E-commerce signals a rise in warehouse demand

Improve efficiency to stay competitive.

Improve efficiency to stay competitive.

Due to the rise of e-commerce, warehouse managers have found themselves scrambling for talent, material handling equipment, and software to keep operations efficient and addressing an increasingly on-demand consumer market. Space issues are also a concern for many, with warehouse shelves being stacked to the brim but still needing to reach customers quick.

Material Handling and Logistics reports that e-commerce is responsible for demand in the warehouse real estate market. Because there has been such a push to occupy more warehouse space, real estate dealers in the warehouse sector have been able to test how much tenants are willing to pay and trying to understand their capacity needs.

One of the biggest real estate wars is over location, as companies are trying to be on the outskirts of dense markets in order to offer reliable and fast delivery service. This is causing prices to go up while the amount of available land is closing in.

Logistics Management reports when managers are eyeing new warehouses for their business, they’re aiming to be as flexible as possible. In order to fulfill customers’ needs on an on-demand basis, flexibility is key to staying competitive in the market and keeping consumers happy and loyal.

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