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Released May 20, 2024 | SUGAR LAND
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May 17, 2024--Researched by Industrial Info Resources (Sugar Land, Texas)--With the global e-commerce market reaching US$5.8 trillion in 2023 and anticipated to touch US$6.3 trillion this year, the industry is booming. Experiencing a surge during the pandemic, the e-commerce sector mainly requires seamless and effective order management to prosper in a fast-paced world that prioritizes convenience.
Fulfillment centers are facilities that help in order processing and shipping of products directly to the end customer, ensuring easy and accurate deliveries of online goods from retailers to buyers. Owned by a third party, these centers not only help with handling online orders but also in managing seller's inventory.
In contrast to traditional warehouses that are structured for extended storage periods, fulfillment centers run on quick disposal of online orders. Characterized by expansive areas and organized shelving systems, these hubs are strategically situated in proximity to significant consumer clusters and transport networks to facilitate swift deliveries and lower both running and delivery costs. Unlike traditional warehouses that rely mostly on manual labor, fulfillment centers utilize technologies such as order management systems (OMS), warehouse management systems (WMS), automation tools and robotics to carry out the picking, packing and shipping of goods. This not only streamlines the delivery process but also conserves physical space for sellers.
Industrial Info is tracking 24 projects worth more than US$2 billion that are geared toward fulfillment centers in the U.S. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a list of detailed project reports.
The majority of the spending is in North Carolina, Louisiana and Rhode Island, having a cumulative spend of more than US$1 billion. Pennsylvania follows with an investment of US$230 million and Indiana with US$212 million. Other states with substantial investments include Virginia, Hawaii, California and Michigan.
With a combined project investment of more than US$2 billion, Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington), Macy's Incorporated (New York, New York), The Kroger Company (NYSE:KR) (Cincinnati, Ohio) and Walmart Stores Incorporated (Bentonville, Arkansas) (NYSE:WMT) are the dominant players in the market and cumulatively own around 92% of the U.S. market share.
As the leading investor, Macy's Incorporated (NYSE:M) (New York, New York) is constructing a $584 million grassroot fulfillment center in China Grove, North Carolina. Subscribers can click here for the project report.
Amazon, which owns one of the biggest fulfillment centers in the world, is investing more than US$1billion across 13 projects in the U.S.
Grassroot projects make up for 82% of the total spend, while 13% of the investment is inclined toward brownfield projects. With 92% of the investment already under construction and 7% in the planning stages, most of these projects are likely to be completed by June, while the rest will reach fruition by December 2026.
With 22 plants anticipated to come up globally, most of which (18) will set up base in the U.S. between 2024-2025, the future of fulfillment centers is anticipated to remain promising, contributing significantly to supply-chain management.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
Fulfillment centers are facilities that help in order processing and shipping of products directly to the end customer, ensuring easy and accurate deliveries of online goods from retailers to buyers. Owned by a third party, these centers not only help with handling online orders but also in managing seller's inventory.
In contrast to traditional warehouses that are structured for extended storage periods, fulfillment centers run on quick disposal of online orders. Characterized by expansive areas and organized shelving systems, these hubs are strategically situated in proximity to significant consumer clusters and transport networks to facilitate swift deliveries and lower both running and delivery costs. Unlike traditional warehouses that rely mostly on manual labor, fulfillment centers utilize technologies such as order management systems (OMS), warehouse management systems (WMS), automation tools and robotics to carry out the picking, packing and shipping of goods. This not only streamlines the delivery process but also conserves physical space for sellers.
Industrial Info is tracking 24 projects worth more than US$2 billion that are geared toward fulfillment centers in the U.S. Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can click here for a list of detailed project reports.
The majority of the spending is in North Carolina, Louisiana and Rhode Island, having a cumulative spend of more than US$1 billion. Pennsylvania follows with an investment of US$230 million and Indiana with US$212 million. Other states with substantial investments include Virginia, Hawaii, California and Michigan.
With a combined project investment of more than US$2 billion, Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington), Macy's Incorporated (New York, New York), The Kroger Company (NYSE:KR) (Cincinnati, Ohio) and Walmart Stores Incorporated (Bentonville, Arkansas) (NYSE:WMT) are the dominant players in the market and cumulatively own around 92% of the U.S. market share.
As the leading investor, Macy's Incorporated (NYSE:M) (New York, New York) is constructing a $584 million grassroot fulfillment center in China Grove, North Carolina. Subscribers can click here for the project report.
Amazon, which owns one of the biggest fulfillment centers in the world, is investing more than US$1billion across 13 projects in the U.S.
Grassroot projects make up for 82% of the total spend, while 13% of the investment is inclined toward brownfield projects. With 92% of the investment already under construction and 7% in the planning stages, most of these projects are likely to be completed by June, while the rest will reach fruition by December 2026.
With 22 plants anticipated to come up globally, most of which (18) will set up base in the U.S. between 2024-2025, the future of fulfillment centers is anticipated to remain promising, contributing significantly to supply-chain management.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
