Large differences in warehousing cost in Europe

Based on our warehousing benchmark we can conclude that the warehousing costs in Europe vary greatly. We processed our data set of 2010 and 2011 and concluded that the differences are enormous. The overall cost (measured in total cost / m2) in Europe show a wide range that is caused by differences in labor costs, rental, equipment and productivity.

Interestingly enough our findings do not always follow the statistics that are available on warehousing and office rent. In the figure presented above we present the map that we constructed based on our warehouse benchmark and network design projects. Next to our own data set of approximately 850 locations we used the DB Central Europe information, Labor Costs and Earnings survey, Bureau of Labor Statistics and the Enterprise Eurostat data.

The differences between regions in Europe are enormous. The lowest cost are 63%  below average. The highest are just about 56% above the average region in Europe (measured in EUR/square meter). However it gets even more complicated. Inside regions there are also enormous differences. Just to illustrate this effect we depicted the data we collected inside a Dutch region (Rotterdam Area called Rijnmond).

During the last two years we were able to collect quite an extensive data set in which the warehousing cost in terms of rental, office space, labor costs, insurance, and total warehousing costs are included. We collect this data through our warehouse benchmark, that is about to start again for 2012 and our network design project (see logistics network design).

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