The Coast Distribution System Inc. announced today (Nov. 2) the opening of a new 190,000-square-foot- distribution center in Visalia, Calif.
The Morgan Hill, Calif.-based company, which supplies aftermarket products to the recreational vehicle and marine industries, said the facility is nearly twice the size of the distribution center it replaced in Visalia.
The company said the additional space will “better accommodate an increase in volume of proprietary products sourced overseas.”
“This move will result in increased operating costs and reduced gross margins in the short-term,” said Thomas R. McGuire, chairman and CEO. “However, we also expect this move to increase the volume of proprietary products we can source overseas, and as a result, help us better serve our customers and increase our profitability over the long-term.”
As part of the move, Coast will retain an option to expand the facility at a future date.