Third-party logistics providers occupy 485 million of the estimated 650 million total square feet of U.S. public and contract warehousing, and accounted for $13 billion of the market's $19 billion in revenue last year, according to a new report by Armstrong & Associates.
Armstrong said commercial warehouse operations occupy about 10 percent of total U.S. warehousing space. Total U.S. warehousing costs were estimated by Cass Logistics to be $78 billion in 2001.
"We think there are 600 medium- to large-sized warehousemen in the United States," said Dick Armstrong, president of Armstrong & Associates. Of the top 25 commercial warehouses, we cover 22 in "Who's Who In Logistics."
Armstrong & Associates, which tracks the 3PL market, said all of the top 20 warehouse operators are 3PLs. The largest is Exel, a company with home offices in Britain. Exel has 56.5 million square feet of warehousing space in North America. Exel is followed by APL Logistics, UPS Supply Chain Solutions and Americold, the largest refrigerated and frozen warehouseman.
"Profitability for U.S. warehousemen improved in fiscal year 2002," said Armstrong. "Net profits improved from .7 percent to 1.8 percent of net revenue in 2002. We believe that 3PL pricing has stabilized in this segment and margins should hold or improve this year."
Armstrong's complete report on U.S. warehousing is available in the newly issued 11th Edition of "Who's Who In Logistics? Armstrong's Guide to Global Supply Chain Management."