Commercial warehousing revenue in the U.S. will total $50 billion this year, exceeding pre-recession levels, according to a new report by Armstrong & Associates.
Contract and public warehousing revenue will exceed 2008 revenue by 2 percent after declining in 2009, the report said.
Armstrong reported that the contract and public commercial warehousing market now constitutes 45 percent of the total U.S. market.
Contract warehousing has been growing at the expense of public warehousing, the report said. Three-year contracts have become standard for contract warehousing and now cover 48 percent of contract relationships, Armstrong said.
The report said profitability is determined by company cultures and pricing practices, not by whether a company uses a contract or public warehousing model.
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