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If you want a fulfillment hub that can handle central and eastern Canada, Northern United States and East Coast distribution, then Toronto is a great choice. Toronto, Ontario is the largest market within Canada. This city also has a high population base (it is one of the highest populated cities in Canada) which is good for establishing a presence in the business world. Furthermore, Toronto is close enough to Eastern Canada, that is can serve as a legitimate distribution point for the Montreal market as well, capitalizing on multiple population centers within Canada. With ports along Lake Ontario, it also has extra shipping possibilities that other Canadian and U.S. cities don’t provide.
The Toronto region is filled with numerous fulfillment centers, though many of them only have websites and online reviews to tell you anything about them. This can become a problem because these warehouses all compete with one another. Bias often occurs in the statements made on their sites and in reviews. You’re going to need a more thorough vetting process to find out the truth. Nevertheless, it doesn’t hurt to look to see what’s initially available.
But location alone isn’t the only consideration when outsourcing 3PL, warehousing, fulfillment, and shipping in Toronto Canada. At WarehousingAndFulfillment.com, we specialize in painlessly matching you with the best fulfillment centers in Toronto Canada for your company’s specific needs. In addition to location, we match businesses based upon:
And performance metrics aren’t the only consideration we take into mind. We also match you with companies that are best suited for the products you sell, the channels you sell through, the technologies you use, and any other requirements necessary. Get in touch with your ideal matches today – fill out a request for quotes or call us for FREE matches and quotes!
With a population of 2.6 million, Toronto is at a thriving level as New York City. Because of this, you’ll likely have a lot of competition in getting a warehouse here. Even so, statistics show Toronto as the largest distribution hub in all of Canada.
This should give you incentive to try there first since you’re right near the U.S. border. Plus, you have access to 135 million people in the immediate area, something doubling the surrounding population in New York City.
Port Montreal nearby is a leader in importing goods to other countries, giving you access by ship to major markets around the globe. Plus, you have Pearson International Airport not far away for all your air cargo.
Toronto is Canada’s largest city and the center of many business operations in the country. With a population of over 6 million, the metropolitan area compares with the metropolitan area of Chicago. It is a key logistics center which attracts many large international businesses because it can serve 60% of the North American market population within a 12-hour drive of Toronto’s Pearson International Airport. That airport is Canada’s busiest, handling an estimated 56,000 metric tons of cargo a year.
Canada has a large and well-developed freight railway system. There are two major publically traded railway systems, Canadian National (CN) and Canadian Pacific (CP) railways. CN Rail is headquartered in Montreal Quebec with a major rail yard and hub in Toronto. The lines are connected throughout North America to the west coast of Canada with a major line running along the Mississippi River to New Orleans, Louisiana. CP Rail has its headquarters in Calgary, Alberta. However, the CP Rail’s Agincourt Yard, located in Toronto is one of the largest marshalling yards in Canada. CP freight lines extend from New York City, across the northern United States to the port of Vancouver.
In addition to its role as a truck, rail and air hub, Toronto is an inland seaport offering lake maritime vessel shipping westward across the Great Lake system to the Central United States and Eastward through the St. Lawrence Seaway to the Atlantic Ocean and beyond. Toronto is the biggest container port on the Great Lakes. Currently, ships up to 12,000 Twenty-foot equivalent units (TEUs) that can hold 12,000 20′ foot shipping containers are moving along Great Lake routes to intercontinental destinations from Toronto.
The 1989 Bi-national US-Canada Free Trade Agreement (FTA) and the 1994 Tri-national North American Free Trade Agreement (NAFTA) launched a dramatic integration of economic activity over the continent and Toronto as a logistics hub has been a major beneficiary.
The Toronto area includes 5 adjoining Ontario counties on the North West corner of Lake Ontario. Mississauga, a large suburban community is widely considered the logistics center of Canada.
There are approximately 40 major 3PL Warehouse Companies in the Toronto area, many of which operate chains of facilities across the country and provide trucking and transportation across the border into the United States and beyond. Many of the companies that operate out of Toronto are part of international 3PL operations with centers of operations all over the world.
One of the largest facilities is operated has 1,113 employees in 29 separate warehouse facilities. The company provides contract logistics: transportation management, retail fulfillment services, spare parts logistics services, and reverse logistics. It serves the healthcare industry, retail, and technology sectors over all of North America.
Another major 3PL warehouse provider located In Mississauga, Ontario operates a 96,000 square foot warehouse facility. The company offers customer service, delivery services, and large-scale order fulfillment as well as warehousing and inventory management services. The transportation service includes intermodal freight across truck, rail, air and lake maritime.
Pickering, Ontario, a Toronto metro area community is the home of a unique 3PL system that grew out of a health and beauty aid manufacturing business. It offers complete third-party logistics services specializing in pharmaceutical and medical products. The facilities are especially licensed by Health Canada to store and distribute drugs and natural health products as well as Class I and II medical devices. Shandex operates a state of the art electronic temperature and environmental monitoring system as well as real-time inventory tracking using RF technology. They offer racked and bulk climate controlled shipping, storage, cross docking, as well as kitting and assembly services.
Another advantage of Toronto is that it is close enough to the U.S. border that Canadian companies can reasonably ship product to close by U.S. cities for distribution of their products within the United States. For example, both northern New York (such as Buffalo) as well as Detroit, Michigan offer economical places to ship product into the states. In doing this, inbound freight costs into the U.S. are minimized and significant tariffs and fees can be reduced on shipping individual orders cross border.
If you can’t immediately find a warehouse in Toronto, it’s worth trying in other nearby big cities in Ontario that are just as important logistically.
As the third largest city in Ontario at over 700,000 people, you’ll be able to find many warehouses here giving you intermodal shipping options. Many of the best warehouses in Mississauga cover everything from air, truck, to ocean freight. They also help with more unique details related to warehousing like skidding, crating, shrink wrapping, and palletizing.
Another benefit to 3PLs in Mississauga is being near Highway 401, often called Ontario’s Main Street. It covers the entirety of Canada from coast to coast, including taking you into U.S. states. This highway is also one of the busiest in North America.
Other highways your warehouse can use for delivery include Highway 403, 409, 410, 427, Queen Elizabeth Way, and 407.
While a slightly lower population than Toronto, don’t discount Ottawa as an advantageous location for warehouses. The Port of Ottawa is top quality, including giving you a website letting you do container tracking, load calculating, logistic route planning, and figuring transit time.
A lot of warehouses in the Ottawa area have base connections to the U.S. for easy distribution there. Plus, you have the Trans-Canada Highway nearby, called Highway 417 through Ottawa. With this highway system, you can deliver across Canada and connect to major U.S. interstates.
The Toronto area, especially, is a place you can’t ignore since it’s not too far away if your business is in the U.S. east coast region. Thanks to Canada’s major strengths in road, rail, and water infrastructure, you truly connect your U.S. customers in a unique way. Even so, Ontario, Canada has numerous cities within itself, namely Toronto as the star city.
It’s worth exploring the possibilities with Toronto first, since it’s become a true leader in distribution. However, remember Ontario has other notable cities like Ottawa, and Mississauga as just a few. All of these have major populations to serve if you want to ship within Canada.
Choosing the best 3PL warehouse in Toronto is a complex decision. Below is summary information about Toronto population, number of warehouses, and taxes so that you can make a more informed decision about whether the state offers your company the best fulfillment services potential.
|Population||2.93 million (2021)|
|Warehouses in State||2440 (from reonomy)|
|Amazon Warehouses in State||6|
|Average Warehouse Labor Rate||$23/hr|
|Sales Tax Rate||13%|
|Property Tax Rate||2.16%|
|Personal Tax Rate||5.05-13.16%|
|Corporate Tax Rate||3.2-11.5%|
Some Canadian warehouses might have different policies from what you’re used to in America. That’s why you need to vet your Ontario warehouses as thoroughly as possible so you know what you’re getting into.
Here at WarehousingAndFulfillment.com, we want to introduce our Warehousing Companies site where you can get expert vetting through rigorous screening, impartial advice, and free services.
You’ll get multiple price quotes from the most established warehouses so you can make a smart decision to suit your business structure.
If you are looking for 3PL services for your business, consider Toronto. We can help. WarehousingAndFulfillment.com is the only site that rigorously screens 3PL companies to find the best match. Please contact us to learn more.
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