Warehouse Space: some have it-some need it
REPOST: David M Levitt, Bloomberg.com
The rising cost for limited warehouse space is a continuing challenge in the supply chain. A new report (seen above) lists ten U.S. cities that may be most ready to capitalize on the situation. In the table, Phoenix scores the best vacancy rate- still only at 8%. South Florida and Stockton, CA both enjoy an enviable situation with over 6M square feet currently under construction.
Back in a November post, we explored the growth of vertical development in certain real estate markets. Decision makers seek flexible technology solutions such as voice workflows to gain efficiencies in place of expansion or or move. This high demand for industrial real estate is expected to continue – supported by online shopping and the strong economic conditions- and as such, other new options are “popping up.”
Efforts to Match Demand to Capacity:
Companies looking to lower costs while quickly fulfilling their online orders are turning to seasonal or single event pop-up warehouses. Some options are semi-permanent warehousing and can serve to more quickly satisfy certain growing markets or key urban locations. And the pressing demand for workable last-mile logistics solutions is also a driver. There are clear similarities between the on-demand warehouse space and the well known providers in the gig economy such as Uber and Airbnb. All providers aim to efficiently match demand to capacity.
Industrial real estate firms strive to match owners of excess warehouse space with users or retail shippers that need it on a short term basis. The strong growth in ecommerce further challenges the historic warehousing model. This is caused by the need for 3 or even 4 times the warehouse space to assure quick access and handle the reality of increased SKU counts. Blending of technologies is being employed in these new and evolving warehousing space solutions. But the picking of products is still done mainly by human pickers. And in these situations, voice picking can boost both productivity and accuracy by 20% or more.
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