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This year, more warehouses are operating at or beyond capacity than ever before—with 20% indicating they are operating beyond 100%, increasing from 15% in 2021. Nearly 40% of warehouses cited running at 90% – 99% capacity, highlighting the responses referenced earlier that finding warehouse space will continue to be a challenge in 2023. Survey respondents who keep their warehouse at between 80% and 99% capacity are more likely to experience medium to high order volume growth, 1.5x more than those who keep them less than 80% capacity, and 1.15x more than those who keep them at more than 100% capacity. With nearly 60% of warehouses utilizing more than 90% of their space and another 28% running between 80%-89%, significant risk exists for 3PLs to keep up with customer growth and inventory levels. Once warehouses reach 80%–85% space utilization, many find that efficiency drops with movement and storage. This also indicates a level beyond where some 3PLs might struggle with adding new Best Practice: Evaluate slow-moving inventory. 3PLs can increase revenue customers or managing seasonal fluctuations. and persuade customers to reduce stock of slow-moving inventory by pricing long-term storage at a higher rate, thereby preserving valuable space in the warehouse.

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