Cleveland warehousing & distribution
In recent months, logistics industry watchers have seen demand for warehousing close to major ports surge, driven by the tsunami of e-commerce demand and flood of container imports. That’s made it tougher – and more expensive – to find storage space from New York to Los Angeles. Bloomberg reports these demands are unlikely to abate anytime before next year, at the earliest. The good news is many companies may find solutions in working with Ohio warehousing & distribution firms that are strategically located and connected.
Both logistics service providers and real estate companies were quoted by The Wall Street Journal as saying the fierce competition for warehousing space near port cities has pushed warehouse costs so high that many companies have been compelled to scour neighboring regions (including in the Midwest) to serve shippers’ needs. Northeast Ohio has long been a prime, strategic hub for warehousing and distribution.
The demand for industrial space – inland and around the ports – is likely only to rise in the coming years. Nationally, it’s accelerated the last few years thanks to the rapid rise of e-commerce, which relies more heavily on Ohio warehousing and distribution versus retail space. Storage space rates in some regions have doubled just in the last year. The pandemic exacerbated that trend, and shows no signs of abating.
If your current, in-house Ohio warehousing and distribution practices are already taxing your time and resources, it may be time to take another look at outsourcing with a Cleveland 3PL. “3PL” stands for “third party logistics.” A dedicated 3PL warehousing provider does more than simply give you a place to store your stuff. It offers opportunity for dynamic companies to access a broad range of supply chain & logistics services and expertise.
Cleveland warehousing, distribution and fulfillment centers are grappling with a worsening labor shortage, some struggling to meet rising demands fueled in significant part by e-commerce. Nationally, it’s been a challenge that has businesses looking to launch or expand warehousing operations considering not just large consumer concentrations but an ample supply of qualified workers as well.
CBRE, a commercial real estate and research firm, released recent analysis revealing the need nationally for an additional 226,000 warehouse workers this year and the same in 2019. That’s a 25 percent spike in the five-year annual average. Low unemployment is complicating matters. A smaller labor pool is smaller means higher wages.
Companies shopping Cleveland warehousing options soon learn this is a dynamic but mature market. Often, costs are more manageable when they team with an established Northeast Ohio third-party logistics firm.