Indicating why it has planned an expansion, GXO’s has referred Germany’s contract logistics market. It estimates the market at $20 billion in annual revenue, and adds that it is expected to grow rapidly due to the ongoing modernization of supply chains, acceleration of nearshoring, and increasing demand from companies to outsource to reduce costs, improve efficiency and deliver a best-in-class consumer experience.
Commenting on the announcement, Richard Cawston, GXO’s President, Europe, said:
“One of the many benefits of our acquisition of Clipper was growing our presence in Germany. We are very excited by the significant growth opportunities in this highly attractive market. Our expansion brings to the market a new approach, new energy, as well as offering greater choice than traditional logistics providers. We’re seeing increasing demand to partner with GXO from existing and new customers in ecommerce, fashion, and consumer technology, because of our agility, unique capabilities and tech expertise.”
Stefan Van Hoof, GXO’s Managing Director of Central Europe, added:
“I’m looking forward to leveraging GXO’s best-in-class technologies and customer-centricity to shake up the logistics landscape and rapidly grow our operations in Germany. Our bespoke offering and cutting-edge technology clearly differentiate GXO in the market and make us an ideal partner for customers looking to evolve and modernize their logistics and warehousing solutions.”
According to GXO, the new site will target a DGNB Gold Certification and include a range of energy efficient features. GXO is expecting to employ up to 400 team members at full capacity and will implement automation and adaptive technology like goods-to-person and autonomous mobile robots on site based on customer requirements.