OVERALL NET ABSORPTION VS WAREHOUSING/STORAGE EMPLOYMENT
- As the national industrial market trends up or down, warehousing/storage employment generally follows suit. This has been evident in the last 10+ years: as the absorption of industrial space (specifically W/D space) mounted, the need for warehousing/storage workers increased.
- When the recession hit in late 2007, more than 131 msf of industrial product was shed across the country from 2008-2009 due in large part to decreased retail sales. Consequently, warehousing/ storage employment plummeted by 8.7%. Conversely, since the national industrial market began gaining traction in 2010, we’ve seen an annual average of 71 msf of industrial absorption which correlated into an additional 72,600 jobs (+11.2%).
- The E-commerce and 3PL industries are expected to continue to grow in the U.S. in the coming years and the need for W/D product is anticipated to follow suit. With the national economy projected to improve at a more brisk rate in the next few years, we foresee increased warehousing/storage employment as vacancy rates in major U.S. industrial markets steadily decline.