Today, warehouses are transforming into massive “mega-distribution centers” located in increasingly suburban areas. However, the rapid delivery expectations of E-commerce will also perpetuate the need for a network of local, smaller-scale supply points.

Key findings

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Historically, warehouses tended to be smaller buildings located near central business districts. However, the size and location of warehouses in the U.S. is rapidly changing toward massive "mega-distribution centers" located in predominantly suburban areas.

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This shift is being caused by advances in warehousing technology that are only cost-effective when implemented at a large scale. The rise of autonomous vehicle (AV) technology will continue this trend towards mega-distribution centers, as will e-commerce trends.

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The rapid globalization of the supply chain will also affect distribution strategies, suggesting a possible return to warehouse locations with access to a maritime port.

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