Citing economic uncertainty, Uline asks to pause warehouse development

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Shipping and packaging material maker Uline wants to pause development of a more than 1.2-million-square-foot facility planned in Kenosha, citing economic uncertainty and asking for a permit extension.

The company asked the city for a 12-month extension to a conditional use permit for a warehouse planned at 13333 38^th St., according to a company memo.

“Due to current economic conditions and available space within Uline’s existing network, construction of the WS Building will postpone to 2027 or later to meet the company’s demands,” wrote Brad Folkert, director of construction for Uline.

Last week, Folker told Kenosha Plan Commission the company won’t change plans the city approved.

The commission recommended the extension to the Kenosha City Council. If approved, Uline would have until June 2, 2027, to apply for a construction permit.

“I don’t think there’s any secret there’s unsettlement in the economy right now, we’ve been looking at that,” Folkert said at the meeting. “We were able to extend a couple of leases at our Pleasant Prairie properties that have put us in a position where right now, we’re pretty well set. And we’ll need an extension to push this back a little bit.”

In April 2025, Uline shared plans for a $120 million, 1.2-million-square-foot facility following completion of its “Mother of all warehouses,” the largest storage facility in Wisconsin at 1.44 million square feet.

Uline is owned by Richard and Elizabeth Uihleine, who are worth billions and donate millions of dollars to political campaigns. Their company employs around 9,000 people in North America.

Nearly half of respondents to a recent National Association for Business Economics survey said their business were affected negatively due to the conflict between the U.S. and Iran. Nearly quarter of respondents planned to scale back investment and hiring over the next six months.

More than two-thirds of respondents reported rising materials costs over the past three months, the largest share since 2022, and 44% noted costs had risen moderately to significantly, said Gregory Daco, NABE president.

Price inputs for construction materials were on the rise by 1.7% in April and 6.6% from April 2025, an analysis by the Associated General Contractors of America of government data showed. The producer price index for new nonresidential building construction increased 3.6% over the past year.

“Construction input costs continue to rise much faster than contractors’ bid prices, particularly for energy-intensive and metals-related materials,” said Macrina Wilkins, director of market insights for the Associated General Contractors of America, in a statement. “That gap is making it increasingly difficult for contractors to accurately price projects and raising the risk of delays, redesigns, and deferred construction activity if cost volatility persists.”