The Rise of eCommerce Takes Warehousing and Distribution to New Heights

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Shifts in consumer culture are having a real impact on warehousing and distribution operations. These shifts, mostly related to the market’s newfound appetite for “next-day-delivery” offered by eCommerce business models, have infiltrated the industry and it’s never going to be the same. NKF Consultants Brad Lindquist (Senior Managing Director), Chris Volney (Managing Director), and Gregg Wassmansdorf (Senior Managing Director) collaborate in a recent Expansion Solutions article examining the real estate and market trends impacting warehousing and distribution. They provide insights into operational trends like increased labor competition and a leased workforce as well as sharing four location strategy best practices your organization can’t afford to overlook.

According to the article, a “… highly disruptive segment, focused on eCommerce and customer fulfillment needs, is driving huge change into the market”. For this segment, warehousing and distribution hubs around the U.S. “… are getting bigger, staff requirements are going up, and the need to be close to either major populations centers or an air cargo hub are critical”. This favors a real estate approach that utilizes proximity to urban centers in order to meet increased demand.
 
This comes as good news for an industry which initially lagged following the last recession. Today, the warehousing and distribution industry has officially bounced back. “As of Q2 2017, NKF was tracking 52 mega projects in the U.S.A. Mega projects are defined as an individual industrial building of 1,000,000 square feet or greater.”
 
Read the full article titled Warehousing and Distribution, Moving to New Heights.
 
Read an ad-free PDF of the article.

Read the NKF white paper titled Renaissance of the Warehouse/Distribution Market; Retailing's Transformational Impact.

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