Each month, physical retailing continues to lose ground to online purchasing. With the dramatic growth of eCommerce, Texas and the US and world at large are seeing major proliferation of the warehousing sector. Demand for warehousing has reached record highs in recent years. As demand for storage space rises, so has the need for warehouse staff and logistics solutions. Statistics presently indicate that contractors are meeting at least 81% of the staffing needs of warehouses.
Meanwhile, retail jobs continue to plummet. Depending on how you view it, that is not entirely a bad thing. The mere fact that the warehousing sector is growing both in appeal and remuneration present an opportunity for those who previously would have sought retail jobs, and reflects the far-reaching effects e-commerce is having on the market.
Contractors are meeting at least 81% of the staffing needs of warehouses.
To keep abreast with the ever-rising demand for storage services, warehouses companies need a well-trained and capable workforce. Outsourcing warehouse staff is a relatively new trend that is certainly catching on. A recent study has found out that shopping hours are steadily declining, reflecting the creation of new employment opportunities in the warehousing sector thanks to e-commerce.
Automation is top-of-mind for those who watch the warehouse space. The reality is that robots will take longer to replace the human workforce than most people think. With the prevalent and growing problem of shortage in supply chain talent, more and more warehousing companies opt to outsource staffing to managed warehouse labor providers.
Warehouse Real Estate
The growth of e-commerce has in the recent past driven a steep demand for storage space. The growth of the warehouse sector in Houston represents a market of interest. For quite some time, Dallas has traditionally been home to the most massive warehouses anywhere– that may be changing. Major brands including DHL, Amazon, and Walmart among others have expressed interest in setting up shop in the Houston area. Houston is becoming the distribution hub of the State of Texas. As of November 2016, 96% of the total square footage under construction was warehouse space. Of the overall increase in about 5 million square feet in industrial space, a large percentage went to warehousing.
Thiss reality brings into greater focus how fast the sector is growing. More and more warehouses have emerged around Houston thanks to the expansion opportunities e-commerce has brought along with it. E-commerce companies require three times greater warehousing facility space compared to run of the mill retailers. This presents a huge window of opportunity for warehouse investors and contractors. The contractors, as always, step up to the plate and deliver on their mandate, enabling the unprecedented growth of the warehouse industry.
Logistics and Staffing
With a reliable logistics solutions provider, a warehouse can keep the supply chain functioning as efficiently as possible. In order to achieve the sensitive need to deliver products on time, warehouses partner with networks of small independent delivery contractors. Logistics contractors have been instrumental in the growth of the warehouse industry and e-commerce as well. Warehouse companies and e-commerce in particular benefit from the need to speed up deliveries.
In summary, the warehouse sector continues to express signs of robust growth thanks to the proliferation of e-commerce. Such is the power and allure of e-commerce that, more and more retailers are now steadily shifting operations to online platforms. The growth of the warehouse sector cannot be pinned down to a single factor. Instead, a combination of aspects which include independent contractors supplying different services that support the overall growth of e-commerce.