by Robert Victor Robert Victor
Reading Time: 2 minutes

You think you have a problem storing all your stuff? Think again. Warehouses in the U.S. are running out of space and combined with a shortage of workers and truck drivers, the system is getting overwhelmed.

Warehouses have in essence become America’s garage. As a society, our need for instant gratification and shopping sprees has us scrambling for space. If warehouses were motels for stuff, they’d have a “No Vacancy” flashing in big bright neon lights right about now with over 95% claimed in most markets. What are the causes for this shortage of available warehouse space? Three big reasons: the effects of the global pandemic, the change in consumer shopping behavior and the lack of an available workforce.

Prior to COVID, our country’s warehouses were already extremely busy supporting the growing online and legacy offline shopping needs of millions of Americans. Then COVID struck and the supply chain issues began. Box stores paused or ceased operations, available workers were displaced with many not returning to the workforce, items started piling up and ports began to be congested. When the economy reopened, the flood of goods arrived with no end in sight – with a shortage of warehouse space and the lack of workers exacerbating a supply chain industry already being stretched too thin. Manufacturers who store their products in America’s warehouses experienced the impact of one basic law of economics – supply and demand – on their rent expense: shortage of warehouse space equals increased rent costs. Given all these marketplace constraints, it would be an understatement to say that inventory management is very important – especially as warehouse rents have doubled in some areas.

Hollingsworth has been proactive in keeping in front of the curve. We have increased our three core fulfillment sites in Columbus, Ohio, Dallas, Texas, and the Tracy/Lathrop area in northern California by 300%. In addition, we have opened a 300,000 Sq. Ft. new sequencing/assembly in Warren, Michigan and a 400,000 sq. ft. contract packaging facility in Brownstown, Michigan and are reviewing strategic growth locations for 2022. Our customer base has increased with the addition of major Fortune 500 corporations and Hollingsworth has available space in 2022 to suit your supply chain requirements.

We are ready for growth!  Stay ahead of the curve, regardless of what events the rest of the world has in store. Contact Hollingsworth and we will show you how we can help keep you leading and not following with your inventory management.

Author: Scott Motherwell – Director, Sales

Email: smotherwell@hollingsworthllc.comIKEA warehouse aisle

Subscribe to our Newsletter

Sign up for our email newsletter to get the latest news and updates from Hollingsworth.