Wilmington-based third-party logistics (3PL) company Precision 3PL recently grew its local footprint by moving into a 214,000-square-foot warehouse space on North 23rd Street.
Since its founding in 2021, the company has operated out of around 72,000 square feet at 312 Raleigh St., said McKenna Phillips, Precision 3PL’s vice president of operations. The new warehouse at 802 N. 23rd St. will help accommodate the company’s growth and ongoing demand for 3PL services.
“We're growing, and the need in the 3PL space is pretty strong, which is why we decided to move,” Phillips said. “I'm really excited about this space because we're moving into a 214,000-square-foot facility, and not only is that a win, but the location is just amazing when it comes to e-commerce fulfillment.”
The new warehouse is minutes from FedEx and UPS facilities and has easy access to the Port of Wilmington and Wilmington International Airport, Phillips said. She’s had her eye on the warehouse space for a while because of its prime location. The company has been planning its move for about a year, and decided to move ahead despite the uncertainty of tariffs from the Trump Administration, Phillips said.
Third-party logistics companies provide outsourced logistics services to businesses, so individual brands don’t have to manage day-to-day order fulfillment and shipping logistics, Phillips said.
“Basically, when someone purchases something off Amazon’s website, they think they’re buying it from the brand, but there's a lot more that happens behind the scenes,” she said, “and a lot of brands have made the conscious decision to outsource those logistics needs to 3PL providers.”
While the company’s current portfolio includes apparel and footwear brands, Precision 3PL supports a range of businesses that sell “anything and everything,” Phillips said.
The company began with supporting logistics for Wilmington-based Outdoor Equipped, which is the largest third-party seller in the footwear category on Amazon, Phillips said. Outdoor Equipped generated $153 million in sales last year and is projecting 15% growth in 2025, according to Phillips.
Precision 3PL provides 3PL services for around a dozen brands, including footwear companies Sebago and Superga, along with baby products company Arms Reach Concepts, Phillips said. The company completed its move into the new building last week and already has a “pretty full pipeline” of companies looking to fill the larger space.
“We have about seven that are in the pipeline,” Phillips said. “We're just waiting on the product to get over to our space, and then we're going to hit the ground running.”
Phillips said the tariffs put in place earlier this year have affected trends in the logistics industry.
“I think there was a little bit of a struggle trying to get inventory in when the tariffs were first announced and jacked up and then dropped back down and then back up again,” Phillips said. “And a lot of folks were kind of sitting on their hands a little bit, just waiting to see what would happen. But now they're sending product back through.”
Precision 3PL also operates a facility in Ogden, Utah, and the recent move brings the firm’s total facility footprint to 377,000 square feet, Phillips added. The company employs around 60 people in the Wilmington area and expects to hire more to staff the larger warehouse.
Phillips said the new facility will allow Precision 3PL to continue serving the logistics needs of businesses large and small.
"We're able to turn on a dime, just because of our experience in the Amazon space," she said. "We are able to provide that to our current partners, as well as future partners, to just make sure that our customers are happy, their customers are happy, and everyone's getting their stuff, because that's what it is about at the end of the day.”