Warehouse Space Demand Increasing

Companies have changed their inventory methods to protect themselves against the supply chain problem. In addition to practices like safety stock, companies are now hoarding warehouse space – taking warehouse space they can’t fill or don’t currently need to be prepared. New warehouse space is being pre-leased and close to 100% of existing space is already filled. The supply chain problems are interrupting the construction of new space due to shortages and delays of building material.

It could be 2024 before things normalize according to experts and because of the explosion in e-commerce during COVID and becoming the new normal, this could continue into 2025 or beyond.

To tackle this issue, companies can rethink and maximize their current space. Retrofitting old space, splitting a single-use space into multiple spaces, and repurposing existing space can help.

KTI is a 3PL with multiple locations offering flexible storage solutions for companies on a short and long-term basis. If you’ve run out of solutions to find, maximize, or repurpose space, give us a call to discuss your needs – (540) 994-9899.