b'14American Journal ofTransportation ajot.comWarehouse construction industry expected to stabilize WAREHOUSING WarehouseconstructionindustryexpectedtostabilizewhilePROVIDERS 26evolving to support todays supply chains.By Debra Phillips, AJOTTheUSwarehouseconstructionsupply chains.industry is expected to begin a slow recovery in 2026, following anotherS UStainaBleW arehoUSec onStrUctionchallengingyear.IndustrialleasingB eGinS Withm aterialSdemandfellby11.3millionsquareSustainablewarehouseconstruc-feetinthesecondquarterof2025,tion begins with the choice of mate-thefirstquarterlydropin15years.rials.Recycledsteel,masstimber, In addition, roughly half of the newand hempcrete are some of the most warehouses constructed in the secondcommonchoices.Becauserecycled quarter of 2025 remain vacant. How- steel is strong, it is often a cornerstone ever, the good news, according to ana- forlargestructures.Masstimberis lysts, is that the industry that began aarenewablealternativetosteeland downwardspiralin2023bottomedconcretewhileofferingexcellent out in 2025 and is poised for a slowstrength and aesthetics. Hempcrete is recovery in 2026. abio-compositeofhemp,lime,and Experts point out several signs thatwater, providing excellent insulation the industry is turning a corner. Therewithcarbonnegativity.Warehouses have been slight improvements in con- arebeginningtousesolarpanels, sumersentimentabouttheeconomy.(STABILIZEcontinued on page 16)Analysts also note that while it is still expensive to build and operate ware-houses in the US, the cost of inflationB R A T I Nisplateauing. AccordingtotheNewL E GWarehouse Construction Price Index,C Edevelopers can deal with stable costs, even if they are high, more easily than unpredictable conditions.Future projects will be more stra- 1920-2020tegic because many companies madeO EmajoradjustmentstotheirsupplyF SERVICchains after the pandemic disruption, leading to more accurate predictionsSUCCESS STARTS WITH A WINNING TEAM!of the demand for their products and the need for warehouses.Theconditionsthatledtothe warehouseconstructionindustrySince our establishment in 1920, we haveWE OFFER OUR CUSTOMERS:downturn began with the COVID-19been providing our global customers aOn-site Storage and Multi-modalpandemic.Shortagesofequipmentpremier level of service through superior andmedicinestotreatseriouslyillhandling and performance, technologicalDistribution Services patients, and panic buying of neces- advancements, and a perpetual eyeCustomer Access to 24 hour Inventory Trackingsities like baby formula, created newon customer satisfaction. Also, we offer one Standard Berths and Ro-Ro Ramps are available demandforcertainmarketsectors.of the most cost effective and reliable labor Specially engineered Lifting Gear Manufacturingrampedupproduc- forces in the North Atlantic. Container Transloading from / to Rail or Truck tion, leading to the necessity for more On-site service provided by 2 Class I warehouse space to store and processWe have the ability to accommodate aRail Carriersproducts. When the pandemic condi- variety of automobile, breakbulk, bulk, Efficient Distribution to Two Thirds of the tionsbecamelesssevere,industriescontainer and forest products. OurUnited States and Canadian populations within likewarehouseconstructionfaceddistinction, is based on our ability to closely48 - 72 Hours sharp downturns. coordinate your Stevedoring, Warehousing and Distribution Logistics. W arehoUSeS oFt odayd iFFerentt hant hoSe oF theP aStAsthewarehouseconstruction industry begins to recover, it will be different in many ways from the peak yearsleadinguptoandthroughthe pandemic. Rather than taking a build it,andtheywillcomeapproach tospeculativewarehousebuilding,FOR MORE INFORMATION todaysdevelopersarefocusingonCONTACT US AT:previouslyplannedprojectsthathad beenputonholdthroughlate2024JH STEVEDORING, INC. and 2025. In addition to more cautious2147 South Columbus Blvd. developments, the warehouses of todayPhiladelphia, PA 19148aredifferentthanthoseconstructedTEL: 215-218-3060FAX: 215-218-3078during the peak period of 2022. WEB: www.jhstevedoring.comNewwarehousesarebeing con-structedwithafocusonenergy PENN WAREHOUSING & DISTRIBUTION, INC. efficiency and are designed to accom- 2147 South Columbus Blvd. modatetechnologyandautomation,Philadelphia, PA 19148includingrobotics.AnotherchangeTEL: 215-218-3000involvestheselectionoflocationsFAX: 215-218-3043forwarehouses.WhilewarehousesWEB: www.pennwarehousing.comwill continue to be built with access tomajortransportationhubs,other factorsareleadingtowarehouse constructionstrategicallylocated tosupportinlandports.Scalability andflexibilityinwarehousedesign are also important to support todays'