Los Angeles, CA (PRWEB) June 28, 2012
Specialized Storage and Warehousing industry revenue is expected to grow an average rate of 3.8% per year to $ 5.0 billion over the five years to 2012. The industry benefited from strong growth in many market segments, with bulk petroleum storage leading the way. Petroleum storage is the industry's largest revenue generator, and industry revenue growth generally follows the same trend as total petroleum stocks in the United States. According to IBISWorld industry analyst Lauren Setar, after a moderate contraction in 2010 due to a decrease in the number of new cars in storage and eased capacity constraints in petroleum storage, industry revenue expanded in 2011 and is expected to grow 3.7% in 2012. The growth reflects a projected increase in oil extraction and refining activity, improving economic conditions and increasing demand for new cars, lumber, chemicals and petroleum, which will ease storage requirements. IBISWorld forecasts revenue will continue growing over the next five years.
Total petroleum stocks in the United States grew steadily in 2007 and 2008, and then jumped in 2009 as investors, speculators and oil refiners took advantage of lower prices to build up inventories. Automobile dead storage also boomed in 2009 due to global automobile overproduction. This coincided with recessionary conditions and a substantial downturn in the demand for new cars in 2008 and 2009. Furthermore, automobile manufacturers were slow to cut production, causing automotive dead storage to fill to capacity. New entrants to the Specialized Storage and Warehousing industry scrambled to take advantage of the short-term demand spike for automobile dead storage, boosting industry establishments and employment in 2010, says Setar. Establishment levels remained flat throughout the past five years, with a moderate average increase in employment and wages as the industry hired new staff due to increased demand in 2009. However, the operators that flooded the industry in 2010 may struggle over the five years through 2017 as demand for automobiles continues to increase, reducing demand for the storage of unsold inventories.
The industry has a low level of market share concentration. The top companies include Colonial Group Inc. and Sunoco Inc. Industry concentration varies among segments. The auto dead storage segment has low industry concentration due to limited barriers to entry, low capital costs and a low level of legislative requirements. In contrast, bulk petroleum storage is capital intensive and operators need to adhere to comprehensive legislative requirements and environmental regulation. As such, the segment has a very high concentration. Industry concentration in the petroleum storage segment is expected to remain high over the next five years. For more information, visit IBISWorlds Specialized Storage and Warehousing in the US industry report page.
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IBISWorld industry Report Key Topics
This industry comprises establishments primarily engaged in operating warehousing and storage facilities (except general merchandise, refrigerated and farm product warehousing and storage).
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios
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Recognized as the nations most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.