The New Jersey/New York corridor shows the evidence of this boom in warehouse space and infrastructure development in response to the “Amazon Effect”. Industrial vacancies have been driven to an all-time low, the Newark airport and port are rapidly expanding, and highway expansion and widening projects are improving access to these areas. Large markets like Los Angeles, Chicago, Atlanta and Houston are seeing similar growth, and even smaller markets like Charleston are having to expand to meet demand.
The boom has also had a domino effect on the economy in these areas, causing third party logistics suppliers like UPS and FedEx to multiply and see a significant increase in business. Smaller retailers are able to outsource their logistics and fulfillment to centers like these, which eliminates the need to have their own warehouses, decreases the delivery time to their customers and levels the playing field with larger competitors.
New technology and products to further improve the supply chain are on the horizon. Uber for Freight, self-driving cars, renewable energy, automated warehouses and drone deliveries are just a few of the innovations that could shake up the logistical landscape in the future.
Menard USA is excited to support each piece of the supply chain from stabilizing runways at major airports and railways along train routes, to strengthening the ground under highways and warehouses, and we welcome the challenges new innovation in logistics brings.