From Modern Materials Handling:
Top 20 warehouses 2019
As the heavy hitters continue steady growth, robotics, automation and artificial intelligence are helping propel smaller players upward.
Editors’ Note: This story has been updated to reflect Lineage Logistics’ acquisition of Preferred Freezer Services and Americold’s acquisition of Cloverleaf Cold Storage. Since publication, IARW has updated its numbers and the cold storage chart has been updated accordingly.
The North American market for value-added warehousing enjoyed an unusually robust year in 2018 after growing 8% to $43.3 billion, a growth rate spike not seen in nearly a decade. These are among the findings of 3PL consultancy and market research firm Armstrong & Associates, which compiles a list of the top North American warehousing companies. Each company has either provided square footage information or enough public information for Armstrong & Associates to make a reasonable estimate.
Typically, the market’s cumulative annual growth rate is in the ballpark of 2.5% to 3%, according to Dick Armstrong, chair of Armstrong & Associates, who anticipates a return to normalcy in 2020.
“We look for a decent year for value-added warehousing in 2020, even though any sector you look at is backing off, whether it’s intermodal, trucking, or the fact that there’s quite a bit of capacity available for the spot market,” Armstrong says. “It’s still going to be a good year, just not a great year.”
Armstrong doesn’t expect a lot of consolidation in the near future, aside from large companies acquiring smaller niche players that are easy to add on. For now, the biggest question mark is the economy.
The Top 10
Continuing a tradition dating back to its days as Exel, DHL remains the No. 1 position as the largest 3PL warehouser in North America.
In second place is XPO, which Armstrong says has “grown to the point where they’re really a significant player,” primarily through purchases. By contrast, third-place Ryder’s growth is the result of a significant amount of organic growth.
“Ryder is now at a point where 36% of their business is automotive, down from 60% back in 2010,” Armstrong says. “Now, 36% of their business is retail and consumer goods, so they’ve really shifted their emphasis dramatically. It hasn’t made much difference on profitability, because they are profitable and continue to grow.”
Top 20 North American warehousing 3PLs |
||||||||
2019 Rank
|
2018 Rank
|
Third-party logistics provider (3PL)
|
Headquarters
|
Warehouse square feet, 2019 (millions)*
|
Warehouse square feet, 2018 (millions)*
|
Percent change
|
Number of
warehouses (2019) |
Number of warehouses (2018)
|
1
|
1
|
Westerville, Ohio
|
121.0
|
119.0
|
1.7%
|
430
|
417
|
|
2
|
2
|
Greenwich, Conn.
|
90.0
|
83.7
|
7.5%
|
400
|
400
|
|
3
|
3
|
Miami, Fla.
|
54.4
|
50.0
|
8.8%
|
304
|
207
|
|
4
|
4
|
Brentwood, Tenn.
|
50.0
|
42.9
|
16.6%
|
176
|
168
|
|
5
|
5
|
Cherry Hill, N.J.
|
49.6
|
41.5
|
19.5%
|
134
|
130
|
|
6
|
6
|
Atlanta, Ga.
|
37.0
|
37.0
|
0%
|
140
|
142
|
|
7
|
7
|
Cranberry Township, Pa.
|
35.4
|
35.4
|
0%
|
127
|
127
|
|
8
|
8
|
Novi, Mich.
|
31.0
|
26.0
|
11.5%
|
192
|
114
|
|
9
|
9
|
Chattanooga, Tenn.
|
26.0
|
25.0
|
4.0%
|
90
|
80
|
|
10
|
12
|
Reading, Pa.
|
24.9
|
21.4
|
16.4%
|
79
|
87
| |
....MUCH MORE
See also June 10's "Warehouse space crunch will tighten as 'lean' supply chains fatten up"
One of our favorite commercial/industrial real estate exposures, along with its cousin, cold storage....
