News
December 21, 2025

Volvo Group to Build Tacoma Parts Hub

Construction Owners Editorial Team

TACOMA, Wash. — Volvo Group is moving forward with a major logistics expansion in the Pacific Northwest, announcing plans to invest $37.7 million in a new 115,000-sq.-ft. Regional Distribution Center (RDC) in Tacoma, Washington. The facility will strengthen parts support for Volvo Trucks, Mack Trucks, Volvo Penta, and Volvo Construction Equipment dealers across the Northwest United States and Western Canada.

Courtesy: Photo by  Birmingham Museums Trust on Unsplash

The Tacoma RDC, currently undergoing renovations, is expected to open in the first quarter of 2027 and will employ approximately 20 workers once fully operational. It will serve as the primary parts hub for roughly 240 dealers, cutting average stock-order delivery times by one to two days.

Beyond faster delivery, Volvo Group expects the new center to play a key role in lowering the company’s environmental footprint by positioning inventory closer to dealers, reducing long-haul transportation needs and associated emissions.

“This facility represents a significant expansion to the Volvo Group’s parts distribution capabilities, allowing us to reduce transportation lead times and improve reliability, especially for dealers in the more remote areas of Western Canada,” said Peter Andell, vice president of service market logistics for Volvo Group North America.

Once fully operational, the Tacoma facility is projected to process more than 500,000 order lines annually, helping ensure improved uptime for customers who rely on fast access to replacement parts.

The new RDC supports Volvo Group’s broader strategy to modernize its North American logistics network while aligning with its long-term sustainability goals. By centralizing parts distribution in a high-demand region, the company aims to boost operational efficiency, improve dealer service levels, and reduce CO₂ emissions tied to parts delivery.

Founded in 1927, Volvo Group provides transport and infrastructure solutions spanning trucks, buses, construction equipment, marine and industrial power systems, financing, and related services. Headquartered in Gothenburg, Sweden, the company employs more than 100,000 people globally and serves customers in nearly 180 markets. In 2024, Volvo Group reported net sales of SEK 527 billion (€46 billion).

Originally reported by Volvo Group.

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