2023 State of the Third-Party Logistics Industry

As we near the three-year anniversary since the pandemic changed everything, the warehousing and third-party logistics (3PL) community continued to face disruptions related to COVID-19 throughout last year—with experts predicting systems won’t normalize until 2023. With 2023 ramping up, new challenges are arising: lack of warehouse space, consolidation within the industry, the ongoing labor crisis, and an uncertain economic climate to boot.

According to the 2022 Warehouse/Distribution Center Equipment Survey from Logistics Management, “when asked about current activity/capacity level for standalone DCs, a combined 31% have a capacity level that exceeds 80%” with average capacity reaching 78% for warehouses reporting over 50% capacity. This capacity crunch signals that warehouses may struggle to add new customers or meet peak demand surges. Finding additional warehouse space is a top priority for many warehouses, especially those serving ecommerce customers.

What is your current activity level for standalone warehouse/distribution centers?