RALEIGH, North Carolina, Sept. 17, 2019 /PRNewswire/ -- The global market for warehousing is currently growing at a CAGR of 6 - 8 percent, according to Beroe Inc, a procurement intelligence firm. The increasing service levels such as e-commerce and same-day delivery are influencing retailers to invest further in the warehouse industry.
Regions such as Europe, North America, and some parts of APAC (Australia and Singapore) have high market maturity due to steady supply conditions and tremendous technology adoption. India and China are expected to be the projected growth driving markets for the warehousing industry mainly due to the anticipated increase in manufacturing facilities and the growth in the e-commerce sector.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
The growth of retail and FMCG goods has been the main driver for the industrial warehouse industry. The maturity of the e-commerce industry has led to an increase in demand for warehouse space from 3PLs across the globe and the demand will expand at a faster pace in emerging economies such as India and China. Another growth driver for the warehousing industry is the increase in disposable income, which is increasing at 2.3 percent among the general public. This has created a demand for consumer goods along with increased imports and exports.
A growing economy with strong manufacturing sectors such as the U.S., manufacturing PMI (purchasing managers' index) is projected to trend around 53.00 in 2020, which contributes to the increasing demand for warehouse space. Moreover, the availability of skilled labor and nominal wage rates compared to developed regions with strategically located hubs such as Dubai and Jeddah gives MEA a higher potential for warehouse space.
The research methodology adopted for the report included:
In emerging markets such as LATAM, some parts of APAC, and MEA factors such as availability of warehouse space, lower rents & competition, and warehouse service providers willing to reduce rates are increasing the buyer power. However, in developed markets, the vacancy rates in countries such as the U.S. is at a 15-year low of 6 percent. Due to this, there are tight supply conditions prevailing in the market, which diminishes buyer power.
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com