Why Amazon’s warehouse pullback is good news for contractors

A slowdown by Amazon is a boon for others in the warehouse sector, especially for procurement of materials, according to industry sources. As the e-commerce giant hits the brakes on expansion, that should translate to shorter lead times for currently scarce materials such as roofing components, roofing insulation, bar joists, precast and steel, said Tom Belanich, industrial director at Messer Construction, a Cincinnati-based general contractor. Other materials that might become more available include warehouse dock equipment, HVAC equipment and electrical equipment, said Belanich. Amazon was the largest builder of warehouses over the last three years, totaling $10 billion, or about 6% of the total construction activity, according to Dodge Data & Analytics. “With one of the big players in space allocation for distribution real estate in the U.S. slowing down, for some of us that’s actually good news,” said Smietana. “It’s going to eliminate some additional competition.”


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