RK Logistics Accelerates Silicon Valley Expansion Plans

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RK Logistics Group is accelerating its expansion into Silicon Valley with new facilities, company leadership detailed Oct. 19.

The shift in plans came as a result of increased demand, supply chain disruptions and new customers in the semiconductors and automotive manufacturing sectors. The coronavirus pandemic has driven some of those factors.

“A lot of the semiconductors companies are involved in the 5G technology,” RK Logistics President Rock Magnan told Transport Topics. “That is part of the reason they were deemed an essential industry. So that’s picked up quite a bit. The other piece that we have been very successful with is automotive, specifically electric cars.”

The coronavirus helped drive the expansion in a few ways. RK bolstered Silicon Valley operations because of increased tech demand related to medical equipment and testing. This was coupled with supply chain disruptions such as a decrease in imports. The pandemic also opened up properties in the area while driving down prices.

“The third piece that we capitalized on that has been good for us is we have a long-standing history with some companies in the health care business,” Magnan said. “In all honesty, we had a few accounts that had to downsize because of COVID. That happens as well, but our growth directly related to COVID has more than outpaced our loss in business.”

RK Logistics Group is adding a 40,200-square-foot warehouse in Hayward, Calif. The company also is renewing its lease at a 42,000-square-foot facility in Fremont, Calif. Also, RK is making plans for a 100,000-square-foot warehousing and distribution facility to open early next year. — Transport Topics

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