Armstrong & Associates conducts warehouse survey

By Freddie Pierce
In the second half of 2011, Armstrong & Associates collected information on contracting warehousing companies whose total revenues exceed $13 billi...

In the second half of 2011, Armstrong & Associates collected information on contracting warehousing companies whose total revenues exceed $13 billion. The average revenue for the sample companies was $823 million.

Revenues ranged from $36 million to $3 billion. Companies reported organic increases from 1 to 25 percent for the first half of 2011 when compared to the first half of 2010.

In addition to a survey form, participants completed a series of spreadsheets providing detailed information on contract warehouses, contract customers and public warehouses. Information covered over 600 contract warehouses, 300 contract customers and 100 public warehouses.

Commodities handled were split into 13 vertical industries. The largest was Retail & Consumer Products at 18.4 percent. High-tech/Computers accounted for 16.1 percent, while Beverages & Food was 16.0 percent.

Building Materials came in at 1.7% reflecting the slowness of home construction activity in the United States.

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Modern value-added warehousing and distribution (VAWD) third-party logistics providers (3PLs) all have significant transportation management capabilities. The participants commonly have network transportation management and dedicated contract carriage (DCC) trucking operations.

Three-fourths of the respondents have asset trucking operations including DCC. All have network transportation management capabilities with over half having control centers operating with major transportation management systems (TMS) platforms. Participants use 74 percent of their total warehouse space for contract warehousing and 26% for public warehousing.

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