Why Warehouses Are Taking Over The U.S.
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- Опубликовано: 28 ноя 2021
- The U.S. is facing a warehouse shortage, with 1 billion square feet of new industrial space needed by 2025 to keep up with demand, according to commercial real estate services company JLL. More e-commerce activity and faster delivery is driving up demand and shifting local economies, like in the Lehigh Valley region of Pennsylvania. Now, open land is scarce, forcing real estate developers to find unconventional spots, like a scuba diving center, if they want to keep building.
For every Cyber Monday purchase, there is a warehouse employee packing up those soon-to-be presents.
The big online shopping holiday comes amid a warehouse shortage across the United States as distribution center vacancy rates are at all-time lows. Nearly 96% of existing industrial space is in use, according to commercial real estate services company JLL.
The U.S. may need an additional 1 billion square feet of new industrial space by 2025 to keep up with demand, JLL estimates.
“The industry is effectively sold out through the next year,” Chris Caton, managing director of global strategy and analytics at Prologis, told CNBC.
Rents are at all-time highs and pre-leasing rates have skyrocketed, which is when warehouses are leased before construction is even complete.
“The leasing volume is almost triple in some cases to what’s being built every year,” Mehtab Randhawa, senior director of industrial research for the Americas at JLL, told CNBC.
For example, another nearly 190 million square feet of warehousing space was under construction in North America during 2020, and more than 43% of the buildings were pre-leased, according to CBRE.
This demand is driven by retailers beefing up e-commerce operations amid the online shopping boom, and investing in faster delivery thanks to consumer expectations. Retailers are also securing more storage space in the U.S. to mitigate the impact of future supply chain shocks, like those caused by the coronavirus pandemic.
Plus, e-commerce and logistics take up three times as much space as brick-and-mortar retail.
The expansion of warehousing has shifted local economies, like in the Lehigh Valley of Pennsylvania.
The rapid growth has created controversy over land use because the warehouse boom is tightening the supply of land.
“Our folks ... are very upset about the warehouses, and they’re very upset about the truck traffic that it’s creating,” Northampton County Executive Lamont McClure told CNBC.
That’s pushing industrial developers to get creative and find more unconventional spots, like a Lehigh Valley aqua park and scuba diving center if they want to keep building.
Lehigh Valley native Stuart Schooley told CNBC that he and some friends tried to stop the construction of the first warehouse on their street.
“We realized we couldn’t stop it ... [and it] just started a progression of one warehouse after the other. We were the last property,” Schooley, owner of Dutch Springs, a diving center and aqua park in the Lehigh Valley, told CNBC.
Now, Schooley is selling the land so he and his wife Jane can retire.
Real estate developer Trammell Crow is purchasing the property and looking to build two warehouses on the land.
“We used to be quite welcome, and the worm has definitely turned, especially in places like the Lehigh Valley, where I think people feel like when is enough, enough?” Andrew Mele, managing director in Trammell Crow’s Northeast metro division, told CNBC.
So, what do all these warehouses mean for American consumers and business people from Wall Street to Main Street?
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Why Warehouses Are Taking Over The U.S.
America went from being a coast to coast shopping mall, to a coast to coast warehouse.
Honestly - that’d be a great use of all the closing malls no?
Much of it from China!
@@Ctasker5 The architecture doesn't really work.
@@user-do5zk6jh1k You’re right - I can see that being a problem. I was just thinking in the terms of massive space they occupy.
@@Ctasker5 For sure. Especially with those massive parking lots they have, you can build a more on those plots of land.
The sad part will be when these warehouse become 90% automated and all the people in those town are left with nothing
There are already a lot of warehouses transformed into automotive warehouse in PA. 5 people can totally run a warehouse like that.
They can sell their land to the Warehouses. LOL
The tax breaks that are given to industrial facilities now are contingent on job creation. If people aren't employed by the warehouse, then they will be taxed to fund government benefits. Any public official who doesn't see to this is incompetent.
@@ideologybot4592 they can only hire per diem or part timer. That is still count as creating jobs . The big dogs always have tons of ways to avoid tax if they want to. They have the whole CPA team to back them up.
@@heydennisha hey, believe who you want to believe and blame who you want to blame, man. I don't care enough to argue about it.
Instead of paving over farmland, they should buy old factories and tear them down then rebuild. Most of these warehouses will be abandoned in 50 years.
No kidding. Look how much room would be available in places like Detroit.
Like in the rust belt.
logistics. too far away. this land is in a huge population zone didn't you pay attention during the video?
Just like when a big box store decides to move locations a few miles because it's cheaper to build a bigger more appealing site and leave the eye sore to pollute a community while going unused.
@@MMay2099 eyesore? like old people can really see good anyways. ha. you make me laugh. if Matrix was here he'd laugh too.
I temped at a warehouse (twice) in the 2000's. Low pay, mandatory overtime, no climate control during the summer, dirty and dusty, poor safety protocols, a**hole management, clocked every minute, on your feet all day, physically demanding. Just as we're warehousing products, we're warehousing people. The future of non-college educated work is depressing, though I suppose it always was.
Yeah no AC would definitely be a deal breaker.
Truth is there are probably a lot of college grads working jobs like this.
i work at a warehouse and there's almost never mandatory overtime. outside of coming in an extra day during the peak season
Create content. No college degree required
Automation will be the solution
I can't speak for others, but as a former truck driver of 28 years, I was extremely glad to see all the new warehouses being built, because the aged ones were/are a pain in the butt to get into, old docks, no where to park, etc!!!!!
Nonono! You're supposed to hate warehouses and embrace the new siege and soon-to-be famine that these MSM and billionaires are waging on America! -50 Social Credits
I used to love backing a 53ft trailer into the Kroger warehouses with INSIDE the building docks, that was built for 48ft w/a cab over
I peddle and still a lot of awful docks in the north east
@@manictiger You are a wise man Mr. manictiger. 👌
@@improvisedsurvival5967 Out West they have been getting better and better!!! :)
What this video didn't address is that the Lehigh Valley and Northern Berks County have some of the best farmland in the country, if not the world (I know, Lancaster County, that's a bold statement right there...). Pennsylvania German settlers really knew how to spot great soils. Once that's paved over, it's gone and the breadbasket of the Eastern US is no more.
That's the most heartbreaking thing to see as I travel through that area. It's awful that farming can't ever compete with short-sighted development.
What makes you think that there isn’t enough land for farms and warehouses
@likexbread what do you mean?
@likexbread I have not, but I'm assuming that you're adding it to the list of places with some of the best soils in the country. If so, thank you! :-)
@@TKUA11 I live in the Lehigh valley. It’s not the fact that there isn’t enough space. More so where they choose to build their warehouse. Makes thing very inconvenient for Lehigh valley residents. PA roads are known to be terrible and living here it seem like every few weeks a new industrial complex gets built in or around residential areas. Making the roads worse, traffic worse and taking away a lot of the natural beauty we are used to seeing and enjoying. I don’t think people would be as upset if warehouse divided to build a little further away from residential areas.
Repent to Jesus Christ!
“Cast all your anxiety on him because he cares for you.”
1 Peter 5:7 NIV
J
I just joined a "buy nothing" group. So tired of consumerism.
Reason: a company called Amazon. They need warehouse space on an unprecedented scale, and are grabbing warehouse space as fast as possible. No wonder we're seeing major warehouse construction near railroad yards and even near airports.
Because of imports! Logistics is crap jobs compared to manufacturing.
@@TheBooban Manufacturing has been long gone for a long time now. Not coming back. Amazon actually pays low skilled workers very well. $18.00 is common plus benefits. Much better than the average the retail job.
@@johniii8147 You can't say it's not coming back. It's due to politics. Factories move from country to country all the time depending on costs. Put the tariffs up to make it more costly to import like before WTO, and they will come back.
@@TheBooban Yes i can pretty confidently say it's not coming back back in any large scale. I'm a realist. Manufacturing that is done here is not the the high paying gig it use to be decades ago. No unions, no pensions, paying $15.00-$20.00 and hour with high healthcare costs.
@@johniii8147 18 usd a hour is crap, min wage in California is 15 hour. sounds a slave worker.
I have mixed feelings. These warehouses that have been taking over the farmland in southcentral PA, where I live. Yeah its disgusting a gray, yet at the same time, these warehouses have brought so many good jobs, and I myself am currently benefiting from this. I work at these warehouses. My final verdict, these warehouses are "mostly" good because they gave rust belt areas like mine, a second chance, and gave me and my friends good stable incomes.
I agree with your point. You could also look at some warehouses growing food in vertical farms to supplement the fact of lost farmland.
@@TheOak12345 Well, the thing is, the reason why lots of farmland is being sold is because farmers kids don't want to farm, so they sell it instead of having family assets laying around being wasted. So, the idea to have that type of farming won't be sucessful unfortunately. Not to mention, most of our farmland was being used for corn, soybeans, and alfafa, not even produce. I still appreciate your input!
@@jtkm Yes I know. I lived in SW Ontario outside of London, 90 minutes east of Detroit. Farmland everywhere and yes the "next generation" does not want to farm so big companies or larger conglomerates are buying up the properties. There is a lot of corn for ethanol and soybeans - shipped to other markets. It's mostly year to year as no one controls the weather and I know that's what scares a lot of ppl out of farming or continuing with the family farm. It's hard to turn down high 6 figure or even 7 figure offers.
@@TheOak12345 precisely, I have friends who's grandparents profited off of selling their land for warehousing. Living in SW ON, I assume the area is similar to southcentral PA in terms of economy and climate, being in rural areas within close proximity of various large metropolis'.
A warehouse doesn't have to be ugly. It can get a nice exterior ("skin"?).
Old dude said, I’m cashing in and traveling before I kick the bucket.
im kinda sad that he put everything hes got in that business but now hes selling cause the land is expensive. thats gotta be frustrating.
Just use the closing malls for a lot of them. The enclosed mall is going away so relocate the space.
The design of closed malls is not very good for comercial warehouses.
Malls are in commercial zoned areas. Warehouse needs and transport infrastructure require their own industrial zoning. Not to mention, a warehouse placed where a mall was is most likely to be an eyesore.
Most malls aren’t situated where it would make sense for a warehouse. Malls are typically in the middle of retail sectors of towns which means a lot of cars go through it daily. Adding s bunch of trucks to that would be a nightmare logistically and for traffic. Warehouses are best suited away from heavy traffic.
@@DeadAir21 Actually many of them are well situated near the major highways out in the burbs. Already seeing amazon converting old Sears/JCP etc to distribution centers.
They are not zoned properly for that plus the truck routes aren’t favorable for that
What is not said: as modern retail sales turn to e-Commerce which in turn drives demand for warehouse, the demand for traditional retail stores and shopping malls will decline. Essentially, these warehouses cannibalize retail floor space.
I think this trend is happening globally in other countries too!
COVID situation has accelerated e-commerce business worldwide as people forced to stay at home and purchase from the comfort of their homes and they have become so used to it now… Some people even order just erasers, clips etc. from e-commerce sites and get delivered to their door steps…
I reside in Singapore and working in 3PL industry and the demand for warehouse space has skyrocketed here too…
of course. yeah? so what? the golden age of traditional shopping malls was the 80s. what, are you a shopping mall enthusiast, or something?
seems to me they aught to be building these warehouses on the sites of all the shuttered malls and closed stores, or are we just going to turn the malls back into residential sites?
@@236715238221 I think most people want to move on from covid. Covid is not going to be an issue forever.
@@Redmanticore 😂
I witnessed this warehouse boom first hand as a civil engineering intern at Kimley Horn in Fort Worth Texas this summer. Practically every project I worked on was a massive industrial warehouse somewhere in Dallas Fort Worth. Absolutely nuts.
Civil engineering used to be a great profession in the US - housing, infrastructure, transportation. Then it all shifted overseas, which was still okay if you didn't have family or medical needs back home. Now we're creating the final nails to shut the coffin on the "manufacturing" class. We're in for a tough next 30yrs.
Yep. That's my city and that's what's happening.
i am in your area. Is there a shortage or warehouse workers? I quit that business because only temp agencies hired, so you'd NEVER get hired full time - got crappy pay with no benefits. I am wondering if that changed. Some warehouse jobs are awesome - depends on who you work for.
People complain about the loss of manufacturing jobs, but then complain when jobs show up near their backyard.
@bobcat baldfat drunkbeater
In 1996 the minimum wage was $4.75 and you could buy a house on that wage.
@@matthew8153 I was working at a office supply store in 1996 for that wage. I don't recall being able to even consider buying a house (even a crappy one) with it and remaining solvent. And that was in upstate NY with cheap real-estate. It was enough to buy a used car as a teenager.
@@matthew8153 The game is the game, play or get left behind.
@@matthew8153 someone failed economics
@@samuelmitchell5937
This from the guy who probably never even took an economics class.
This video is really well done. Bonafide experts were interviewed and some real challenges in the industry were identified. Considering the US industrial real estate market is comprised of over 20 billion sq ft and has an aggregate value of over $1.5 Trillion, I'm surprised it's taken this long for the industry to enter the spotlight.
they said lehigh valley a hundred times, but avoided saying allentown or bethelehem, the cities where the water park is. other than that, its a great vid
@@davidanalyst671 I caught how often Lehigh was said too! I'd also disagree that a warehouse is defined as a distribution center over 200,000 sq ft. There are many buildings smaller than that which would still technically be warehouses, but I understand the point they were trying to make.
@@davidanalyst671 so when they say Lehigh Valley I'm sure it's more than one city based on my 13 1/2 yrs of over the road trucking I've been dang near to every corner of the united states, Ontario and Quebec.
This is part and parcel of the push to resurrect company towns.
Exactly
This is not industrial "production". These are jobs paid for in miles of empty store fronts, shopping malls and domestic manufacturing. So now we pave over farm land for the convenience of sitting at home and clicking a mouse.
Exactly
Buy warehouses and lease them to companies
They do this already
You’re about 2 years late for that, Prologis and Amazon have been buying them up for years
We need to reduce our consumerism...
Agreed. People buy a bunch of stuff they don't need. The storage places have been a boom industry for several years now because people can't fit all the stuff they don't use or need in their homes. There is one on every other block where i live.
Don't need touch rural areas. A lot of the empty office parks, dead malls, vacant big box stores etc can be converted into warehouses. The described demand for warehouse space is a reflection of changes in the times.
As much as I'd hate to lose a water park, can't be upset by a 70 something trying to retire. If the community wants to match the offer then should. I'm pretty certain he'd even discount it for the town
@morpheus01736 Who is "we" though. If your 70 year old family member wanted to retire would you tell them not to sell? If you wanted to retire at 70, you either work until you are dead or sell the land, what would you do
@Raoul Duke Who would pay for it?
Thats what I was thinking. 10% discount to anyone who signs keep as is for at least next 3 years
Why is a warehouse considered industrial space given that nothing is actually made or created there?
Anything not offices, homes, parks, shops or restaurants are classified as industrial?
What would you suggest a better classification should be?
Because having an area designated as an industrial zone will keep people from building homes in the area. Would you want to live next to a warehouse with all the lights, sound, and smells coming from them? Most people don't, but there would be some that wouldn't mind it, until they did. Then lawsuits start. Plus, keeping industrial zones further away from housing means less interference with schools, churches, and any accidents are minimalized and away from nearby neighborhoods.
Trucks in, trucks out, 24/7 every day. Industrial...
@@noammusk519 China distribution zone.
Warehouses are a necessary evil. One of the biggest issues is the truck traffic and no where for drivers to park to get proper rest and services. These towns want the tax revenue but expect drivers to disappear after loading or unloading.
I’m not a trucker but feel there needs to be rest areas near or at big warehouses for truckers to have proper rest for safer driving .
I'm for minimal regulation, but this is getting excessive. Needs to be reigned in. There is plenty of space available in many run-down sections of many cities, and oh, there is also plenty of land available in mid-size airports to build on and around the property. Let's take advantage of that, push those areas, before we destroy virgin land or worse, take away farmland that we won't get back.
Already killed every ounce of farmland in my home town. Sad to see a once beautiful small town of farms and local restaurants become pavement, traffic and ugly sun blocking bricks.
When I hear warehouses I remember the fire that burned down an online retailer's big warehouse northside of Tokyo in 2017. 70,000 square meters (or 750,000 sq feet) in floor space packed with office supplies worth 200 million US bucks in retail value. It took 12 days to completely extinguish the fire.
One fire 5 years ago. This is definitive proof that warehouses are too dangerous, so we should ban them so society can be devastated when there's a supply chain problem lasting more than a couple days.
Everything bought online. To have almost no consumer electronics store (best buy still there, but come on) in Silicon Valley is unthinkable. Same goes for photography equipment.
Moving to Taiwan where literally everything is at your fingertips, 15 minutes away from you ready to pick up while still having the option to deliver quickly was refreshing.
So true! I saw so many electronics over there and the cities are amazing
Supply chain disruptions impact JIT processes, so industry is reverting to CRP II modalities, which requires inputs be stored locally.
Perhaps paying over the road truckers better could help? Heck , it's hard enough to get someone into plumbing and electrical.
The mall was probably a smaller scale warehouse in its own right. Now Bezos is buying up dying malls for storage space. What goes around, comes around.
Local as in a store?
All this is well and good till a few years down the line when everything goes back to normal and some executives cut back on this, show investors that they reduced cost and get fat bonuses. JIT is the most efficient and we will return to that eventually.
Please speak like a normal human being
Boomer complains about warehouses then quickly sells his land to warehouse company.
I think you missed the point
green
You can thank Amazon for the warehouse boom.
@@Mrcharles. and anyone that buys online.
Why not! 😂
People want all their online shopping to be in stock and there the next day but complain when companies need warehouses to make that possible.
I've been thinking about warehouses ever since I started working on an automated delivery system project. Planing the first delivery polls along a test track and was thinking of how to link my apartments, store and wearhouses as part of the test sight. Seeing how these are placed for short delivery distance, would be interesting to look into how to set up for these new locations.
Repent to Jesus Christ !
“Cast all your anxiety on him because he cares for you.”
1 Peter 5:7 NIV
N
@@jesusislord6545 Is there something wrong with delivery polls? Is this quote reference to how they are like crosses that care for you?
Really? Jesus who!!! I'm Buddhist!!!
@@vincentanguoni8938 what dose any of this have to do with warehouses and delivery polls?
@@alphonsobutlakiv789It has to do with every affair of man!
Even in India new warehouses are under construction every where mostly from flipcart and amazon , and it creates more than 10k + local jobs near its facilities , which is a much needed thing in a country like India
Meanwhile local shops are also shutting down as they fail to get the margin they need to survive from the customers who now have ability to lookup prices online.
@@AS-ug2vq That's a matter of concern too but Indians still prefer offline shops to purchase daily grocery items , consumer products , and bigger electronic items ... but still this warehouses are good for the development of rural and suburban areas
Loaded up on STAG during the pandemic and made good returns/monthly dividends. One of the best REITs for industrial warehouses IMO!
Prologis
STAG looks really good too. Good job on the purchase.
He has a right to retire and sell his investment as he wishes. Good for him.
You can always deal with the devil as long as he pays cash! 😀
its sad that he built all that stuff and hired people and put money into it, and all he gets out of it is the land his business sits on.
Noblesse oblige my friend. He also has a responsibility to his neighbours and duty to preserve and improve his community. At the very least he should take some of the money to retire and reinvest the rest back into the community.
His retirement ironically is coffin in few years. & His money will go to some young.
I can’t say I’m against it if it brings good paying jobs, especially in regions that haven’t seen that kind of thing for a long time (the rust belt)
idk what the issue is... it's a thing people want.
the journalists will always find an issue with everything.
Generally speaking most warehouses are non union and don’t pay very well. Not terrible but not great either.
Generally speaking most warehouses are non union and don’t pay very well. Not terrible but not great either.
Generally speaking most warehouses are non union and don’t pay very well. Not terrible but not great either.
These are NOT good paying jobs.
they should solar panels on their roofs
@Yummy Spaghetti Noodles I don't think that's how it works. If the price of electricity goes down there will be a lot more use hence driving the price back up until a new equilibrium
Right! Solar could just about pay off most of their operating costs.
One would think that the huge roof area of warehouses are a surefire place to put in solar panels...but noooooo....no such sensible luck.
The do here in California.
@@SA2004YG go google the price of electricity in california. Its right there, smacking you in the face
Honestly warehouse work is hot and sweaty but I felt more self respect in my 6 months of warehouse work than I ever have in my 4 years of retail work
This might be a good thing if these warehouse jobs were not so exploitative, or maybe its just amazon that is, idk.
Don’t worry robot’s are coming to take those jobs, then you will whine about something else.
Don’t be naive. Its not a good thing. You have warehouses because you have no more manufacturing and it’s all imported. Manufacturing is where the money is. You are just getting the breadcrumbs.
nope there all like that soo theyll all be automated by robots with no emplyees these companys dont care about workers just money
In my area amazons beginner warehouse pay seems quite appealing. I have heard about the working conditions not being favorable though and I wouldn’t want to support a warehouse that willingly puts its employees at risk of hurting themselves
@Will Swift go crypto , be smart ? LOOOL ( the earth is flat, be smart )
Pennsylvania's new nickname: The State of Logistics
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Great watch! Definitely learned a lot
If you buy overseas you must have warehouses to store the container loads of products coming in. Compared to product made in USA can be shipped direct from manufacture .
Worked at amazon in 2015. It was just fine. Until they let us go for making too much money, they called it budget cuts. That was before the 4 day/10 hour a day, work week. If you're a CDL driver its great tho, money hand over fist. Plus piece of mind.
As someone who lives in the Lehigh Valley, the pictures they showed are very little compared to how much is here. Crazy stuff! (And a good video from CNBC for once!)
Part of this new shipping problems is the warehouses. The prices are sky rocketing to the point where no one will keep things in a warehouse and only ship from Factory direct which mean you have to wait for your product when it is made instead of storing a stock so it can be shipped right away.
How in the world did Sears and Montgomery Ward stay in business as long as they did without these super warehouses? Especially since they sold a lot of bulky appliances and tools taking up a lot of space. Even UPS did not have as many warehouses as the ones that are being built now. Humanity got along fine without Amazon, why do we need these places?
"Humanity got along fine without Amazon" then COVID hit. I never ordered by catalog or online until COVID. Now everything I buy comes to the door and realistically I don't see myself going back.
Thank you someone who finally get’s it I don’t like any of this. Very sad what happened to seeing the beautiful green earth when driving on a road trip. Now it’s literally warehouses every second.
@@nofacemechanic2328 I wish more people would "get it". Near where I live we are trying to fight an Amazon warehouse from being built in Churchill, a residential area outside of Pittsburgh. Best strategy might be to keep putting it off until Amazon loses interest. How did Sears get along without so many?
@@MrNeptunebob Keep on fighting the good fight. Sears is something one Sears that was like a mega Sears you can say closed down two years ago in Houston. It then turned into a BMW dealership but that Sears been open longer then I’ve been alive I’m twenty-two. Warehouses are nothing I pray that Jesus Christ returns soon so I can see the beautiful grass on the new earth. Don’t know if your a Christian but put your belief and faith in Christ and repent and I tell you brother we’ll be looking at the wonderful outdoors from a far much better view.
@@nofacemechanic2328 The place Amazon wants has a lot of outdoors, like the scuba diving place does (did). I am Catholic, so I have repented many times. People who love Amazon seems like a cult, almost like Amway. They say "I want my prime!!"
Couldn’t take my eyes off the reporters sneakers
Probaby a product placement. 😂
I bet most of these people are temp or contract workers. It's much cheaper than hiring full time, and if someone gets hurt it's the temp agency that has to pay out.
I'm very sad to see Dutch Springs go. It would be nice to keep access to the water for diving, but the facility as a whole was a gem that holds some great memories.
Started building this new more modern style warehousing Facilities in the late 70s -early 80s with easy access to the majors highways.
A article on who influenced and innovative this system of sutigitly demographically place wear houses would be interesting.
I live in the Lehigh Valley.. People just need to chill out. The warehouses will come whether we like it or not
After the Amazon warehouse collapse in Illinois after the tornado a few weeks ago; I worry for workers and their safety.
It's why there is not a chance in the world I will buy from Amazon again. They are a corrupt company.
Thanks in a million. Great content. Awesome. Grade: A++💥
There is good argument on both sides of this issue. Highrise warehouses perhaps?
Covid 19 gave us a wakeup call of how vulnerable we are. We had to outsource to China to supply us with needed medical suppliers. So these warehouses is not only about the consumer, it is about the public as a whole.
I'm all for more warehousing and industrial space, I just wish they were more judicious about the locations!
It's great seeing them turn dead malls and plazas into useful warehouses, not so great seeing them plop warehouses in the middle of towns where we desperately need more housing.
the way products are kept and moved around/transported are often extremely inefficient, though. if done right, far less warehouse space would be needed. Also, may are only open 9 to 5, M- F. That is part of the ineffiency. Many are filled with products that are rarely touched - crap made for events that came and went, stuff no one wants, stuff a big co. forgets it even has. That might be 10 to 15% of all inventory in the USA. Some warehouses throw away a lot of stuff, because it is cheaper than fixing the torn plastic covering (might be unable to do that in most warehouses, so would have to be sent back to manufacturer).
Also, I worked at a NJ-owned warehouse that had a HUGE number of illegals in one half of the warehouse. At night, they'd sneak into the half I worked in and steal stuff. SO, at 4 pm, our staff had to hide boxes by using forklifts to put the pallets on 2d or third section. many times, the illegals would climb to the 2nd level of racks and cut open boxes.
warehouses provided lots of jobs but the work environment is toxic. snitching, lying, gossiping, rumors, disrespect, yelling, talking down, bad managent, standing all day, hawk eyes everywhere. it's ridiculous
My thing is while we keep growing the numbers of warehouse, our trucking retention is declining. What are we going to do to fix this? Automation?
We can all do something about this: just stop buying so much cr*p that we don't need and that doesn't really make us happy.
As if that will happen
@@SA2004YG it's actually rather easy to cut back on several tonnes of co2 per person every year. Consume fewer frivolous items, cycle more, take public transport more, fly a bit less, eat less beef. We can all do our bit. It's incredibly hard to get to carbon zero, but we can all very easily reduce our co2 by a couple of tonnes each per year, which makes a gigantic difference if we all do it.
@Joe Hodgson it's only easy in theory, in practice getting people to do anything is harder than going to the moon. Especially if its all people or even majority
Two ideas: Start building warehouses underground, build sustainable communities and or parks above them. Above ground warehouses should all be covered in solar panels, so much acreage for energy production!
digging out and creating an underground facility is incredibly expensive to build and operate - think of all the additional air conditioning, ventilation, lighting etc. needed. It's more likely that warehouses will become multi-storey (meaning stacked on top of each other) , like how they are in places like Singapore and Hong Kong.
Great report. Thank you for sharing
I deliver parts all day long for vehicles and I'm in a small pickup the amount of semis with logistics on the back of their truck is incredible there are thousands and thousands and thousands of trucks out there hauling freight from Warehouse to Warehouse and there's a shortage it's weird how that works
You would think some of these dead malls and empty big box stores could get used. Also if you ran rail lines directly into the warehouses you wouldn't need as many trucks clogging the roads.
Side note, how many of these warehouse sites where forests and farms? In other words where are the wild things going to live and where are we going to grow food?
And that should concern us all! Where are we going to grow our food because these warehouses our built on farmland!
Wait! Listen up. Make rate every 10 seconds. No rest at all. Only when you are allowed. Managers and pg and pa will intimidate you on a day you’re not feeling good and you are slower than usual. Everyone doesn’t realy care when you are top 10 employees. If you’re too fast. You’ll be assigned to a new work station. Not just once, not just twice, not just thrice. But pretty much the faster you are, the more work they’ll give you. They don’t like it when their best fastest employees want a 1 or 3 minute breather.
I work for a major grocery store chain in the southeast in their distribution center and just the warehouse alone is over 1 mile long
idk, i used to work in warehousing and they were way overbuilt - that was 15 or so years aog. But, thouse warehouse 'industrial parks' stayed mostly empty with partially finished warehouses, for over 10 years.
It could be why prices have gone up, because of the lack of warehouses. So besides hiring more people, it can effectively help to lower prices for the consumer.
It's the future of retail. Instead of seeing big box stores or retailers or retail outlets, your just gonna see warehouses distribution centers.
I doubt the day will ever come that retail will be all online. You really want to buy something like toothpaste online?
@@dvferyance well. I do buy toothpast online with one day delivery. I can get 3 tubes of toothpaste for just a little more money then buying one tube.
Y’all should see the Central Valley of Cali east of the Bay Area… nothing but warehouses and orchards that are probably going to become warehouses
The problem with this is, we are warehousing other countries goods instead of building factories to produce our own.
Factories introduce air pollution and still need a place to store product. No thanks.
I drive long distance and I see the huge warehouses going up everywhere,for storage of made in China crap. I haven't seen one manufacturing facility being built.
The small city I live in is building a lot of warehouses and tearing down a lot of wildlife habitats to make room for more businesses that some of the “ new” shops being built can be found in the next city 10-15 minutes away.
That's partly because manufacturing requires trained, drug-free workers who will stick around for several years. Many are still covered under a union, so it's mostly FT/benefits (though it's iffy in "right to work" States). Lot of capital investment in machinery and infrastructure (electrical, transport, etc). Warehouses are comparatively cheap to put up & lease out, and the business is reliable - no matter what the actual products are, the landlord still gets paid.
We're only gonna see manufacturing jobs in the States if Americans decide they want to start those businesses, *and* if it costs as much to hire overseas + shipping costs, as hiring workers here. Even then, a lot of it is already getting automated, so I don't know if most mfg is ever coming back.
Housing costs have also gone up nicely in the Lehigh Valley.
They've gone up nicely almost everywhere in the country. So have rents. California is just ahead of the game. Homeless everywhere. Homes rented out with cars spilling onto the streets for parking because very few people can afford to rent a home without lots of room mates. Since there are warehouses as far as the eye can see, there is no room to build more homes. Enjoy the money.
America is an import and consumer economy. China and many countries in Asia are manufacturing and exporting economies.
It is a follow on to the death of "just in time" inventory. JIT only works if every part of the shipping industry works perfectly.
A lot of jobs, but none that are going to give you any living standard.
45k for a high school diploma holder is a dam good standard of living lol
if you don’t have a college degree , then it’s a decent job with decent living standards
@@johnsamuel1999 I mean you can live on 45k in most places, so ya when the average high school degree holder makes half of that its good
No one gives you a living standard, you work for it by making yourself more valuable. Where did we lose this concept?
These jobs do not pay well. $14 an/hr. 😂
You refer to warehouses as “industrial” space. They’re not. They’re “post/industrial” space; a symptom of the short-sighted and ill-advised outsourcing boom of the ‘90s and ‘00s. Every one of these warehouses is another Chinese beachhead in our domestic economy.
absolutely, why are we not building manufacturing facilities instead? because companies can pay asians pennies on the usd and force them to work 7 days a week 12 hrs a day
Mr. Schooley is such a sweet man. May he live long and happy.
He doesn't really have much time lol
Great video. All they need to add is public transportation to these warehouses (jobs)
The warehouses brought jobs, sure but it also brought in more people than the cities and townships can handle. Too many people caused rents and house prices to rise beyond being affordable. We desperately need new home construction and road Expansion. Commuting anywhere is completely abysmal. Especially since the new people are not from here so they don't care how they drive. Stoplights and stop signs don't matter to these people. Deaths from crashes or road rage are on the rise. Trucks are everywhere, especially where they're not supposed to be. Too much property damage from new truck drivers with sh*t experience. Stress is on the rise. I can go on and on about how bad this overbuilding of warehouses has made it living here.
Isn't capitalism great!
just build more public transportation, rails, bus's etc
Retailers are excelerating going online. More difficult to loot the web.
My poor guy at the end still thinking he's 72.
Thank you for the information. I have a question that if my foreign clients send inventory at my business address by purchasing it online from retailers/distributors through FRAUDULENT CREDIT CARDS, and I receive, pack and ship it to the customers, who you think will be held legally responsible for that fraudulent purchases: the warehouse owner (me) or my clients (mostly foreigners). There is no way for me to verify their purchases.
Is there any kind of insurance or law that can protect warehouse owners from this type of business scams?
Consumerism has been pushing the ecosystems of our planet to their limits and the US has by far the highest waste of natural resources per capita as well as the highest CO2 footprint per capita. Your obession to consume and waste energy is killing us.
I mean the US doesnt have the highest by far, for wasted natural resources look towards China, and our CO2 foot print has been falling for years verses China's and India's
Yes, but before that, population. Go covid!
US has by far the highest waste of natural resources per capita < actually, usa is number #16 on co2 per capita. qatar is number one. they need to cool their houses all the time.
canada is number #7 as a first western country, its because canada is cold country, they need to heat their houses a lot and long.
In the warehouse replacement parts business. We cant keep up with demand, growth is crazy.
One hotel/convention property in Las Vegas has a cool million sqf of mostly empty convention space under roof. Will conventions be back? One has to wonder...
She takes trench coats to a new level.
if she were a guy wearing that, people would call him a school shooter. but because its a woman, she just has awkward taste in clothing.
Man we need manufacturing back so we are not so dependent on countries who hate us for products we as nation need.
Its hard, because some products just simply can't be made in the usa. The US just doesn't have the raw materials or specialized machines to produce it here. This is why trade exists.
Like what? What products?
@@Rootkit_69 l
Natural paint brushes use pig hair for the bristles. The special breed of pig used to get these hairs are farmed in China. China is a very big consumer of pig products, so they harvest the hair as a raw material for to make brushes for trade.
There better be a renaissance of house music as in that’s how it got its name and one of ways it got popular!
The best thing about this is more products readily available at lower prices and free shipping. If I am familiar with the product and don't need it in a hurry it is becoming my choice way to buy higher ticket items. I can save over $100 on a single item sometimes or get items not readily available locally. Know what your buying and it works pretty good. No way I would order groceries for fear of getting almost stale or poor quality items.
Online shopping is become bs. Just replacing malls and lowering our quality of life
“Affordable area”, yeah right lol 😂. When stuff like this happens it no longer becomes “affordable”.
Why are the springs gonna go away? you can't build warehouses on water. just because he is gonna sell the surrounding 100 acres shouldn't mean the water park has to close.
@11:45 -- I figured with the closing of different malls that would balance out to some degree the need for more warehouse space.
As long as the warehouse helps the local economy, that's great news.
Why are they not putting solar panels on all those acres of roof?! Looks like a missed opportunity!
solar panels only really make sense if your state is pushing electricity prices up like California does
because the idea is to lower prices on items, not raise them just to benefit corporate social welfare, which is what solar is.
So warehousing is back. What happens to JIT (Just-in-Time)?
jit philosophy will be gone until covid is gone.
Well, the real reason we need more warehouses is to store all the crap people won't buy! After that's cleared away, convert them to homeless shelters. It's a win-win.
I work at Amazon and am experiencing my 4th Peak Season. It's really nice to be working in a growing industry paying historically top wages. With OT, I can easily make $60K and then some. But this job is incredibly physically demanding and requires standing on your feet 11 or 12 hours per day - something many of our youth are just prepared for. I also believe in supporting our company by being an Amazon Prime Member that buys packages nearly every week throughout the year. I cannot stress the convenience and selection at hand that eliminates my driving in my car to find obscure products that stores like Walmart often times don't have in stock.
Nice that's a sweet gig. Get that money. Do you think you get health benefits from standing and walking so much or do you think it may lead to health issues if you keep working there for a decade or more?
That's funny, your the first person to state, it's nice working for Amazon...you must be in management!
🤣🤣🤣🤣🤣🤣🤣🤣🤣
Keep them warehouses coming America it helps me and the team of Construction workers busy. I've built nothing but warehouses for a few years now and appreciate how this trickles down to my well being. I see no reason to switch things up and the workforce it contributes to is A TON of different industries not even recognized or spoke about. Keep US busy! 🇺🇸
Very interesting and well done. Sure makes it sound like a thriving economy but I guess that's still not the case
So this is what will soon be replacing the American shopping mall.
Absolutely dystopian
Warehouses are necessary but it’s also possible to put them underground and put parks, housing and farmland over them. Warehouses are traditionally a maximum height due to forklifts etc so this isn’t impossible just more expensive.
House cool would it be to have a million square feet of practical warehousing and a million square feet of park, housing, solar and amenities on top. We need to start thinking like engineers of the 1800s/1900s.
That cost money
Awesome IDEA!
So you're paying to move the warehouses to underground right? Or are you gonna start building them underground which would cost millions of more dollars?
I mean tho, you are willing to pay millions of dollars to put some parks on top right?
I'd bet those parks are gonna be super popular!
@@mit3da9yo ok, so yes I would prefer if the likes of amazon who makes billions of dollars of profit on the backs of poor people pay for their warehouses not to be an eyesore or blight on the landscape.
There are lots of benefits t digging a big hole and putting a roof on it. It does cost money but corporate America and less so corporate Europe are not paying their fair share back to the people.
There are engineering example of this around the world. For example the London sewers were not built with TBMs but are still in use today. There are also underground rail stations the size of football fields without showing any sign above ground. The only people that would object to storage being underground and out of site are people invested in cheap land and real estate. I’m sorry but the excuse of it would cost millions just doesn’t cut it in a world we’re the likes of amazon basically have slave labour but the boss is worth 100 billion. That’s bull.
@@TheGreatBrownBoy true bud. But I’d rather it. They can right off the cost against tax anyways
Building things underground is expensive, honey.