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Public Warehousing Demand to Continue Through 2021

January 18, 2021
5 min read
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two warehouse workers looking at an ipad in hardhats and hi-vis gear

E-commerce received a significant pandemic-driven boost last year and continues its surge in 2021. As a result, industrial logistics (including public warehousing) has become a top priority for many retailers and manufacturers. Whether they’re stocking additional inventory to accommodate fluctuating order volume or reducing dependence on China and diversifying their supply chain, warehouse space is in high demand.

Lingering Capacity Challenges Expected

The COVID-19 pandemic of 2020 shined a bright light on U.S. consumer supply and demand. Online order revenue jumped 45% from the first to the second quarter of 2020, and retail shipping jumped 89% during the 2020 holiday season. This increased consumer demand for products has placed an equally high demand on the supply chains which provide those goods.

Public warehousing space is at a premium. Providers are building and adding space, but it’s getting gobbled up, in many cases, before construction has even finished.

Vaccine availability should eventually help normalize supply and demand, but we’ll likely be looking at a new “normal.” While consumer goods demand may slow, pent-up demand for construction material, chemicals, auto parts, etc., will likely continue to maximize warehousing. Businesses that have modified or streamlined their supply chains or adopted a just-in-time inventory model may likely continue well after normalization. Hence, it’s incredibly challenging to accurately forecast how much public warehouse space will be available this time next year.

In the meantime, leaders in the logistics industry are advising shippers to navigate the complex 2021 landscape with its lower trucking capacity and limited warehouse space by focusing on:

  • Managing fluctuating prices
  • Securing capacity
  • Placing a greater focus on relationship-building

Amware Offers Public Warehousing

Warehousing is an essential component of the transportation logistics supply chain, yet not all warehouses are created equal. The ideal warehouse uses the most modern equipment and the latest in management software, is well-managed, and is well-situated geographically.

Amware’s modern warehouses offer more than 1.5 million square feet of space and boast the latest warehousing management software technology, staffed by experts in diversified product handling. Amware warehouses are strategically located in Cleveland, Ohio, within a day’s drive of 80% of the U.S.

Contact us today for public warehousing and storage availability and pricing.

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