2012-05-24

Economic Improvement Raises Concerns About Warehousing Shortage

Tulsa, OK, May 24, 2012 - In a recent study on the economy and available
warehouse space, Conexus, a third-party logistics company serving the United
States, Canada and Mexico, found that Gross Domestic Product (GDP) in the
United States increased by 2.2 percent in the first quarter of 2012
according to Trading Economics
. This is good
news for retailers and manufacturing companies across the nation as a
positive growth rate reflects an increase in consumption and overall demand.
Unfortunately, as exciting as rising sales can be, companies may become
faced with a different problem - lack of warehouse space to store their
inventory.

According to the U.S. Bureau of Labor Statistics
the
number of private warehousing and storage establishments has decreased and
slowed over the past several years so that the current number hovers barely
above 2008 levels. Historically, the industry gained an average of 409
private warehousing establishments a year from 2002-2008, which means that
our relatively flat growth rate over the last four years could mean we are
headed for a major shortage of warehousing space - even more so as the
economy rebounds.

"Conditions are clearly improving, and the fundamentals look good," wrote
Robert J. Bowman of SupplyChainBrain in his article titled "Warehouses Aren
size2warehouses-arent-making-room-for-the-recoveryfont/> 't Making Room for
the Recovery." "But the warehouse market has yet to respond. Distribution
operations are going to feel increasing pressure to boost storage space as
supply and demand grow further out of balance." Bowman sites Walt Rakowich,
co-chief executive officer of Proligis with stating that "the absorption of
warehouse space - actual demand - is beginning to accelerate" and that the
"average utilization levels have risen from 82.5 percent to 84.5 percent in
the past two years."

This is news to celebrate as we watch companies continue the long climb back
to profitability since the peak of the recession in 2009. However, now is a
critical time for businesses to reevaluate their warehousing and inventory
needs and make sure to lock in the space necessary to support their
continued growth.

For assistance with your current and future warehousing needs, contact the
Conexus warehouse and distribution facility in Laredo, Texas by calling
956-284-2901.

For additional information contact: Aubrey Blankenship, at 918.200.0175 or blankenship@conexuslogistics.com.



Conexus, LLC, formerly Melton Logistics, LLC, is a non-asset based
third-party logistics company serving the United States, Mexico and Canada.
The company offers truckload, less-than-truckload (LTL), temperature
controlled, flatbed, over-dimensional, intermodal, expedited ground and air
and specialized freight services as well as warehousing, inventory and
distribution through its 30,000 square foot warehouse in Laredo, Texas. The
company has been in business since 2003.

www.conexuslogistics.com