Three over-arching trends point to labor availability as one of the most critical elements for continued growth of the industrial & logistics (I&L) sector: e-commerce growth, a shrinking skilled workforce and rising wages.

Overall, T&W employment in 37 top U.S. industrial markets grew by 17% between 2013 and 2017, outpacing the national average of 12.8%. Median hourly T&W wages in these markets rose by 9.6% over the same period, compared to 11.3% nationally and 7.4% for all U.S. occupations.

I&L markets with the highest T&W employment growth from 2013 to 2017 include Charlotte (56.8%), Inland Empire (46.8%), Central Valley (45.7%), Reno (44.4%) and New Jersey (39.3%).

All of these aforementioned markets have seen a surge in I&L demand, averaging approximately 38 million sq. ft. in positive absorption and 33% growth in asking rents from 2013 to 2017.

Median hourly wages for T&W occupations rose the most in regional and emerging hubs, notably Central Valley, (17.5%), Milwaukee (17.0%), Greenville (15.0%), San Antonio (14.3%) and Kansas City (14.3%). All outpaced the overall wage growth in their markets.

Our analysis indicates that the markets with the highest labor supply and balance of affordability include the larger markets of Atlanta and Dallas/Ft. Worth and the smaller markets of Memphis, Indianapolis and Louisville.