Overview of Warehousing in North America

Commercial warehousing in the United States has reached nearly $3.3 billion according to a new report by Armstrong & Associates (Stoughton, Wis.). The number of commercial warehouses is estimated at 7,900 with 1.25 billion sq. ft. of space. Overall the sector grew 9.7% in 2006.

Armstrong's report, "Warehousing in North America-2007," contains detailed information on the contract and public warehousing markets, including operating margins, EBITDA and EBIT distributions. The report tracks the growth of contract warehousing and the decline of public warehousing. Some more highlights:

  • Three-year contracts cover 54% of the market.
  • The four primary variables of warehouse pricing models are space utilization, labor, administrative costs and margins.
  • Public warehousing pallet handling charges vary regionally from $5.75 to $6.79.

Armstrong & Associates also publishes Who's Who In Logistics. Recent research papers include: "Is Bigger Better? Third-Party Logistics Financial and Acquisition Results for 2005," and "Trends in 3PL/Customer Relationships."

Source: Armstrong & Associates.

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