Friday, August 8, 2025
3PL Spotlight: August 2025
August is Here!
This month, we’re looking at some of the biggest changes and conversations happening across logistics and supply chain. From rising warehouse vacancies and freight market updates to leadership transitions and accessible automation, we’ve gathered key stories that reflect where the industry is headed. Whether you're running a 3PL or partnering with one, these insights offer a helpful pulse on what to watch—and how to stay ahead.
In this spotlight you can expect:
Cold Storage Growth
Choosing the Right 3PL
Warehouse Real Estate Shift
Unpacking Union Impacts
Freight Market Pulse
AI in Logistics
3PL Site Strategy
Where to Be in 2025
Amazon & Automation
Racking 101
Amazon FBA changes
Trailer Loading Tech
Family Business
Webinar
X-Change Board
Refrigerated Warehousing & Storage Market Outlook
The global refrigerated warehousing market is expected to grow from $182.2 billion in 2025 to $426.1 billion by 2034. Growth is fueled by demand for cold food and pharmaceutical storage, especially in emerging markets. Key innovations include automation, IoT tracking, and eco-friendly refrigeration systems. Asia-Pacific is leading expansion, while North America and Europe continue to modernize. The report also highlights competitive strategies and future investment opportunities across the sector.
Choosing the Right 3PL Partner
Stephen Fife outlines six essential traits to look for when selecting a logistics partner. Industry expertise tops the list, emphasizing the need for a 3PL that understands your sector’s specific challenges. Comprehensive services and advanced technology ensure seamless operations and transparency. Financial stability adds long-term security, while scalability and flexibility support growth and shifting needs. This piece offers a focused roadmap for making confident, strategic 3PL decisions.
Warehouse Vacancies Climb to Highest Level in More Than a Decade
U.S. warehouse vacancy rates rose to 7.1% in Q2 2025, the highest level since 2014. A slowdown in demand and lingering overcapacity have caused tenants to delay leasing decisions and offload excess space. Subleasing hit a record high, while new construction dropped by about 45% year-over-year. Despite more available space, average rents continued to climb due to long-term lease structures and tenant quality. The market is entering a more cautious, recalibrated phase after years of aggressive growth.
The Mixed Impact of Union Wins at UPS
UPS recently granted major concessions to the Teamsters union, including pay increases for some drivers up to $170,000 annually. While union leaders celebrated the deal as a major win for workers, the aftermath tells a more complex story. Over 20,000 UPS jobs were cut following the agreement, raising questions about long-term consequences. Critics argue that inflated wages may come at the cost of broader employment. The case reignites debate over the role and relevance of unions in today’s economy.
AI in Logistics: Already Here, Just Not Evenly Distributed
A recent survey of supply chain executives reveals that while AI is already embedded in many logistics systems, advanced tools like generative AI are still in early stages of use. Only 12% of leaders feel very familiar with AI-powered freight tech, and many remain skeptical or uninformed. Key drivers for broader adoption include clear ROI, seamless integration, and proven use cases. Larger shippers are leading the charge, while smaller firms lag due to limited resources and awareness. The article highlights a growing divide between those leveraging AI and those left behind.
Know Your Enemy, Yourself — and the Perfect 3PL Locations
Jim Tompkins draws from Sun Tzu’s wisdom—“know your enemy and yourself”—to guide smarter 3PL placement strategy. He highlights how manufacturing shifts driven by initiatives like the CHIPS Act and reshoring trends have created seven emerging U.S. industrial hubs. The article urges logistics leaders to align 3PL location decisions with those growth centers, particularly in sectors like semiconductors, high-tech, pharma, and infrastructure. Getting this wrong can add cost and delay; knowing your own supply chain limits and target markets ensures better alignment. It’s a strategic framework rooted in understanding external risk and internal capability to improve 3PL deployment decisions in 2025 and beyond.
U.S. Manufacturing Megaprojects Map
This map tracks $560B in active U.S. industrial projects and over 165,000 new jobs. With major builds in chips, EVs, and pharma, it reveals prime growth zones. For 3PLs, it’s a clear signal: follow the capital, and opportunity follows.
Amazon Reaches 1 Million Robots, Powered by AI
Amazon has deployed over one million warehouse robots across more than 300 fulfillment centers. A new AI system called DeepFleet— a generative foundation model—coordinates those robots, boosting travel efficiency by about 10%. This automation has enabled Amazon to slow hiring, reduce entry-level roles, and shift job demand toward technical fields like engineering and systems support. While Amazon highlights upskilling efforts (700,000 employees trained), critics warn the efficiency gains could displace many lower-skilled positions. The development marks a critical turning point in logistics, where AI and robotics are reshaping both operations and the workforce landscape.
Understanding Racking Options
Choosing the optimal racking system is foundational to warehouse efficiency, safety, and storage density. OPSdesign highlights essentials like selective pallet racking for versatile access, high-density options such as drive‑in/drive‑through, push‑back, and pallet flow systems, plus mobile rack setups. The right configuration depends on factors like load type, turnover rate, floor space, and product rotation strategy. Adjustable heights, safety netting, and compliance features can also greatly improve flexibility and worker safety. Thoughtful design aligns storage design with operations for improved logistics throughput.
Amazon Will End FBA Prep & Labeling Services (2026 Onward)
Amazon announced it will completely phase out all seller prep and labeling services within the U.S. Fulfillment by Amazon program starting January 1, 2026. The decision follows improvements in seller packaging capabilities and shifts prep responsibilities entirely off Amazon. For many small and mid-sized businesses that lacked in-house warehousing, this marks a major operational change. Sellers will now need to handle prep and labeling themselves or partner with third-party service providers. The move reflects Amazon’s broader push to streamline fulfillment operations and reduce internal workload.
Making Trailer Loading Automation More Accessible
Automated trailer loading is becoming more feasible for mid-sized operators thanks to new modular, cost-effective systems. These bolt-on solutions require no trailer modifications and can load a truck in just six minutes. With lower upfront investment and ROI in as little as 13 months, they offer a practical path to automation. Benefits include faster throughput, better safety, and consistent performance across shifts. For 3PLs, it's a smart way to reduce labor pressure and boost efficiency.
$40B Real Estate Tycoon Prepares Heir by Avoiding Nepotism
Jorge Pérez, CEO of Related Group, made his son earn an MBA and spend over a decade working outside the family business, climbing through ranks for 13 years before taking on leadership. The intent was clear: protect the company’s reputation and ensure his son’s credibility by proving his merit—with temporary roles under outside bosses and in different markets. Entry into the family business was earned, not given, reinforcing a merit-based culture within a massive real estate empire. The executive succession model was built on discipline, experience, education, and independence. Now, both his sons jointly lead the company, stepping into roles they earned through hard work and external validation
UPCOMING WEBINARS
Freight Market Trends: U.S. Bank Q2 2025 Index Breakdown
Supply Chain Now hosts a timely webinar unpacking the U.S. Bank Q2 Freight Payment Index with insights from industry experts. Bobby Holland and ATA’s Chief Economist Robert Costello join Scott Luton and Karin Bursa to break down shipment volumes, freight spend, and economic pressures. The session will highlight key regional shifts and their impact on supply chain planning. Attendees will walk away with actionable data and forecasts to navigate today’s freight market. It’s a must-watch for anyone looking to sharpen their logistics strategy.
What Is a Family Constitution (And Why Every Family Business Needs One)
Join FBCG on Thursday, August 21 at 12:00 PM ET / 11:00 AM CT / 9:00 AM PT for this one-hour webinar led by Christopher Eckrich, Dana Telford, and Justin Albertson. You’ll learn why having a formal family constitution is essential for preserving unity, governance, and legacy across generations. Discover six foundational elements that every successful family constitution should include, from employment policies to succession and conflict resolution frameworks. The session will also explore the top ten common agreements families implement—and how to create one that’s practical and meaningful. Whether you’re formalizing governance for the first time or refining existing frameworks, this webinar offers tools to help your family business thrive.
The X-Change Board
If any of these listings interest you or you'd like more information, please reach out to Chris Kane at chriskane@3pl-rx.com or call 570-357-7788.
Candidate Available - Transportation Leader
An experienced transportation executive with a strong financial background. A results-driven leader ready to take on their next challenge in managing and expanding a 350-truck operation.
Candidate Available - Senior VP of Business Development
A Vice President of Business Development with a strong background in logistics and supply chain sales. This ideal candidate has previously worked with both global and nationally recognized family-owned 3PL providers, bringing deep industry knowledge, a vast network, and a results-driven approach.
