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Continuing Demand for Warehouse Space to Spur Construction Activity

by Freedonia Industry Studies

March 18, 2021

According to a recent article, demand for warehouse space remains strong, spurred by:

  • continuing consumer interest in e-commerce, which has caused substantial increases in the number of packages mailed across the US
  • high levels of building construction activity, boosting shipments of bulky building materials, such as lumber, roofing, and siding
  • supply chain difficulties that have led to products spending more time in warehouses before they are sent to their final destination

This need for warehouse and distribution will support the construction of new storage facilities, driving demand for such materials as:

  • prefabricated metal buildings and components, such as insulated wall panels
  • prefabricated metal and wood roof and floor trusses
  • concrete for building foundations, floors, and ramps and loading docks
  • large overhead metal doors
  • insulation (for those structures holding refrigerated and frozen items)
  • wood and metal grating flooring (for multi-story storage facilities)
  • wiring, lighting fixtures, and electrical components

Furthermore, as more warehouses and storage facilities are erected, other products will be needed to outfit these buildings, including:

  • pallets
  • metal racking and supports
  • conveyor belts and other package retrieval system components
  • materials handling equipment, such as forklifts

For more information and discussion of opportunities, see The Freedonia Group’s extensive collection of off-the-shelf research, particularly in the Construction and Building Products. Freedonia also offers an expanding catalog of COVID-19 Economic Impact reports, which highlight how various industries are responding to the current crisis with a comparison to recent recessions. Freedonia Custom Research is also available for questions requiring tailored market intelligence.

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