Daifuku Co. completed expansion of its Indiana manufacturing facility, doubling production capacity as labor shortages and rising costs drive unprecedented demand for warehouse automation across North America. The Japanese material handling giant invested $35 million (¥5 billion) to add 25,000 square meters of manufacturing space at its Hobart plant.
The facility expansion, set to begin operations in October, positions the company to capitalize on booming logistics automation market growth projected at over 10% annually through 2033. Daifuku’s U.S. subsidiary will produce conveyors, sorters and automated storage systems for distribution centers and manufacturing facilities.
The world’s leading material handling systems supplier for nine consecutive years, Daifuku established the Hobart plant in 2020 but quickly outgrew initial capacity. The expansion reflects broader industry trends as companies face persistent workforce challenges and seek automation solutions to maintain competitiveness.
Managing Officer Norihito Toriya indicated the United States represents Daifuku’s largest growth market, though the company’s aggressive expansion timeline raises questions about execution risks. With 84% of survey respondents citing safety concerns and 80% focused on cost containment, the timing appears opportune for automation providers willing to invest in domestic production capacity.
The 1,000-employee subsidiary previously operated under the Wynright brand before rebranding as Daifuku Intralogistics America Corporation in 2024.
