Shippers Should Rebid Warehousing Contracts for Savings

As warehousing labor costs stabilize, shippers should benchmark pricing to shed premiums paid during the pandemic.

Updated on Oct. 15, 2026 in Transportation

Isometric editorial illustration showing a monolithic corrugated steel warehouse container, representing corporate industrial infrastructure and logistics. — Shippers are urged to rebid warehousing contracts to shed pandemic-era premiums, as labor wage growth stabilizes at new market levels. AI Illustration. Upload story photo >

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Armstrong and Associates reports that U.S. value-added warehousing and distribution gross revenue reached $72.7 billion in 2025, marking a 4.4% increase. Shippers are now being advised to rebid contracts signed during the post-pandemic peak to better align with current market rates.

Why it matters

As warehousing labor wages have stabilized at a higher permanent cost base, operators must re-evaluate their logistics spend to avoid overpaying for services. Proactive rebidding allows businesses to reset contract terms to match current market conditions rather than pandemic-era premiums.

The 2025 value-added warehousing segment hit $72.7 billion in gross revenue, a 4.4% increase, with projections indicating a rise to $75.2 billion in 2026. This sector remains the largest third-party logistics category by net revenue, driven heavily by nearshoring activity.

The players

Armstrong and Associates

A research and consulting firm specializing in third-party logistics market analysis and data.

The details

Growth in the warehousing sector is sustained by corporate investments in nearshoring and deliberate buffer-stock builds. While revenue continues to climb, the industry is adjusting to a new, elevated floor for labor wages that replaced lower pre-pandemic cost structures. Experts recommend that shippers demand comparable bids from multiple providers and begin benchmarking pricing several months before their specific contract renewal windows.

2025: U.S. warehousing and distribution gross revenue increased by 4.4%.
June 2026: Armstrong and Associates released the market analysis report.
2026: Warehousing gross revenue is projected to reach $75.2 billion.

Market Landscape

This development marks a transition from the reactive, high-cost warehouse expansion era following the post-pandemic supply chain buffer-stock buildup. It signals that the logistics market is shifting toward a cycle of cost-management and contract optimization.

Operators holding warehousing contracts established during the pandemic should audit their current rates against the broader market. Consider initiating a competitive bidding process well in advance of upcoming renewals to capitalize on more recent cost-base stability.

The takeaway

The sector has hit a more permanent, high-cost labor equilibrium that demands active oversight of logistics contracts. Operators should track their warehousing spend against the $75.2 billion industry projection for 2026 to ensure their cost structure remains competitive.