Rock River Valley logistics sector grows most since slump s end
Post on: 2011-09-05 By: admin
ROCKFORD — The business of storing stuff and moving it from point A to point B has been an employment winner for the region since the end of the Great Recession.
The logistics industry — technically known as the trade, transportation and utilities sector — has seen the biggest percentage gain in jobs since the recession officially ended in July 2009. Since that time, 1,200 positions have been added, representing an 18 percent jump. Companies in that sector in Boone and Winnebago counties employed 7,700 people in July, according to the Illinois Department of Employment Security.
The industry is closely tied to the nation’s manufacturing output, which has been on a slow but steady increase, said Mark Podemski, vice president for development at the Rockford Area Economic Development Council.
“We transport a lot of equipment in trucking, and a lot of what gets made here gets moved somewhere else,” he said. “We’re shipping over a larger area and to more regions than many places.”
The industry has been showing continued strength nationwide, according to a report by commercial real estate firm GrubbEllis. According to the report, the logistics market has seen declining vacancy rates in warehouses across the country, a sign of increased production by the nation’s manufacturers. Through the first half of 2010, 32.7 million square feet of net warehousing space was occupied by goods and materials, an increase not seen since 2007.
But an uncertain economy means the forecast for the rest of the year is uncertain. According to the GrubbEllis report, companies are delaying their decisions on production, which will slow the rate at which warehouse space is filled.
“Unless demand turns outright negative, vacancy rates will continue to decline,” the report says. “Declining vacancies, in turn, will give landlords some pricing power, which is already evident in certain” markets.
Reach staff writer Sean F. Driscoll at 815-987-1346 or sdriscoll@rrstar.com.
Copyright 2011 Rockford Register Star. Some rights reserved
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