L.B. Foster is establishing a new distribution hub in Germany as the rail infrastructure supplier looks to improve product availability, reduce cross-border logistics complexity and support further growth across mainland Europe.
The company has appointed Expeditors as its strategic distribution partner for the operation, building on a relationship between the two businesses that has lasted for more than a decade.
L.B. Foster said the new model will bring products closer to European customers, improving responsiveness and delivery performance while strengthening resilience within its supply chain.
Importantly for the UK-headquartered operation, the company also expects the hub to remove some of the customs and commercial challenges that have affected movements between the UK and European Union since Brexit.
The new distribution operation is targeting readiness during the fourth quarter.
Tackling post-Brexit logistics challenges
For L.B. Foster, the investment represents more than an expansion of warehouse capacity.
By positioning inventory within mainland Europe and using Expeditors’ logistics network, the company intends to simplify the movement of products to customers while reducing the potential for customs processes and cross-border administration to disrupt deliveries.
That is particularly significant for suppliers serving railway infrastructure and other safety- and performance-critical industries, where product availability can directly affect maintenance programmes and operational delivery.
Jason Bowlin, Senior Vice President, Rail at L.B. Foster, said: “As customer expectations continue to evolve, efficient, reliable, and resilient supply chains have never been more important.
“Strengthening our partnership with Expeditors enables us to better support our European customers by removing many of the logistical challenges that have emerged following the UK’s exit from the European Union.
“This new distribution model is designed to help reduce delays, simplify customs and commercial processes, and improve overall delivery performance. Ultimately, it reinforces our ability to provide the high levels of service our customers expect while supporting our growth ambitions across the European market.”
Germany selected as European base
Germany was chosen for the new distribution operation because of its central European location, established transport infrastructure and L.B. Foster’s developing customer relationships across the Alpine region.
The company believes the combination will provide a scalable platform capable of supporting expansion across different markets and product segments.
Expeditors will bring its global logistics network, local market knowledge and supply chain capabilities to the partnership, while L.B. Foster provides its rail and infrastructure product expertise.
John Austin, Head of Segment – Friction Management, Europe at L.B. Foster, said: “We are targeting operational readiness in the fourth quarter and look forward to supporting our customers with faster and more efficient product availability.
“This initiative will help customers keep critical railway, industrial and mining operations running smoothly while improving responsiveness across the region.
“Germany was selected as our European distribution hub due to its central location, strong transport infrastructure, and growing customer relationships throughout the Alpine region. The investment positions us closer to our customers and provides a strong platform for sustainable long-term growth.”
Supply chain resilience increasingly important for rail
The move reflects a wider focus within the railway supply chain on resilience, lead times and the geographical positioning of stock.
For infrastructure owners and maintainers, security of supply can be as important as the product itself. Delayed components can affect maintenance activities and create additional pressure on programmes where access to the railway is already tightly planned.
Manufacturers and suppliers operating internationally must meanwhile manage customs requirements, transportation costs and increasingly complex supply chains while meeting customers’ expectations for faster and more predictable deliveries.
Holding products closer to the markets in which they are ultimately required can help reduce that exposure while giving suppliers greater flexibility to respond to changing demand.
For L.B. Foster, the German hub is therefore both a logistics investment and part of its wider European growth strategy. By shortening the supply chain between its products and mainland European customers, the company is aiming to create a more responsive distribution model capable of supporting critical rail and infrastructure operations while providing a platform for further expansion.
