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Researched by Industrial Info Resources (Sugar Land, Texas)--As COVID-19 restrictions are gradually loosened up across the U.S., retailers--especially those that are based primarily online--are hiring employees and expanding capacity to meet an ongoing surge in home-based orders. Research and Markets recently predicted the global warehousing and storage market will see a compound annual growth rate of 3.4% from 2020 through 2021. Industrial Info is tracking nearly 100 active projects in the U.S. warehousing and distribution sector, worth more than $4.5 billion, that are slated to begin construction in second-quarter 2021. About half of the total investment value (TIV) is attributed to Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington).
Click on the image at right for a graph detailing warehousing and distribution projects that are set to kick off from April through June, by U.S. state.
Amazon and many other online retailers have struggled to keep up with the stratospheric demand in orders amid the COVID-19 pandemic. An analysis by The New York Times found that those who had purchased items online regularly before the pandemic have doubled down on their activity, while those who were staying home to avoid the virus "have been won over by the advantages." Many analysts believe this trend is here to stay; when the pandemic finally abates, consumers likely will stick with whatever kind of shopping is most convenient to them.
This cultural shift has fueled the need for warehousing space across the country, and New York has emerged as the biggest and most lucrative U.S. market, according to the Times. Amazon is preparing to begin construction next quarter on a $50 million "last mile" delivery center in Greece, New York, which is near Rochester. "Last mile" indicates the final leg of the shipping process, when an item moves from a retailer's facility to the customer's doorstep. Amazon also is looking at another last mile delivery center in Brooklyn, in the Red Hook neighborhood. For more information, see Industrial Info's reports on the Greece and Brooklyn projects.
Much of Amazon's recent infrastructure buildout has been geared toward one-day product shipping, which it is trying to expand to as many U.S. consumers as feasible. "We've been doing that throughout the year, and it's been getting better," said Brian Olsavsky, the chief financial officer of Amazon, in a recent quarterly earnings-related conference call. "The issues in 2020 were essentially around capacity and volume, and getting things at the door and being able to then hit a shortened time period. So it wasn't that we were delaying or slowing down the shipment itself, it was the time taken to get through the warehouse and handle backlog of demand."
Clothing retailers also are responding to the growing pressure from online buyers. Urban Outfitters Incorporated (NASDAQ:URBN) (Philadelphia, Pennsylvania) is preparing to begin construction on a $350 million distribution center near Kansas City, Kansas, while The Gap Incorporated (NYSE:GPS) (San Francisco, California) expects to kick off construction on a $110 million distribution center in Longview, Texas, to double its online business. For more information, see Industrial Info's reports on the Urban Outfitters and Gap projects.
"Our new North American facility just outside of Kansas City, Kansas, will take approximately two years to complete Phase I," said Francis Conforti, the chief operating officer of Urban Outfitters, in a recent earnings call. "This facility will support the growth and expansion of our retail segment business in North America by providing more efficient and faster inventory processing, as well as faster and more consistent delivery times to our stores and digital customers."
Real estate investment firms are seeing an advantage in the growth of logistics demand from industries and individual businesses. Stonemont Financial Group (Atlanta, Georgia), which specializes in such development, is developing an estimated $125 million industrial and distribution campus in El Campo, Texas, which is southwest of Houston along the Gulf Coast. The rail-serviced business park will be built near the Kansas City Southern Railway, which stretches from the U.S. Midwest region to areas in southern Mexico. For more information, see Industrial Info's project report.
Vitro Chemicals Fibers (Laredo, Texas), a subsidiary of Vitro (San Pedro Garza García, Mexico), which is the largest glass manufacturer in Mexico, will be Stonemont's first tenant. Stonemont and Vitro say the access to the Kansas City Southern Railway will help companies that do business in both countries avoid cross-border traffic and congestion.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Click on the image at right for a graph detailing warehousing and distribution projects that are set to kick off from April through June, by U.S. state.Amazon and many other online retailers have struggled to keep up with the stratospheric demand in orders amid the COVID-19 pandemic. An analysis by The New York Times found that those who had purchased items online regularly before the pandemic have doubled down on their activity, while those who were staying home to avoid the virus "have been won over by the advantages." Many analysts believe this trend is here to stay; when the pandemic finally abates, consumers likely will stick with whatever kind of shopping is most convenient to them.
This cultural shift has fueled the need for warehousing space across the country, and New York has emerged as the biggest and most lucrative U.S. market, according to the Times. Amazon is preparing to begin construction next quarter on a $50 million "last mile" delivery center in Greece, New York, which is near Rochester. "Last mile" indicates the final leg of the shipping process, when an item moves from a retailer's facility to the customer's doorstep. Amazon also is looking at another last mile delivery center in Brooklyn, in the Red Hook neighborhood. For more information, see Industrial Info's reports on the Greece and Brooklyn projects.
Much of Amazon's recent infrastructure buildout has been geared toward one-day product shipping, which it is trying to expand to as many U.S. consumers as feasible. "We've been doing that throughout the year, and it's been getting better," said Brian Olsavsky, the chief financial officer of Amazon, in a recent quarterly earnings-related conference call. "The issues in 2020 were essentially around capacity and volume, and getting things at the door and being able to then hit a shortened time period. So it wasn't that we were delaying or slowing down the shipment itself, it was the time taken to get through the warehouse and handle backlog of demand."
Clothing retailers also are responding to the growing pressure from online buyers. Urban Outfitters Incorporated (NASDAQ:URBN) (Philadelphia, Pennsylvania) is preparing to begin construction on a $350 million distribution center near Kansas City, Kansas, while The Gap Incorporated (NYSE:GPS) (San Francisco, California) expects to kick off construction on a $110 million distribution center in Longview, Texas, to double its online business. For more information, see Industrial Info's reports on the Urban Outfitters and Gap projects.
"Our new North American facility just outside of Kansas City, Kansas, will take approximately two years to complete Phase I," said Francis Conforti, the chief operating officer of Urban Outfitters, in a recent earnings call. "This facility will support the growth and expansion of our retail segment business in North America by providing more efficient and faster inventory processing, as well as faster and more consistent delivery times to our stores and digital customers."
Real estate investment firms are seeing an advantage in the growth of logistics demand from industries and individual businesses. Stonemont Financial Group (Atlanta, Georgia), which specializes in such development, is developing an estimated $125 million industrial and distribution campus in El Campo, Texas, which is southwest of Houston along the Gulf Coast. The rail-serviced business park will be built near the Kansas City Southern Railway, which stretches from the U.S. Midwest region to areas in southern Mexico. For more information, see Industrial Info's project report.
Vitro Chemicals Fibers (Laredo, Texas), a subsidiary of Vitro (San Pedro Garza García, Mexico), which is the largest glass manufacturer in Mexico, will be Stonemont's first tenant. Stonemont and Vitro say the access to the Kansas City Southern Railway will help companies that do business in both countries avoid cross-border traffic and congestion.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
