Evansville-based Ridgecrest Holdings LLC, parent company of eLuxury and ePackageSupply, is building a $15 million warehouse in Warrick County that will bring the two e-commerce companies' inventory and some of their operations under one roof. can be integrated under.
eLuxury sells mattresses, furniture, bed and bath products, and ePackage Supply sells food and industrial containers. Paul Saunders, president and founder of all three companies, told Inside INdiana Business that the expansion will nearly double the company's current warehouse fulfillment distribution space.
“Currently, we have a total of four locations, approximately 250,000 square feet. [additional] “If we have 150,000 square feet, we can expand to 400,000 square feet with rapid expansion plans,” he said.
In August, Ridgecrest Holdings held a groundbreaking ceremony for a new facility on North Warwick Industrial Park in Elberfeld. The warehouse is located near the intersection of Interstate 69 and Interstate 64. Sanders plans to add 30 to 40 new jobs and open a warehouse by mid-2024.
“This was a big investment for us, but it was also a big commitment,” he said.
e-commerce adventure
Mr. Sanders founded Exceptional Seat Inc. in Evansville in 2009 after serving in the military and working for Whirlpool & Mead Johnson. In 2012 he changed the company name to eLuxury.
In 2014, eLuxury acquired its largest supplier in Tennessee and worked with state and city officials to relocate manufacturing to Evansville several years later. By 2016, eLuxury was named his fourth fastest growing private company in the United States by his Inc.
In 2018, North Carolina-based Culp Inc. completed a majority ownership investment in eLuxury. However, Sanders bought back his shares during the 2020 pandemic and launched ePackage Supply the same year.
Sanders attributes his e-commerce company's success to keeping operations in-house.
“The backbone of our foundation is operational, so while many other companies outsource that to third-party logistics services such as Amazon, we are committed to doing it ourselves. ,” he said.
North Warwick Industrial Estate
When Sanders started looking for expansion opportunities, he didn't find many warehouses for sale.
“We had to start thinking: If we don't have anything to buy, what if we build it? And when you consider all the raw material costs, availability, lead times, etc. “It was a complicated process,” he said.
Saunders said Warrick County offered the perfect location for the warehouse and a “pretty favorable program” to attract business. Steve Roelle, executive director of Success Warrick County, told Inside INdiana Business that the partnership was organic.
“They were looking at the area and what was available and North Warwick Industrial Estate was one of those key areas,” he said. “Then it became a conversation about making sure it was right for the community and right for the growth and success of the community.”
Current tenants at the North Warwick Industrial Park include Pepsi, North American Lighting and Phoenix Specialty Films, a Florida-based food packaging film supplier.
“As a community and a geographic area, we are probably the best place to do warehouse fulfillment and distribution, especially for anyone doing logistics or supply chain on this side of the Rocky Mountains,” Sanders said. said.
“Warrick County is looking to expand that corner off Elberfeld where Interstate 69 and Interstate 64 meet. It is a natural benefit for society,” Roel added.
“A challenging year in banking”
Sanders credited Field & Main Bank, located in Henderson, Kentucky, with helping launch eLuxury and ePackage Supply's new warehouses. Kyle Fuller, the community bank's first vice president and senior commercial lending officer, told Inside Indiana Business that Sanders and Anderson Capital Partners approached him about the project.
“A lot of other banks have closed their doors and said, 'Why don't you come back next year?' Let's see how all this is resolved. Let's wait and see if we're back on better footing,'' Fuller said. “We looked at what they were trying to achieve, rather than making broad statements like some of the big banks.”
Fuller said economic uncertainty this year has prevented many financial institutions from closing deals.
“2023 has been a difficult year for the banking industry. Rising interest rates, inflation, all these economic factors are creating challenges not only for banks but also for their customers. Overall it has become harder to get things done. “I'm just there,” he said. “A lot of this region has become a suburban market for the big banks. That's where they don't want to put a lot of resources and talent… They prefer bigger markets.”
But Sanders' insistence that time was of the essence persuaded Fuller to take action. “Paul was telling us, 'We have to do it now.' We need expansion, we need space, and we want to take advantage of it before other people do. If I If we don't get this site, if we don't get this spot in the industrial park, someone else will get it. So we're ready to tackle it today. ,” Fuller said.
“We spent probably three months working with Paul and his team to figure out all the contingencies, details, data… to not only make the best decision, but to create the best structure and what we feel is We've made sure we have everything we need to put this together in a way that we're going to be successful no matter what happens with interest rates, no matter what happens across the economy,” Fuller added.
Entrepreneur support
Sanders said construction is progressing well so far and the warehouse should open by late second quarter or early third quarter of next year.
“We were very lucky with the weather. Danco did a great job as our general contractor. We're a little ahead of schedule right now. All the earthwork is done. We started with the concrete foundation. All the steel has been delivered. ” he said.
There is also room for future expansion to accommodate the growth of eLuxury and ePackage Supply.
“They actually have a second lot on the side and back of this facility where they could put another 150,000 square feet,” Roel said.
In addition to creating jobs, Fuller believes the warehouse project will also help develop niche markets in the local community.
“E-commerce is not very strong in this area,” he says. “People like Paul are the lifeblood of community banks because they are entrepreneurs operating in areas that may be a little unique or hidden gems for our region.”
For other entrepreneurs looking to expand their ventures or start their own businesses, Fuller advises them to take advantage of all the resources they can find, from grants to grants to government programs to Small Business Administration loans. did.
“There are a lot of incubator-type programs that help people not only start new businesses, but also grow existing businesses to the next level,” he said. “It’s important to take advantage of these programs and resources, but it’s also important to have industry experts to support you.”
Managers who want to continue to run more fulfilling businesses need to evaluate all options rather than being satisfied with the status quo.
“Don't get so hung up on putting your eggs in one basket and say, 'Well, that's the person I've always worked with,' whether it's a big bank or whoever. Maybe even a small bank. There are a lot of contradictions in the market, so getting a second opinion is very important,” he said.
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