Safe as houses: Investment in innovative technology has supported strong growth

The Warehousing and Storage industry provides its clients with storage facilities for a wide variety of goods. Although a large proportion of this is general merchandise, the industry also offers specialised storage of liquids and gases, agricultural commodities and refrigerated goods. Industry revenue is expected to grow at a strong compound annual rate of 8.3% over the five years through 2018-19 to reach £19.8 billion. Supply chains have become increasingly complex and the industry has adapted to satisfy new consumer demands. Warehouses have developed into distribution centres, where goods can be finished, packed and held in preparation for final delivery. Many facilities also increasingly handle customer returns and waste management through reverse logistics...read more.

Industry Statistics & Market Size
Revenue
£19.8bn
Annual Growth 14-19
8.3%
Forecast Growth 19-24
Profit
Employment
118,779
Businesses
3,207

Industry Threats & Opportunities

  • Industry operators have invested significantly in technology, which has supported growth
  • Technological change has resulted in better cost control and fewer errors
  • The main challenge facing the industry is the shortage of warehouse space
  • Industry Report - Industry Investment Chapter

    The capital intensity of the industry is moderate, with the average business operating with a capital-to-labour ratio of 1:4.69. This indicates that for every £1.00 invested in capital, the average operator spends £4.69 on wages.The industry relies on workers to load and unload trucks and trains, stack pallets, pick stock and track inventory. Over the past decade, the industry has been under intense pressure to modernise, with large workforces giving way to high-tech facilities. An increasing number of facilities are using automated picking and stacking systems, which reduce the need for labour. In ...purchase to read more.

    Additional Insights for the Warehousing & Storage Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Warehousing & Storage Industry are

  • Optimum capacity utilisation
  • Ability to control stock on hand
  • Output is sold under contract - incorporate long-term sales contracts
  • IBISWorld analysts also discuss how external factors such as Downstream demand from manufacturing and Retail sales index in the Warehousing & Storage industry impact industry performance..

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    What's in this report

    What is the Warehousing & Storage Industry?

    This industry consists of businesses that operate storage facilities for all kinds of goods including general merchandise and refrigerated warehouses. The industry also stores goods in foreign trade zones.

    Industry Products
  • Cold storage
  • Liquid and gas storage
  • Grain storage
  • General storage
  • Distribution services
  • Other storage
  • Document storage
  • Industry Activities
  • Storing goods for land transport activities
  • Storing goods for air transport activities
  • Storing goods for water transport activities
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Downstream demand from manufacturing
  • Retail sales index
  • Total online expenditure
  • Value of goods exports
  • Value of goods imports

  • Current Performance
  • Packing demand
  • Streamlined operations
  • Automating activity
  • Chart: Revenue Growth

  • Industry Outlook
  • Online retailing
  • Property developments
  • International operations
  • Table: Warehousing & Storage Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Warehousing & Storage Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Wholesale and Retail Trade
  • Freight Rail Transport
  • Freight Road Transport
  • Sea & Coastal Freight Water Transport
  • Freight Forwarding & Customs Agents

  • Key Selling Industries
  • Commercial Building Construction
  • Freight Road Transport
  • Lifting & Handling Equipment Manufacturing

  • Products & Services
  • Distribution services
  • General storage
  • Document storage
  • Liquid and gas storage
  • Cold storage
  • Other storage
  • Grain storage
  • Chart: Warehousing & Storage Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers and retailers of consumer goods
  • Manufacturers
  • Wholesalers and retailers of food
  • Other markets
  • Chart: Major Market Segmentation for the Warehousing & Storage Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesRent and utilitiesDepreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Warehousing & Storage

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Warehousing & Storage Industry

  • Industry Globalization
    Amazon UK Services Ltd, DHL Supply Chain Ltd,
  • Table: Amazon UK Services Ltd - financial performance
  • Table: DHL Supply Chain Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Warehousing & Storage Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Warehousing & Storage Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Cold Storage
  • Warehousing of goods in temperature-controlled environments. These facilities are generally refrigerated.
  • Fast-Moving Consumer Goods (Fmcg)
  • Goods that are sold relatively quickly at low cost, such as soft drinks and toiletries.
  • Omnichannel Distribution
  • Offering seamless availability of products across multiple different platforms i.e. mobile, online, in-store.
  • Radio-Frequency Identification (Rfid)
  • A method of using tags that are applied to or embedded into a product to store information such as its source, destination and price.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Warehousing & Storage market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Warehousing & Storage:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Warehousing & Storage market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Warehousing & Storage, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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