Industry Analysis & Industry Trends
Revenue for the Storage and Warehousing industry is expected to total $19.1 billion in 2013, up 8.5% from 2012. In the five years through 2013, the industry has been growing at an annualized rate of 7.4%.
Industry demand has been strong since China's entrance to the World Trade Organization (WTO) in 2001. Foreign logistics resources and industry expertise streamed into the Chinese market, which improved service quality and accessibility, and increased demand for warehousing services. The financial crisis that started in late 2008 resulted in lower output and demand from downstream industries in 2009, leading to weaker demand for services from this industry. With the recovery in the Chinese and global economies, the industry rebounded strongly in the following years.... purchase to read more
Industry Report - Industry Investment Chapter
For every dollar spent on labor in this industry, about 83 cents are invested in capital. Land, buildings and equipment utilized in this industry can be rented or purchased. Heavy equipment and freight vehicles increase capital costs, while repair and maintenance inputs increase labor costs.
Research and development activities are not absolutely necessary in this industry. However, some large players invest in the development of logistics management systems while mid-tier companies purchase warehouse management tools. The industry's enterprises also invest in other capital items, such as land, buildings and equipment.
Labor costs in China are generally low, but account for a large proportion of this industry's revenue... purchase to read more