Restart: The Business of Warehousing in North America in the Post-Pandemic Era
The Latest Benchmarking Costs, Prices, and Practices for North American Warehousing Available in a New Report from Armstrong & Associates, Inc.
Brookfield, WI, April 19, 2023 – Armstrong & Associates, Inc. (A&A) www.3PLogistics.com estimates that for 2022, the total U.S. Warehousing Market reached $246.0 billion, with VAWD (Value-Added Warehousing and Distribution) gross revenue having 22.7% growth to $67 billion and net revenue reaching $49.8 billion with 21.1% growth. Total U.S. Warehouse Inventory Space reached an estimated 11.7 billion square feet by the end of 2022. To track the most up-to-date costs, pricing, and practices in North American warehousing, A&A collected information from various contract warehousing operations and warehouse contracts in North America. The results are published in a report released today, “Restart: The Business of Warehousing in North America in the Post-Pandemic Era, Market Size, Major 3PLs, Benchmarking Costs, Prices and Practices.” The report is the latest in A&A’s series of Warehousing studies, which have been instrumental resources to the industry for over 17 years.
In addition to market estimates, warehousing operators and customers of third-party logistics providers (3PLs) will find how the warehousing industry has changed significantly prior to and after the pandemic shutdowns and subsequent demand increases. This report includes but not limited to:
- Extensive guidelines for warehouse pricing
- A&A’s Top 50 North American VAWD 3PLs
- Capability and technology benchmarks
- Contract lengths, warehouse sizes, and revenues
- Operating margins, expected versus actual results
- Warehouse ownership, primary warehousing handling types, and warehouse management systems being utilized
- Advanced breakdowns of contract warehouses including VAWD revenue and space by region and commodities handled, dedicated versus multi-client warehouse space by region, warehouse case inventory throughput by region and commodities handled
- Open and closed book, gainsharing, and contract payment terms
- Market rental and vacancy rates
Top 50 North American VAWD 3PLs
A&A’s Top 50 North American VAWD 3PLs list—representing 4,272 facilities totaling 1,046.1 million square feet of warehousing space—includes data on leading 3PLs, including number of warehouses, total space, warehouse and value-added service capabilities, and warehouse management system (WMS) deployment. The Top 50 have an average of 85 warehouses with an average size of 283,067 square feet.
U.S. 3PL E-commerce Revenue
We estimate that U.S. 3PL E-commerce Revenues reached $35.3 billion in 2022, producing a 5-year CAGR of 29.8%. 2021 saw the highest year-over-year growth since 2017, reaching as high as 59%, as e-commerce purchases spiked due to the pandemic and shutdowns. For 2022, we estimate 18% growth for U.S. 3PL E-commerce revenue as the market returns to normalcy at pre-pandemic levels.
This market sizing and benchmarking data, only available from A&A, is a valuable desktop reference. The complete report and other A&A research can be found at: https://www.3plogistics.com/product-category/guides-market-research-reports/market-research-reports/
ABOUT ARMSTRONG & ASSOCIATES, INC.
Armstrong & Associates, Inc. (A&A) was established in 1980 to meet the needs of a newly deregulated domestic transportation market. Since then, through its leading Third-Party Logistics (3PL) market research and history of helping companies outsource logistics functions, A&A has become an internationally recognized key resource for 3PL market information and consulting.
A&A’s mission is to have leading proprietary supply chain knowledge and market research not available anywhere else. As proof of our continued work in supporting our mission, A&A’s 3PL market research is frequently cited in media articles, publications, and securities filings by publicly traded 3PLs. In addition, A&A’s email newsletter currently has over 88,000 subscribers globally.
A&A’s market research complements its consulting activities by providing continually updated data for analysis. Based upon its unsurpassed knowledge of the 3PL market and the operations of leading 3PLs, A&A has provided strategic planning consulting services to over 40 3PLs, supported 24 closed investment transactions, and provided advice to numerous companies looking to benchmark existing 3PL operations or outsource logistics functions.
For more information, please contact:
Senior Research Analyst
Armstrong & Associates, Inc.
13400 Bishops Lane | Suite 70
Brookfield, WI 53005 USA
Phone: +1-414-545-3838 Fax: +1-414-545-3906
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