Tags: Warehousing

3 Reasons You Should Care about the Warehousing Boom

Written By: Charlotte Freed | Mar 14, 2018


The “I want it now” mentality is changing the way Americans shop, and at the same time changing the way businesses need to store and deliver goods. The e-commerce boom has created the warehousing boom, causing warehousing employment to increase 90% in the last 20 years. And while employment for these jobs is increasing, unemployment is decreasing throughout the country. Here are three reasons why you should care about the warehousing boom.

The Warehousing Boom

It’s Not Stopping

The growth the warehousing industry has seen in recent years is not expected to slow down. Millennials are contributing to this steady growth by fully embracing e-commerce and the “I want it now” mentality. During the 2017 holiday season, e-commerce sales accounted for $143.1 billion, an increase of about 5.3% from 2016. This increase in sales, coupled with the need to deliver products quickly means more warehousing space and locations will be opening in 2018.

Logistics is Changing

The warehousing boom is changing the landscape of logistics. Inventory is important – it’s what brings customers in. But speed, and a painless delivery process, is what keeps customers ordering. Customers expect next day delivery which means distribution centers need to be where the customers are. Distribution centers will continue to pop up in urban centers to meet these demands.

Competition is Ramping Up

Creating a painless delivery process means having enough staff to keep the operation running. With unemployment at a 10 year low, it is becoming harder and harder to fill traditional warehousing jobs. Between 2016 and 2017, warehousing hourly pay rose 6% compared to 2.8% in other industries across the country. This is in part due to competition between employers. This competition will continue as industry giants compete for workers by offering higher and higher wages.

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