Warehouse Utilization Rebounds after Coronavirus-Induced Contraction
After almost a year of being tossed around by Covid-19, the logistics real estate market is getting back to normal, with many sectors experiencing surging demand for space. According to the latest Industrial Business Indicator (IBI) report from global real estate firm Prologis, data suggests that the industry is rebounding nicely in Q3 2020 after a volatile second quarter.
Increased demand for warehouse space is driving the resurgence, and researchers suggest that the current expansion is expected to continue. The majority of the logistics real estate customer base leans toward basic daily needs and structural trends like e-commerce. Many of these essential goods providers and operations did more than simply continue to function during the height of the national lockdown phase of the pandemic. Many actually thrived. Customer leasing activity saw significant increases during the quarter, as customers began to better understand how the pandemic would affect their businesses.
It’s not all good news, however. Even though demand is increasing as the industry comes to grips with how to thrive during the pandemic, space could become a problem. Because construction of new warehousing space actually slowed during the early to mid stages of the pandemic, there is a likelihood of a shortage of quality distribution space in the coming months and into 2021. The combination of an increase in the demand for space and a supply pipeline unable to keep up with demand could lead to a critical shortage of space. Companies desiring new or increased warehousing facilities will need to act decisively to ensure they have the physical space they need in the near future.
Mountain Leverage is happy to provide this educational content regarding trends surrounding the surge in demand for warehouse space as the industry comes to grips with life during a global pandemic. As companies seek to acquire quality warehouse space in non traditional locations, and have those buildings up and performing at a high level as quickly as possible, voice-enabled picking technology may be the best consideration.
Benefits of Voice Picking over other technologies:
- Reduces training time by 85%
- Increases productivity more than 30%
- Corrects up to 80% of picking errors
- Achieves 99.99% order accuracy rates