Flextronics - Competitors

Flextronics Competition

Now Viewing Flextronics's competition in: Warehousing and Storage

Recent Developments

Experts Bullish on East Coast Warehousing - Industry experts contend that the East Coast warehousing industry should see an increasingly favorable business climate near-term. Driving the growth is higher transportation and environmental regulation costs at other port areas, especially on the West Coast. Despite increased demand, experts don't expect a building boom, because of the large amount of existing capacity available caused by low demand for some consumer products.

Trend Follows Flexibility - Industry analysts see the future of warehousing in flexible technologies. With economic conditions in the US changing rapidly, warehousing and storage companies increasingly want to be able to adjust inventories in step with economic conditions and retailer demands. Among the technologies helping them adjust are a new line of more affordable warehouse management systems (WMS).

Government Spending Increases Access to Technology - One technology increasingly important to warehousing and storage companies is radio frequency identification (RFID), which helps track products. Recently, the US government's interest in RFID resulted in massive orders for it, which industry experts predict will lead to lower-cost products. Less expensive RFID means that more warehousing and storage companies will be able to use RFID, allowing smaller companies to approach the efficiency of larger companies.

Competitive Landscape

The flow of goods through the domestic economy drives demand in the warehousing business. The profitability of individual companies depends on good marketing, as operations are fairly simple. Although there are economies of scale in operating larger warehouses, there are few economies in owning multiple warehouses. Small companies can compete effectively with larger ones in local markets. The industry is highly labor-intensive: average annual revenue per employee is under $30,000.

Full Industry Overview For Warehousing and Storage

Warehousing and Storage Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US warehousing and storage services is forecast to increase at an annual compounded rate of 4.9 percent between 2008 and 2013.

Warehousing and Storage Growth Steadies

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.