Warehousing & Storage Industry Profile

Companies in this industry operate facilities to store goods and may provide related logistics services. Major companies include the US operations of CEVA Logistics, DHL's US logistics business, and GENCO.

The US warehousing and storage industry includes about 7,000 companies with combined annual revenue of about $26 billion and is expected to experience moderate growth in the next two years. Growth drivers include the state of the economy and the flow of goods.

Lessors of miniwarehouses and self-storage units are covered in the Self-Storage Services industry profile.

COMPETITIVE LANDSCAPE

Demand is driven by the flow of goods through the US economy. The profitability of individual companies depends on efficiency of operations. Large companies can win business from major customers by operating in multiple locations and by offering wider ranges of services. Small companies can compete effectively by specializing in particular industries or local markets. The industry is fragmented: the 50 largest companies generate about 40 percent of revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services include general warehousing (about 70 percent of industry revenue) and refrigerated warehousing (15 percent). Other services include records storage and farm products storage. Many operators provide contract warehousing services, in which a warehouse is dedicated to a single major customer. Others offer public warehousing services, in which warehouse facilities are shared by customers too small to require dedicated facilities.

Generally, warehousing and storage operations provide a protected space where customers can leave items ...