take them three years or longer to do. They think the attrition will handle anything short term they need to do,so no layoffs. This distribution center serves part of Alabama, part of Mississippi, Tennessee, part of Georgia. Walmart continues to add more stores, as they continue to grow, I think our service area will grow. We will have more stores in those regions, and that will handle any attrition that you lose," said Greer.
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To help secure the multi-million dollar investment, the city of Cullman approved a $20 million tax abatement over the next 10 years for Walmart, if it holds up its end of the investment.
"That's very common in the economic development world to entice people to stay with you, or new ones to come in, but we never abate the school tax, so the schools will immediately benefit from this investment," explained Mayor Woody Jacobs.
The abatement does not apply to the education portion of the property tax. The center is 1.3 million square feet.
"Companies still have the opportunity to go somewhere else, to do something different. If the other four Alabama communities are doing the abatement for their distribution centers, then you need to do it too," said Greer.
View Walmart's full release on the automation renovation here.
Walmart currently employs more than 41,000 associates in the state.
Note: ABC 33/40 reached out to Walmart to find out if they anticipate any decrease in the number of employees at the center due to automation, or train existing ones in the technology. Walmart has not responded.