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Home > Business/Finance > Diversified Services > Shipping & Logistics
Warehousing and Storage
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| Published Date:
October 2009
Published By:
First Research, Inc.
Page Count:
10
Order Code:
R3470-3207
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The US warehousing and storage industry includes about 7,000 companies with combined annual revenue of about $20 billion. Major companies include CEVA Logistics, DHL's US logistics business, and GENCO. The industry is fragmented: the 50 largest companies generate about 40 percent of revenue.
Many warehousing and storage companies also provide logistics services, which are covered in the Freight Shipping Services profile. Lessors of miniwarehouses and self-storage units are covered in the Self-Storage Services 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 labor-intensive: average annual revenue per employee is about $30,000.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major services include general warehousing (about 65 percent of industry revenue) and refrigerated warehousing (20 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 for varying periods. The space is usually protected against fire and theft, and may be ...
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