Monday, February 6, 2023
FREEDOM TRUCK LINES
  • Home
  • Government
  • Business
  • Technology
  • Equipment
  • Safety
  • Fuel
  • Logistics
  • Autonomous
  • Trucker T-Shirts
No Result
View All Result
FREEDOM TRUCK LINES
No Result
View All Result
Home Logistics

The Future of Warehouse Building Is Urban

jarid.dispatch by jarid.dispatch
May 27, 2022
in Logistics
54 4
0
The Future of Warehouse Building Is Urban
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter


[Stay on top of transportation news: Get TTNews in your inbox.]

LONG BEACH, Calif. — Accelerating e-commerce purchases and continuing supply chain disruptions are reshaping the warehouse and distribution industry, driving up costs and creating robust demand for storage facilities in urban areas and near ports.

“The future of logistics real estate is urban,” Melinda McLaughlin, the senior vice president, global head of research at warehouse giant Prologis, said as the keynote speaker for the Metrans International Urban Freight Conference May 25-27.

Metrans, a joint partnership of the University of Southern California and California State University-Long Beach, studies how freight and goods movement affects urban areas.

With supply chains as volatile as ever, how will this shape demand for logistics real estate? Prologis’ Heather Belfor shares our latest outlook for the industry in 100 seconds: https://t.co/vM6qLdgdZH #cre pic.twitter.com/4g4cwOqovL

— Prologis (@Prologis) May 24, 2022

Competition for urban distribution space is increasing as retailers look to store inventory closer to consumers.

That helps shippers fulfill customer expectations of rapid delivery and also reduces emissions.

“If you are close to the residential populations, your van routes are much smaller,” McLaughlin said.

But urban rents are two to three times higher than those in peripheral locations.

Warehouse rents are soaring as customers compete for limited space, McLaughlin said.

Rents for warehouse and distribution space in Southern California have grown 60% to 70% in a year and a half.

“That is a huge change for our customers, and those costs get passed through to consumers,” McLaughlin said.

The push is fueled by growth in e-commerce spending.

Prologis expected e-commerce to grow at a 15% rate in 2019, but it jumped 20% as people redirected spending from services to goods during the COVID-19 pandemic.

“At some peak moments, the number was 30%. That’s a big change in what the supply chain needs to handle,” McLaughlin said.

Globally, consumer demand surged during the pandemic, but “the U.S. was the most extreme example,” she said.

“That demand came against a backdrop where it was harder than ever to bring a building online. We have not been able to respond as an industry because of the same supply chain disruptions that have affected our customers,” McLaughlin said.

Consumers powered large jumps in online sales of electronics, appliances, apparel, furniture, toys and entertainment goods. That, in turn, increased warehouse space demand.

“You need three times as much warehouse space to sell goods online. That’s because 100% of your goods are in the warehouse. There are no store shelves to put them on,” McLaughlin said.

E-commerce retailers also need more space because of how many items they stock and the depth of their inventory.

“A typical Walmart stocks about 150,000 items, but a Walmart.com warehouse has millions,” she said.

Prologis, which operates about 1 billion square feet of warehouse space globally, wants to develop more facilities in urban areas but has found that space is scarce and building expenses are soaring.

It now costs about $330 a square foot to acquire the land and build a warehouse in Southern California’s Inland Empire, east of the Los Angeles and Long Beach port complex. That is up from $141 in 2020, McLaughlin said. Even regions known for a friendly development environment are suffering from the same trend. Dallas’ land acquisition and warehouse building costs have jumped to $146 a square foot from $89 two years ago.

Port of Long Beach

Containerships moored off the ports of Los Angeles and Long Beach on Oct. 9. (Tim Rue/Bloomberg News)

According to McLaughlin, the freight and logistics industry is at a pivotal moment where it must revamp supply chains and become adept at working with shortages of labor, trucks and warehouse space.

There is “persistent disruption and it is going to continue,” even as the pandemic subsides, she said.

Extreme weather events like the recent Texas deep freeze and wildfires in California are one example of the ongoing challenges for the freight and logistics industry.

“Climate change is real … we are seeing more and more weather-related disasters every year,” McLaughlin said.

A Prologis analysis of weather-related events in recent years found that an increasing number are causing $1 billion or more of damage.

The labor shortage will continue as the workforce in both Western economies and China ages, she said.

“That has some pretty serious implications for production centers. It means the risk of not being able to find enough people, the risk of strikes and labor turmoil — all that is going up,” she said.

Geopolitical risks also are growing, as evidenced by the war in Ukraine and trade frictions with China.

McLaughlin said the industry needs to move to a more decentralized supply chain closer to both consumers and labor.

“It needs to be more flexible and more sustainable,” McLaughlin said.

The industry will have to digitize to take better advantage of data and technology to find efficiencies and solutions to problems. It will have to deploy automation to support and augment the human workforce in warehousing and logistics.

And, she said, it will have to deal with a continuing space shortage that growing development restrictions will hamper.

“There are fewer permits issued for logistics space around the world. That makes it hard to be responsive when you can’t bring space online in the places where it is needed the most,” McLaughlin said.





Source link

Related articles

Ready for the Future | Transport Topics

Ready for the Future | Transport Topics

February 4, 2023
January Hiring Burst Stuns Economists as Market Adds 517,000 Jobs

January Hiring Burst Stuns Economists as Market Adds 517,000 Jobs

February 4, 2023
Tags: BuildingfutureUrbanWarehouse
Share76Tweet47

Related Posts

Ready for the Future | Transport Topics

Ready for the Future | Transport Topics

by jarid.dispatch
February 4, 2023
0

tortoon/Getty Images As we embark on a new year, I’ve been grateful to learn about and chronicle several topics in...

January Hiring Burst Stuns Economists as Market Adds 517,000 Jobs

January Hiring Burst Stuns Economists as Market Adds 517,000 Jobs

by jarid.dispatch
February 4, 2023
0

A hiring sign is displayed at a Chipotle restaurant in Schaumburg, Ill. (Nam Y. Huh/Associated Press) WASHINGTON — For nearly...

Iowa Extends Overweight Limits for Agricultural Transport

Iowa Extends Overweight Limits for Agricultural Transport

by jarid.dispatch
February 3, 2023
0

ImagineGolf/Getty Images Iowa Gov. Kim Reynolds has extended through Feb. 19 the harvest time proclamation for weight limits and the...

House GOP Pursues Conservative Energy Agenda

House GOP Pursues Conservative Energy Agenda

by jarid.dispatch
February 3, 2023
0

Rep. John Curtis by curtis.house.gov The new House Republican majority recently launched its oversight agenda of the Biden administration’s energy...

TuSimple Says It Didn’t Share Tech With China-Linked Hydron

TuSimple Says It Didn’t Share Tech With China-Linked Hydron

by jarid.dispatch
February 2, 2023
0

A model truck atop a desktop computer monitor inside TuSimple headquarters in the La Jolla neighborhood of San Diego. (Bing...

Load More
  • Trending
  • Comments
  • Latest
Sean of the South: The Helpers

Sean of the South: The Helpers

October 1, 2022
Dry Van Report: Truckload faces headwinds as manufacturing activity slows

Dry Van Report: Truckload faces headwinds as manufacturing activity slows

April 18, 2022
Daimler Eyes Future Collaborations on Diesel Engines

Daimler Eyes Future Collaborations on Diesel Engines

October 1, 2022
Global Truck Mounted Cranes Market Size Is Expected to Reach US$ 3,769.7 Mn by 2032, Future Market Insights Inc.

Global Truck Mounted Cranes Market Size Is Expected to Reach US$ 3,769.7 Mn by 2032, Future Market Insights Inc.

August 25, 2022
Rivian’s EV Factory Constrained by Chip Shortage

Rivian’s EV Factory Constrained by Chip Shortage

0
NHTSA Opens Investigations Into Tesla Autopilot

NHTSA Opens Investigations Into Tesla Autopilot

0
After Removing 500 Containers, Ever Forward Moves Forward

After Removing 500 Containers, Ever Forward Moves Forward

0
Trucking Stakeholders Offer Advice, Caution on EPA Proposal

Trucking Stakeholders Offer Advice, Caution on EPA Proposal

0
Fending Off a Cyberattack | Transport Topics

Fending Off a Cyberattack | Transport Topics

February 4, 2023
Brakes, Telematics Center Stage at Upcoming TMC Annual Meeting

Brakes, Telematics Center Stage at Upcoming TMC Annual Meeting

February 4, 2023
Nissan Technicians Can Vote on Union, NLRB Rules

Nissan Technicians Can Vote on Union, NLRB Rules

February 4, 2023
Ready for the Future | Transport Topics

Ready for the Future | Transport Topics

February 4, 2023

Recent News

Fending Off a Cyberattack | Transport Topics

Fending Off a Cyberattack | Transport Topics

February 4, 2023
Brakes, Telematics Center Stage at Upcoming TMC Annual Meeting

Brakes, Telematics Center Stage at Upcoming TMC Annual Meeting

February 4, 2023
Nissan Technicians Can Vote on Union, NLRB Rules

Nissan Technicians Can Vote on Union, NLRB Rules

February 4, 2023

Categories

  • Autonomous
  • Blog
  • Business
  • Equipment
  • Government
  • Logistics
  • Safety
  • Technology

Follow Us

Find Via Tags

Analytics Autonomous Bill Billion business Car chain County Crash DAT demand Diesel Driver drivers Electric Fire food Ford Freight Fuel future Gas Growth Hydrogen Industry Logistics Market million News pickup Port Prices Report Reports Safety Sales supply Technology Tesla Transport Transportation Truck Trucking trucks vehicles

© 2021 Freedom Truck Lines

No Result
View All Result
  • Home
  • Government
  • Business
  • Technology
  • Equipment
  • Safety
  • Fuel
  • Logistics
  • Autonomous
  • Trucker T-Shirts

© 2021 Freedom Truck Lines

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In