The Vital Role of Warehousing in Toronto's Supply Chain & Economy

Warehousing is a cornerstone of Toronto's supply chain infrastructure, while also playing a pivotal role in the city's economic vitality.

As a central hub for commerce and industry, Toronto relies on efficient warehousing to manage the storage and distribution of goods, ensuring that products move seamlessly from manufacturers to consumers. This logistical support is essential for maintaining the flow of trade and meeting the demands of a growing population.

Warehousing Growth, Economic Impact, and Employment Impact

The significance of warehousing in Toronto has been underscored by recent developments. In 2023, Toronto accounted for more than one-third of all industrial and logistics real estate under construction in Canada, highlighting the city's strategic importance in national supply chains.

This expansion reflects the increasing demand for storage solutions, driven by factors such as the rise of e-commerce and the need for businesses to maintain robust inventories. Additionally, the net absorption of industrial real estate in Toronto was close to 4.3 million square feet in 2023, indicating a strong uptake of warehouse space.

Beyond just the amount of warehousing that is spreading across Toronto, the transportation and warehousing sector is a major employer in Ontario, with 385,100 individuals working in the industry in 2022, representing 5% of the province's workforce.

Employment in this sector increased by 3.3% in 2022, and projections indicate moderate growth over the 2023-2025 period, supported by large public sector investments in transit planning and the construction of new warehousing facilities. Notably, employment in transportation and warehousing rose by 19,000 (+1.8%) in September 2023, contributing significantly to the province's economic resilience.

In summary, warehousing is a vital component of Toronto's supply chain and economic framework. The continuous growth and investment in this sector not only enhances the efficiency of goods movement but also bolster the city's economic resilience and capacity to meet future challenges.

As market leaders in e-commerce order fulfillment, co-packing, transportation, and 3PL warehousing services within Toronto, we leverage our specialized expertise in the distribution industry. Our clientele spans across a multitude of industries, boasting some of the globe’s most renowned companies.