Medline Officially Opens New Nearly 1.4-Million-Square-Foot Distribution Center

John Jordan | August 2, 2022

The Medline facility on Route 416 in Montgomery is the largest building in Orange County.

MONTGOMERY—A host of state, county and local officials joined Medline executives on Monday for the official opening of its nearly 1.4 million-square-foot distribution center here.

The facility, the largest building in Orange County, according to Orange County Partnership President and CEO Maureen Halahan, cost more than $120 million to build. The new Medline property handles the distribution of thousands of individual products and devices shipped to healthcare providers, such as hospitals, nursing homes, ambulatory surgery centers, hospices and physicians’ offices. The Montgomery facility is expected to handle more than $1 billion in annual orders. Medline is also in the process of completing a 7.4 megawatt (MW) solar panel installation at its Montgomery property.

In exchange for Medline’s commitment to retain 344 jobs and create 266 new jobs, Empire State Development has awarded the company up to $10 million in Excelsior Jobs Tax Credits. Medline relocated its operations from a 500,000-square-foot facility in Wawayanda which it had outgrown.

The project was not without controversy. During the approval process, Medline opted out of securing benefits from the Orange County Industrial Development Agency after receiving criticism from some opponents, including State Sen. James Skoufis.

“Medline is a long-standing corporate citizen of the Hudson Valley, and we are honored to have the opportunity to celebrate the opening of our Montgomery facility with our 700-plus employees and community members that have supported us throughout the years. Thank you for joining us on this special day,” said Tom Fallon, director of operations for Medline’s Montgomery distribution center.

Orange County Executive Steve Neuhaus praised Medline’s commitment to Orange County.

Orange County Executive Steven M. Neuhaus said at the ribbon-cutting event, “This project will create hundreds of jobs for Orange County residents, and I know that Medline’s distribution center will thrive in Montgomery. Medline’s expansion will also increase the company’s distribution capacity. As we re-establish a post-COVID economy, we need to take steps to manufacture in America and have solid distribution networks. Medline is helping to fulfill an important part of that critical effort.”

“The Medline project has checked all the boxes when it comes to being environmentally sustainable, creating sound jobs with benefits, beautifying Montgomery’s industrial corridor, and keeping our hospitals and healthcare facilities fully stocked and functioning even during the most critical of times,” added Halahan. “They are a company with dignity and integrity and this expansion not only saved hundreds of jobs it created hundreds more.”

Brian Maher, Montgomery Town Supervisor, singled out Medline’s assistance to the town during the early days of the COVID-19 pandemic. “Medline has gone above and beyond to support the greater Town of Montgomery community in a very short period of time. When the pandemic hit more than $80,000 was diverted to assist small businesses with grants, hundreds of thousands of dollars was donated to support several community projects and just last week Medline offset travel expenses so the Montgomery Little League Softball Section Champions could compete in the State Finals.”

He added, “On top of becoming one of the top economic engines and employers in the town and county, Medline continues to find new and create ways to support our community. We are proud that Medline has made a home in Montgomery and we look forward to growing our relationship for many years to come.”

The Montgomery distribution center is a part of Medline’s $2-billion Healthcare Resilience Initiative, a national capital expenditure campaign that included new distribution centers, manufacturing capabilities and information technology (IT) upgrades to further their commitment to delivering superior customer service. Medline supports small businesses and plans to spend approximately $1 million annually with local vendors for maintenance, upkeep and operations support of the Montgomery distribution center.

Medline, which is headquartered in Northfield, IL, serves the nation’s top healthcare systems, operating more than 50 distribution centers and over 20 manufacturing facilities across North America. Medline distributes 300,000 unique medical products, including more than 65,000 manufactured by Medline.

John Jordan
Editor, Real Estate In-Depth