Flextronics - Competitors

Flextronics Competition

Now Viewing Flextronics's competition in: Warehousing and Storage

Recent Developments

Warehouse Construction Increasing - Increasing global trade volume is fueling growth in US warehouse construction. The total value of warehouse construction put in place in the US rose 7.4 percent in March 2008 compared to March 2007. Construction of general commercial warehouse space rose 6.7 percent; mini-storage construction rose 18.2 percent.

Warehouse Vacancy Rates Stable - US warehouse vacancy rates have been stable for the five months ending October 2007, according to Grubb & Ellis, the latest period for which figures are available. Strong imports and healthy corporate profits offset weakness in the housing market to provide the stability. Warehouse vacancy rates in cities tracked by Grubb & Ellis ranged from a low of 1.5 percent in Los Angeles to a high of 19.4 percent in Oklahoma City.

Industrial Production Growth Remains Positive - US industrial production, a driver of demand for warehouse and storage space, rose 1.3 percent in first quarter 2008 compared to the same period in 2007; durable goods production rose 3 percent. Many experts are concerned that continuing US economic weakness could decrease industrial production, resulting in falling demand for warehouse and storage space.

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 4.7 percent between 2007 and 2012.

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.