3 votes

The warehouse shortage in the US

6 comments

  1. [6]
    skybrian
    Link
    [...]

    The big online shopping holiday comes amid a warehouse shortage across the United States as distribution center vacancy rates are at all-time lows. Nearly 96% of existing industrial space is in use, according to commercial real estate services company JLL.

    The U.S. may need an additional 1 billion square feet of new industrial space by 2025 to keep up with demand, JLL estimates.

    “The industry is effectively sold out through the next year,” Chris Caton, managing director of global strategy and analytics at Prologis, told CNBC.

    Rents are at all-time highs and pre-leasing rates have skyrocketed, which is when warehouses are leased before construction is even complete.

    [...]

    This demand is driven by retailers beefing up e-commerce operations amid the online shopping boom, and investing in faster delivery thanks to consumer expectations. Retailers are also securing more storage space in the U.S. to mitigate the impact of future supply chain shocks, like those caused by the coronavirus pandemic.

    Plus, e-commerce and logistics take up three times as much space as brick-and-mortar retail.

    1 vote
    1. [5]
      AugustusFerdinand
      Link Parent
      I think this line needs some more context. Altogether, I think the article goes to show how deep an impact Amazon has made on the whole industry. Even if you don't shop there, their practices have...

      Plus, e-commerce and logistics take up three times as much space as brick-and-mortar retail.

      I think this line needs some more context.


      Altogether, I think the article goes to show how deep an impact Amazon has made on the whole industry. Even if you don't shop there, their practices have made things like 2 day shipping the norm despite the fact that nearly no one actually needs anything they order online that quickly, all the time. If there's something that is an immediate need, then you'll need to buy it in person, locally. If there's something you need/want and it's so non-critical that 2-3 days later is fine, then so is receiving it a week later.

      2 votes
      1. Greg
        Link Parent
        I'm not sure if 2-3 day would have quite the same impact, but guaranteed next day and sometimes same day delivery (perks of living in a smaller, denser country!) has radically changed my physical...

        I'm not sure if 2-3 day would have quite the same impact, but guaranteed next day and sometimes same day delivery (perks of living in a smaller, denser country!) has radically changed my physical shopping habits. Particularly if I'm busy anyway, ordering something in the evening and having it by lunchtime will probably get it to me sooner than I would've otherwise been able to wedge 30-60 minutes into my schedule to go shopping, not to mention being vastly more convenient and generally cheaper.

        4 votes
      2. skybrian
        Link Parent
        Yes, I'm wondering why it takes more space too. You'd think it would be more efficient? While I agree that quick delivery is sometimes unnecessary, it might just be a side effect of items being...

        Yes, I'm wondering why it takes more space too. You'd think it would be more efficient?

        While I agree that quick delivery is sometimes unnecessary, it might just be a side effect of items being stored in a local warehouse for those cases when it is useful. If it's already close by, the main reason to delay shipping is to consolidate shipments, which Amazon does encourage with their "Amazon day" option.

        I don't think it's true in general that the same items are always available locally. It's certainly not true for electronic components, for example, and waiting a week for a part you need is a drag.

        3 votes
      3. [2]
        eladnarra
        Link Parent
        Eh, not always. I have supplements I take regularly, and I recently had to buy my Vit D3 off Amazon because it wasn't available locally and I didn't realize it hadn't been delivered with my normal...

        If there's something that is an immediate need, then you'll need to buy it in person, locally. If there's something you need/want and it's so non-critical that 2-3 days later is fine, then so is receiving it a week later.

        Eh, not always. I have supplements I take regularly, and I recently had to buy my Vit D3 off Amazon because it wasn't available locally and I didn't realize it hadn't been delivered with my normal supplement order until I was out. Waiting 2 days for Amazon was okay, but if I'd had to wait a week I'd have become severely depressed. (Since supplements aren't regulated properly, I can't easily substitute a different brand found locally - the last time I tried that I slowly became more and more depressed until I switched back).

        A pretty unusual case, sure, but there's a reason a lot of disabled and chronically ill people rely on Amazon for certain emergency things, even if we don't want to. (Going to a store often means you need to be able to drive, or risk additional COVID exposure on public transit.)

        2 votes
        1. AugustusFerdinand
          Link Parent
          Hence this part of the sentence directly before the portion quoted. Only a Sith speaks in absolutes.

          despite the fact that nearly no one actually needs anything they order online that quickly, all the time.

          Hence this part of the sentence directly before the portion quoted. Only a Sith speaks in absolutes.

          1 vote