G4 Logistics News

As of this point in 2022, there are over 20,000 private warehouses in the US according to the Bureau of Labor Statistics. The average annual growth in the number of warehouses in the US has been 3.2% per year over the last 5 years. This means the US has added over 3,000 warehouses in that period. Over the same 5-year period, e-commerce growth has significantly outpaced warehouse growth with an average annual growth rate of 16.5%. Today, only 14.5% of sales are made via e-commerce so that leaves a solid runway for continued warehouse demand. Normalizing for tangible goods vs virtual goods, it appears warehousing construction will continue to grow year over year.   

A year into using a 4-day workweek schedule we have learned a lot...and it is worth it.  The discussions leading up to January 1st, 2022, were around making a 4-day work week a company benefit. In a high-touch service and operations organization, we understand customer service and response time can't slip. Our operating KPIs were set.  If we were not able to at least maintain performance, we would have to roll back to the 5-day schedule. 

The US - Mexico border is open for business. With the transition from NAFTA to the USMCA (United States-Mexico-Canada-Agreement) in 2018, cross-border commerce, and logistics activities were improved and reinsured for years to come. The main points of the agreement center around IP protection, digital trade, tax thresholds, labor, and environmental obligations. With the structure for trade here in North America reinvigorated and the global political environment less stable, businesses are shortening their supply chains and choosing Mexico for manufacturing.  

Mexico is capitalizing on the macroeconomic factors that are demanding companies look beyond Asia-Pacific for manufacturing. Through careful planning and partnerships, Mexico has created advantages in labor, education, and legal protections that will continue to build its reputation as a leading source of skilled manufacturing.