Polaris Industries begins construction Tuesday on a new $47 million distribution center in Nevada that will serve the West Coast, span 475,000 square feet and employ 100 workers once completed next year.
Officials with Medina-based Polaris, a manufacturer of outdoor recreational vehicles, said the building in Fernley, Nev., will help Polaris better distribute products from the company's growing aftermarket division, which includes parts and accessories. The unit generates about $2 billion a year.
Building the new center "will create a competitive advantage for our business and help us meet demands of our dealers and customers for years to come," said Steve Eastman, president of Polaris' aftermarket and parts unit. "As we explored our options for distribution expansion, Fernley quickly rose as a top location, given the city's proximity to our dealers and customers throughout the western part of the United States, its experienced workforce and accessible transportation routes."
The new center will be built by Minneapolis-based Ryan Cos. It will be Polaris' first distribution center in the western part of the country and will handle products across various Polaris brands.
The project is Ryan's first in Nevada.
The project received tax abatement help from Nevada.
The new distribution center is the latest expansion for Polaris, which opened a new factory in Alabama in 2016, a new showroom in India in 2015 and a new plant in Poland in 2014. It also expanded into new offices in Plymouth in 2014.
Polaris CEO Scott Wine has said trade tariffs imposed by the United States, and resulting retaliatory moves, have put pressure on the company. For example, it is moving some Indian Motorcycle production from Iowa to Poland.
The unexpected trade tariffs and resulting trade wars will cost Polaris $40 million this year, Wine told analysts recently, and said he was concerned that the costs could grow. He called the trade wars one of the company's biggest threats.
The tariffs and rising raw material costs have prompted Polaris to increase prices and surcharges on various products but has not yet stalled investments such as the Nevada center.
Polaris' stock price fell nearly 2 percent Monday to close at $108.75 a share.