US Transportation and Warehousing Sector
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 294,054 transportation and warehousing establishments in the US provide the transport of commodities, goods, cargo, and passengers by land, sea, or air as well as temporary and long-term storage for goods.
Variable Fuel Costs
Fuel is a major expense, and the cost can vary significantly based on global market conditions.
Supply Chain Interdependence
The transportation and warehouse sectors are integral parts of the supply chain so the sectors are dependent on the effectiveness of the other links, which include suppliers, manufacturers, wholesalers, importers, exporters, e-commerce, and distributors that may be located anywhere in the world.
Industry size & Structure
The transportation and warehousing sector is comprised of 294,054 establishments that employ 6.6 million workers and generate $1.4 trillion in annual revenue, according to government sources.
- The transportation and warehousing sector represents 2.7% of the nation's Gross Domestic Product (GDP) and employs 4% of the country's workers.
- The sector is concentrated at the top with the 20 largest firms representing 34% of revenue, but it is fragmented at the bottom.
- In addition to employer establishments, the transportation and warehousing sector has 2.5 million owner-operated establishments with no employees. Subsectors with the highest numbers of nonemployer establishments are transit and ground passenger transportation (52%); truck transportation (27%); couriers and messengers (14%); and support activities for transportation (6%). The owners of nonemployer establishments typically perform the work and may outsource support functions like marketing and accounting.
- The transportation and warehousing sector shed about 27,000 establishments in 2021, which equals about 8.5% of existing establishments, according to the Bureau of Labor Statistics. However, the sector added about 43,000 new establishments, which is equivalent to 13.6% of existing establishments. As a result, the sector had a growth rate of 5%.
- The transportation and warehousing sector is forecast to grow its employment base by 8.4% overall in 2021-2031, which is higher than the national average of 5.3% for all jobs, according to the Bureau of Labor Statistics.
Industry Forecast
US Transportation and Warehousing Sector Industry Growth
Recent Developments
Feb 7, 2025 - Feds Halt EV Charging Infrastructure Funding
- Since assuming office in 2025 the Trump administration has been aggressively de-funding and rescinding electric vehicle (EV) targets and mandates across the country. Its latest move is to “pause” federal funding for EV charging infrastructure that is a necessary investment for the wider adoption of EVs. Without EV chargers across the nation - for both cars and semis - buyers will have a hard time getting over “range anxiety,” the concern that your car will run out of charge on long trips without any nearby stations. Some in government have criticized the slow rollout and blamed the feds, but each state is responsible for its own grant spending. The Transportation Department said it will issue new guidance on the project later this year.
- Warehouse leasing rates are expected to rise in 2025 following the conclusion of the US presidential election, according to industrial property development leader Prologis. The warehousing market saw a prolonged boom during the pandemic when e-commerce ruled retail. Since the end of 2022, though, demand, long-term lease signings, and new warehouse construction have all fallen. The warehouse vacancy rate in the US rose to 6.4% last year, almost double the rate from 2022, according to real estate services company Cushman & Wakefield. Once the uncertainty surrounding the presidential election subsided, Prolongis reported leasing about 61 million square feet of warehouse space in the fourth quarter of last year, a company record. Prolongis also expects little industry disruption from any potential tariffs levied on foreign goods by the Trump administration. Warehousing is dependent on consumer consumption and demand, making where a shipping container originates of little concern to a warehouser.
- The International Monetary Fund projects global trade volume will increase 3.2% in 2025, driven by easing geopolitical tensions, expanding e-commerce, and growing consumer demand in emerging markets. These developments provide fertile ground for freight forwarders and logistics providers to enhance their services and seize new opportunities in cross-border shipping, according to Air Cargo Week.
- Transportation and warehousing sector employment increased moderately and average wages for nonsupervisory employees increased slightly during the first 10 months of 2024, according to the US Bureau of Labor Statistics (BLS). Transportation and warehousing sector prices increased slightly during the first 10 months of 2024. Transportation and warehousing sector sales are forecast to grow at a 4.2% compounded annual rate from 2024 to 2028, comparable to the growth of the overall economy, according to Inforum and the Interindustry Economic Research Fund, Inc.
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