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Tractor Supply Beefs Up Last-Mile Delivery; Foxconn Looks to Make AI Servers in Ohio

By Mark R. Long

 

Tractor Supply sells goods from livestock feed to apparel. PHOTO: CJ GUNTHER/SHUTTERSTOCK

Tractor Supply is revving up its final-mile fulfillment operation. The WSJ Logistics Report’s Liz Young writes that the Brentwood, Tenn., company is hiring drivers and renting fleets of vehicles to deliver more 50-pound bags of cattle feed, chicken coops, fencing and other bulky goods direct to its customers.

The retailer plans to fulfill more orders for delivery out of its 2,300 U.S. stores, as well as its 10 distribution centers and 10 so-called mixing centers, where it stows additional inventory close to stores. The delivery push comes as Tractor Supply aims to grow its digital sales to 10%-12% of its sales, from about 8% today.

Third-party delivery companies also may not be best suited to serve Tractor Supply’s many rural customers, the company’s chief supply-chain officer says. The company’s move comes as Amazon invests $4 billion in expanding its rural delivery network, and as other retailers including big-box chains Walmart and Target build up their final-mile capabilities.

 
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Number of the Day

92,547

Container imports, measured in 20-foot equivalent units, forecast to arrive at the Port of Los Angeles the week of Aug. 17, down 28% from the prior week and almost 32% from the same week in 2024, according to Wabtec's Port Optimizer.

 

U.S. Manufacturing

Foxconn acquired the facility from Lordstown Motors. PHOTO: MEGAN JELINGER / AFP

Foxconn plans to work with partners to convert a former electric-truck factory in Lordstown Ohio, into a plant making cloud-computing hardware for artificial-intelligence applications, people familiar with the plans say.

The Journal’s Yang Jie writes that the Taiwanese contract manufacturer’s move is symbolic for the American economy under President Trump. The president signed a budget bill ending EV subsidies but has promoted U.S. manufacturing of AI equipment and the construction of data centers.

Once the site of a General Motors factory, the facility was bought by a startup called Lordstown Motors to produce electric pickups. It only made a few before declaring bankruptcy. Foxconn acquired the facility, planning to join in producing vehicles until the partnership ended in acrimony. It sold the plant and its equipment for $375 million, but will continue operating at the site and “expand into new business areas,” it says.

 
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Quotable

“To be clear, losing Elon would not only mean the loss of his talents but also the loss of a leader who is a magnet for hiring and retaining talent at Tesla.”

—Two Tesla directors, in a letter to shareholders
 

In Other News

Orders from U.S. factories contracted 4.8% in June from May, declining for two of the past three months, the Commerce Department said. (WSJ)

An index of U.S. employment fell to its lowest point since October, as concerns rise about the resilience of the jobs market after large downward revisions to official data. (WSJ)

Trump said he would be “substantially raising” tariffs on India, currently set to jump to 25% this week, over its purchasing of Russian oil. (WSJ)

The European Union is preparing to suspend a package of retaliatory tariffs it had intended to impose on the U.S. if it failed to secure a trade deal by Aug. 1. (WSJ)

The Swiss government signaled it is prepared to make trade concessions to the U.S. after being stunned by an unexpectedly high tariff rate of 39% last week (WSJ)

Boeing workers at its St. Louis-area defense business went on strike after rejecting the aerospace company’s latest contract offer. (WSJ)

BP made what could be its biggest oil and gas discovery in 25 years in the deepwater Santos basin off the Brazilian coast. (WSJ)

Tesla’s board approved a stock award for Elon Musk that it tentatively valued at $23.7 billion. (WSJ)

Harley-Davidson appointed Artie Starrs, head of sports-entertainment company Topgolf, to be its new chief executive. (WSJ)

TGS Logistics shut down last week, the second California drayage company to fold in less than a month. (Journal of Commerce)

Japan’s Kawasaki Kisen Kaisha, or K-Line, expects the effect of U.S. auto tariffs to be lower than it previously forecast. (Bloomberg)

Chinese exports of surplus plastics this year are pushing down prices for producers in Japan and elsewhere. (Nikkei Asia)

Diana Shipping is now the biggest holder of Genco Shipping & Trading shares, with 9.99%, after buying an additional $15.8 million worth since July 17. (Lloyd’s List)

Ocean carriers have been warned to proceed with extreme caution near Yemen after Houthi militants last week vowed to escalate attacks on ships in the Red Sea. (The Loadstar)

Descartes Systems said it acquired cloud-based inventory-management company Finale Inventory for $40 million, plus a potential performance-based consideration of as much as $15 million.

Canada’s postal union members voted to reject Canada Post’s final contract proposals. (Supply Chain Brain)

Amazon broke ground on a new, 930,000-square-foot logistics center in Little Rock, Ark. (Transport Topics)

 

About Us

Mark R. Long is editor of WSJ Logistics Report. Reach him at mark.long@wsj.com. Follow the WSJ Logistics Report team on LinkedIn: Mark R. Long, Liz Young and Paul Berger.

 
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