Warehousing Market Pegged at $25.7 Billion

Jan. 14, 2005
The U.S. public and contract warehousing market accounts for $25.7 billion in revenues but earns just 2.7% profit margins on those revenues

The U.S. public and contract warehousing market accounts for $25.7 billion in revenues but earns just 2.7% profit margins on those revenues, according to a report by Armstrong & Associates. The contracts considered in the recent study ranged from one to seven years, with most ranging from three to five years.

Short-term contracts are not popular with logistics managers. Only 9% of contracts covered in Warehousing in the United States were of a one-year duration. This supports a conclusion of the report that the market is shifting from public warehousing to contract warehousing. Though longer terms are preferred, long contracts are also less attractive - only 14% of those reported spanned more than five years.

Public warehousing pallet handling charges vary regionally from $4.70 to $5.86, the report said.

Latest from Transportation & Distribution

96378710 © Nattapong Boonchuenchom | Dreamstime.com
#53673151@Petar Dojkic|Dreamstime
Trucking Industry Objects to DOL Rule on Contractors
Trucking Industry Objects to DOL Rule on Contractors
Trucking Industry Objects to DOL Rule on Contractors
Trucking Industry Objects to DOL Rule on Contractors
Trucking Industry Objects to DOL Rule on Contractors