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Continuing Demand for Warehouse Space to Boost Construction & Other Industries

by Freedonia Industry Studies

January 14, 2021

One undeniable fact about the COVID-19 pandemic has been its effect on the US shopper. Consumers leery of entering stores have embraced online shopping, purchasing everything from groceries to exercise equipment from the safety and comfort of their homes. However, this increase in shipping activity has highlighted a new problem: a lack of sufficient warehouse space to store of all these goods awaiting delivery.

This shortage of warehouse space – and the accompanying rise in rents for these spaces – has spurred construction of new facilities to meet the need for additional storage and distribution centers. Given that many consumers will continue to use online purchasing for a portion of their shopping needs even after the COVID-19 pandemic ends, demand for warehouse space will continue to grow.

This will provide growth opportunities for the construction industry, particularly suppliers of:

  • metal wall and roof panels
  • prefabricated roof trusses, floor joists, and other supports
  • insulation (especially needed for climate-controlled facilities used for refrigerated and frozen goods)
  • concrete used for flooring, ramps and loading docks, and similar facilities
  • overhead doors
  • metal tubing used for pallet racks and other building components
  • HVAC systems

Other industries can also expect to see sales gains as warehouse construction continues to climb, key among them:

  • new and refurbished pallets
  • forklifts and other material handling equipment
  • conveyor belts
  • light and medium trucks

For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, including those covering the Construction industry, such as Commercial Roofing, Low-Slope Roofing, Global Insulation, Global Cement & Concrete Additives, Global Windows & Doors, and HVAC Equipment.  Other related reports include Global Material Handling Equipment and Global Pallets. Freedonia Custom Research is also available for questions requiring tailored market intelligence.

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