The Miami-based company that became a household name in rental trucks recently announced it would expand its warehouse footprint by adding 17 facilities.
Ryder Systems Inc. manages more than 64 million square feet of warehouse space across North America. Its reported purchase of Midwest Warehouse & Distribution System, based in Woodridge, Illinois, enhances its supply chain capabilities in Chicago, New York, Pennsylvania, Tennessee, and Texas. The dedicated customer warehouses largely handle consumer packaged goods and Ryder’s move comes at a time when warehouse space demand stands at an all-time high. Although the details of the purchase have not been made public, freight and logistics experts anticipate the acquisitions will add upwards of $135 million to Ryder’s supply chain solutions revenue in 2022.
“In addition to having a significant presence in a key geography, Midwest has built a proven model for multi-client warehousing and distribution — a capability that we’ve been targeting for some time,” Ryder’s supply chain president Steve Sensing reportedly stated. “We currently serve nine out of the top 10 U.S. food and beverage companies, and this acquisition enables us to offer those customers — as well as additional blue-chip customers in Midwest’s portfolio — even more capacity and greater flexibility.”
The decision of Ryder’s leadership team to expand its warehouse footprint comes on the heels of a report indicating the country is experiencing a significant shortage. A Prologis report highlighted that part of the supply chain bottlenecks can be attributed to U.S. warehouse space hovering a full capacity. The outfit’s Industrial Business Indicator demonstrated U.S. warehouse space is effectively sold out at only 3.9 percent vacancy nationwide. By the end of the 2021 third quarter, warehouse space usage doubled compared to the same period in 2020. Ryder’s wide-reaching space capacity positions the corporation to better serve its customers at a time when premium rates will likely drive profits.
“Multi-client warehouse environments are a great entry point for new customers looking for a 3PL that can meet their needs now and in the future,” Ryder vice president Darin Cooprider reportedly said. “As our customers’ businesses grow and evolve, we can seamlessly transition them from multi-client warehouses to dedicated facilities. We offer dedicated transportation solutions for guaranteed capacity and a robust transportation management offering which can help mitigate market fluctuations.”
Founded by James Ryder in 1933, Ryder Systems Inc. ranks among the country’s leading transportation and logistics organizations, employing approximately 40,000 people. The household name brand manages upwards of 235,000 commercial vehicles and more than 300 warehouses in the U.S., Canada, Mexico, and the U.K.
Ryder will reportedly maintain the Midwest Warehouse & Distribution System management team and keep the existing workforce in place. The purchase is expected to be completed by the end of November.
Sources: businesswire.com, ccjdigital.com
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