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PACCAR Parts Establishes Louisville, Kentucky, Distribution Hub

PACCAR Parts, as the distributor of aftermarket parts for heavy- and medium-duty trucks, trailers, buses and engines, broke ground on a $52.2 million, state-of-the-art parts distribution center in Louisville, Kentucky. The project is expected to create 80 full-time jobs.

The company broke ground on what will be a 260,000-square-foot facility for motor-vehicle-related parts distribution, including original equipment and replacement parts and aftermarket products. According to state officials, the location will allow the company to increase parts availability for dealers and customers in the central, mid-Atlantic and southeastern regions of the U.S. and provide parts capacity to support new truck and engine models. The facility is expected to be operational in 2022.

“The Louisville parts distribution center will use the latest technologies to reduce the time between order placement and delivery, allowing us to maximize uptime for customers,” said Jim Walenczak, PACCAR Parts assistant general manager, operations.

To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in March 2019 preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $500,000 in tax incentives based on the company’s investment of $52.2 million and annual targets of creation and maintenance of 80 Kentucky-resident, full-time jobs across 10 years and paying an average hourly wage of $23.50 including benefits across those jobs.

Additionally, KEDFA approved PACCAR for up to $1 million in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing. By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.In addition, PACCAR can receive resources from the Kentucky Skills Network.

“PACCAR Parts is a world-class company, and I am proud its leaders chose the commonwealth to expand its global operations,” Governor Andy Beshear said. “The company will help us to build a better Kentucky by providing competitive wages and benefits for the people of Kentucky and will have a positive impact on our economy and the local community.”

The new location is the company’s 19th parts distribution center, increasing the company’s global footprint to more than 3.4 million square feet of warehouse space.

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