High Demand for Warehousing

High Demand for Warehousing

A Successful 3PL Transition


The pandemic has brought many challenges to people and businesses alike.  Of significant impact to the logistics industry and their customers, is the tightening of available warehouse space.  In a recent Forbes article, it’s mentioned that $1 billion in e-commerce sales results in 1.25 million square feet of warehouse space needed and “…this figure far exceeds the previous five-year annual average of 211 million square feet.  Add to this the growing infill warehouse space demand in urban cores, and you are sure to understand the projected record-high levels of new warehouse construction.”

North of the border, available warehouse space in Canada is at a historic low – heavily fueled by the increase in e-commerce.  Vacancy rates in Toronto, Vancouver, and Montreal are the lowest in North America.  Developers are struggling to keep up and are busily converting existing buildings to help meet demand.  According to real estate services company CBRE Ltd, “About 10.4 million square feet of warehouse space was leased across Canada in the first three months of this year”.  We believe strongly in planning ahead and were able to see this constriction coming.  One of those new leases noted in the report includes NRI’s latest footprint in Brampton, Ontario – part of the Greater Toronto Area.

NRI recently announced our expansion to both Easton, Pennsylvania and Toronto, Ontario.  We have experienced significant growth from our clients, in part due to the pandemic.  With the acquisition of our newest warehouse facilities, we have strengthened our “Four Corners” strategy.  This positions our warehouse facilities in key geographies in both eastern and western Canada and the US.  With our multiple facilities across the 2 countries, we are able to service our clients’ customers in shortened time frames, thus keeping up with consumer delivery-time expectations and reduced transportation costs.

What this all translates to, for those considering the switch to the 3PL model or to a new 3PL partner, is that proactiveness is key.  A successful, long-term partnership begins with a solid foundation and advanced planning so that both parties can implement necessary resources and execute an effective transition plan.

Start your discovery process early and you will be well positioned for success.  We have dedicated teams to help you plan your move to NRI.

Case Study: Aloha Collection

Aloha Collection started in 2013 with two founders, Rachael and Heather. Their vision is to “build an international ‘Ohana, one bag at a time” with their mission being “to encourage travel, adventure, healthy and active lifestyles, and to Share the ALOHA”. Best of all, they donate 5% of profits to a Hawai’i-based conservation organization.

Within the two short years of their founding, the accessories company grew
exponentially. While running their business from their homes in Southern
California, the two co-founders ran out of physical space and sought help
from a 3PL provider. With the desire to continue their travels and test their
products, the co-founders needed a trusted partner to fulfill their orders
accurately and continue to service their customers. They began their partnership with NRI in 2017 and have since seen an 800% growth.

See the full case study here: Aloha Collection Case Study