US Transportation and Warehousing Sector NAICS 48

Jun 12, 2025 - Warehouse Industry Revenue Climbs

• Warehousing and storage service industry revenue increased by 7.9% year over year in Q4 2024 to about $15.3 billion, according to the US Bureau of Labor Statistics. Several industry trends have allowed warehousing companies to increase offerings and thereby increase revenues. A boom of e-commerce shopping brought on by the pandemic has increased demand for last-mile delivery services and the geographically broad storage needs of retailers. The pandemic has also spurred suppliers to increase inventory levels to boost flexibility to supply chain disruptions. Technologically, use of automation, robotics, and AI is driving efficiencies and allowing warehousers to handle more volume and increase capacity. The growth of specialty storage needs, such as refrigerated warehouses for pharmaceuticals and frozen foods are infusing the industry with new, high-priced services. And as industrial land becomes more expensive to build on, the warehousing industry is increasingly passing those costs on to customers.
• The logistics industry was relatively calm in 2024 as companies recovered from the pandemic, but now it faces new upheaval due to a worldwide trade war. Last year, US companies spent $2.6 trillion on transportation, inventory, and other shipping expenses - a 5.4% increase from the previous year. While the year was still challenging due to trucking overcapacity, flat shipping rates, and increased fuel and labor costs, logistics providers appeared to be turning the corner from Covid. As the effects of the Trump administration’s on again, off again tariffs become realized, retailers spent early 2025 stockpiling inventory and paring down new orders. As mid-year arrives, some retailers are hiking prices to compensate for additional import costs. The result has been a 0.2% contraction in the overall US economy in Q1 and slow growth in consumer spending in April.

• The US House of Representatives and the Senate voted in May 2025 to undo waivers from the Environmental Protection Agency that allowed California to set aggressive vehicle pollution standards in its state. It is the latest attempt by Congress to set aside California’s mandates for trucking’s transformation to electric vehicles (EVs) and its plan for 35% of new automobiles sold to be zero-emission. California is one of the nation’s biggest auto markets and a dozen other states, who can’t set standards of their own, nevertheless followed California’s lead on EVs. Accordingly, roughly 30% of the US auto market could be affected since they followed the Golden State’s lead. Trucking trade associations and auto makers, who have long felt the targets were unrealistic and overly aggressive, supported the move. The bill now heads to Trump for a signature, while California has indicated it might sue to get the rules reinstated.
• Airlines experienced strong demand for flights headed into the 2025 summer travel season, but that good news is also shining a light on the shortage of available commercial jets due to production delays at the world’s largest airplane manufacturers - Boeing and Airbus. Both companies have fallen short of their deadlines for delivery of new aircraft to customers, resulting in industry-wide capacity boosts of only 1-3% for the summer season, according to EasyJet CEO Kenton Jarvis. Europe’s Airbus delivered 56 jets in April 2025, an 8% drop year over year. Boeing, which has been consumed with safety crises and production problems for several years, is slowly improving this year and delivered 45 jets in April, which doubled from March. However, airplane delivery totals for both companies in Q1 indicate they will have trouble meeting their targets for the year, per aviation analytics firm Cirium.