Locked In: Public Storage and Warehousing in the US Industry Market Research Report from IBISWorld has Been Updated

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Growth for the Public Storage and Warehousing industry has been supported by strong manufacturing, wholesaling and retail trade. For this reasons, industry research firm IBISWorld has updated a report on the Public Storage and Warehousing industry in its growing industry report collection.

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Slower stock turnover softened the declines incurred by downstream activity

Growth for the Public Storage and Warehousing industry has been supported by demand from manufacturing, wholesaling and retail trade. Increased international trade and outsourcing to third-party warehouses have supported growth, but the industry has come under pressure from integrated logistics networks. For example, major competitors have operations in related transportation industries that allow them to provide door-to-door transport and distribution services in addition to warehousing services. “Furthermore, the recession caused manufacturing, wholesaling and retail activity to contract, decreasing industry revenue in 2009,” says IBISWorld industry analyst Lauren Setar. “In turn, inventories arriving at warehouses declined sharply, thus pulling industry revenue lower.” Slower stock turnover, however, has softened the decline. From 2007 to 2012, industry revenue has increased at an average rate of 0.2% annually to total $14.7 billion. In 2012, industry revenue is expected to grow 1.0% as wholesalers and retailers rebuild inventories and the economy continues to recover from the recession.

Public Storage and Warehousing industry costs have increased since 2007, especially for large operators. According to Setar, “Costs grew as the industry moved into larger, more complex warehouses with electronic monitoring and tracking systems.” The decline in revenue in 2009 slowed growth, but warehouses will continue to develop more advanced tracking and picking systems through the next five years. Despite falling revenue, establishment numbers and employment have remained relatively steady over the past five years. Even as the US economy began to stabilize, many operators filed for bankruptcy under the weight of debt built up in 2009. Over the five years to 2012, the number of industry enterprises is expected to remain relatively flat.

Over the five years to 2017, revenue is forecast to increase steadily, supported by a stronger economy, increased retail stock turnover, higher manufacturing levels and greater outsourcing. As industry revenue climbs, the number of industry establishments and employment levels are also forecast to improve. And to stay competitive, industry operators will look to be a part of or have alliances with integrated network providers. This involvement is likely to increase the need for electronic tracking systems and the complexity and expense of these systems. Also, more industry operators will offer additional allied services. For more information, visit IBISWorld’s Public Storage and Warehousing in the US industry report page.

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IBISWorld industry Report Key Topics

Industry firms provide storage warehousing and storage services to the manufacturing, wholesale and the retail sectors. Operators generally use equipment such as forklifts, pallets and racks to handle goods in containers such as boxes, barrels and drums. Industry firms avoid specializing in handling bulk products of any particular type, size or quantity. Companies that rent or lease space for self-storage for consumers are included in IBISWorld report 53113.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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