U.S. Manufacturers Struggle with Outdated Warehouse Networks

The report, which gathered insights from 306 supply chain and logistics executives, highlights a widening gap between current operational needs and historical capital investments. Paul Simmons, President at WSI, noted that companies previously prioritizing cost-cutting over network resilience are now discovering that such models are prone to failure under modern market pressures. The data suggests that optimization alone is no longer sufficient to overcome deep-seated structural inefficiencies.

Nearly 90% of respondents anticipate significant changes to their distribution footprint within the next 18 months, ranging from consolidation to fundamental shifts in operating models. This urgency is compounded by rising friction with third-party logistics providers, as 67% of firms report an increased willingness to switch partners. Furthermore, the volatility of modern supply chains is exposing compliance weaknesses, with over half of the surveyed companies reporting a safety event, audit finding, or compliance incident within the last two years. As Jesse Jones, VP of Operations at WSI, emphasized, the ability to navigate these audits depends entirely on maintaining rigorous documentation long before a crisis occurs.