FOR IMMEDIATE RELEASE

PICK IT: The Business of Warehousing in North America 2015 Market Size, Major 3PLs, Benchmarking Costs, Prices and Practices Report is Released by Armstrong & Associates, Inc.

Madison, WI, September 24, 2015 – In its comprehensive report, Armstrong & Associates, Inc. (A&A) estimates the total U.S. warehousing market for 2015 will be $141 billion.  Commercial warehousing will account for $65 billion.  The Third-Party Logistics (3PL) Value-Added Warehousing and Distribution (VAWD) market segment will be $39 billion.

The 3PL VAWD market segment grew 2.5% in 2014.  Of the VAWD third-party logistics providers (3PLs) reporting to A&A yearly, three had gross revenue growth exceeding 10%.  Overall, net income margins averaged 3.7%.  Warehouse vacancy rates have reached a level in key markets where growth should improve in late 2015 and 2016.

A&A’s Top 60 VAWD 3PLs have 3,540 facilities between them with 763 million square feet.  We estimate that there are 9,000 U.S. commercial warehousing facilities of size with 1.9 billion square feet of space.  The Top 60 have an average of 59 warehouses.  The average size is 215,456 square feet.

Modern VAWD 3PLs all have significant transportation management capabilities.  This report’s survey participants commonly have network transportation management and dedicated contract carriage (DCC) trucking operations.  Three-fourths of the participants have asset trucking operations including DCC.  Over half of those with network transportation management capabilities have control centers operating with major transportation management systems (TMS) platforms.  The participants use 87% of their total warehouse space for contract warehousing and 13% for public warehousing.

Commodities handled by the participants were split into 13 vertical industries.  The largest was Retail & Consumer Products at 26%.  Beverages & Food was 17% while High-tech/Computers accounted for 12%.  The smallest vertical was Aerospace at 1%.

Revenues per square foot by industry and by warehouse size are included in the report.

The complete report and other A&A research can be found at:https://www.3plogistics.com/shopsite/index.html.

About Armstrong & Associates, Inc.:

Armstrong & Associates, Inc. is a supply chain management market research and consulting firm specializing in strategic planning, logistics outsourcing, competitive benchmarking, mergers and acquisitions, 3PL service/cost benchmarking, and supply chain systems evaluation and selection. Armstrong & Associates’ Who’s Who in Logistics Online Guide to Global Supply Chain Managementprovides Internet access to its continually updated 3PL database. Recent research papers include “Right Price: Modern Freight Brokerage in the U.S.,” “Big Deal – 2014 3PL Results and 2015 Estimates,” “Global and Regional Infrastructure, Logistics Costs, and Third-Party Logistics Market Trends,” “Trends in 3PL/Customer Relationships,” “3PL Brand Recognition, RFP Activity and Expected Profit Margins for 3PLs – 2013,” and “Mexico: Trucking, Railroads and Third-Party Logistics Market Report.”

Source:

Armstrong & Associates, Inc.

3220 Syene Road, Suite 201

Madison, WI 53713 USA

Phone: +1-608-873-2110, Fax: +1-608-873-5509

Website: www.3PLogistics.com