Input Stories

Input Stories

Warehouse Demand Is Down

Demand for warehouses is contracting, according to The Wall Street Journal (subscription).

What’s going on: “A once-booming U.S. warehousing market is coping with signs of contraction as businesses consolidate warehouses and in some cases upgrade existing sites rather than add facilities.”

  • Sellers have finally cleared pandemic-era overstock and are now “aligning their supply chains for more normal, prepandemic stocking and consumer spending patterns.”
  • Some companies are closing warehouses, while others are subleasing space they’ve rented.

Why it’s important: “[C]ompanies are retooling their supply chains to match projections for more moderate growth in consumer spending.”

  • They’re also changing fulfillment processes—including more use of technology, such as automation—to better and more quickly serve customers.
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