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New research on the future of industrial property

New research affecting warehouses, logistics and supply chain from prominent e-commerce businesses and retailers such as The Iconic, Catch.com.au, Nike and Priceline has been released.

Colliers International have launched “The Industrial Property of the Future”; examining the emerging technologies which are redefining how warehouses operate and all elements of industrial property.

Design, automation, social media, geography, data, digitisation and co-warehousing are just some of the factors shaping warehouses today, helping supply chains to become more flexible responsive to changes to consumption patterns.

Malcom Tyson, Managing Director, Industrial at Colliers International said e-commerce has risen exponentially in the last few weeks as a result of the COVID-19 pandemic and this has had an incredible impact on the industrial sector.

“Today, we are on the cusp of the Industrial Revolution 4.0 and are witnessing how technology has created a new kind of consumer which impacts every single aspect of industrial property and the supply chain, subsequently resulting in an unprecedented shift in the way businesses operate,” he said.

“With the majority of bricks and mortar stores closed or operating differently under COVID-19 restrictions, eCommerce is becoming more important for businesses to thrive.”

Monica Velez, National Director, Logistics and Supply Chain, said technology has radically evolved the expectations and behaviours of Australian consumers over the past 10-15 years, giving rise to a new generation of shoppers who need to access the services and products they need, all from home.

“This new generation of consumers desire immersive brand experiences and virtual but enhanced interaction with retailers, which have profound implications for and effects on the entire value chain,” she said.

Monica said consumers are increasingly moving towards a digitised world and the recent pandemic event has seen more Australian households than ever shopping online.

“Given the strong up-take for online shopping, Australia Post predict that e-commerce penetration will reach 12% of retail spend within the next three years,

“Unsurprisingly, social media and influencers are drastically changing the way in which consumers – particularly younger people – shop, with retailers leveraging shoppable tags on photos and in-app payments. This means purchasing a product is now just one click away, 24/7 with buy now pay later services like AfterPay further enabling regular non-discretionary purchases.”

This new consumer and new ways of purchasing means that eCommerce volumes have increase exponentially, and as such, warehouse design has advanced.

Tim Edwards, National Director, Project Leaders said while the fundamentals of industrial buildings, such as generic layouts, floor loads, and building heights, haven’t greatly evolved, the design of these warehouses and distribution centres are becoming increasingly bespoke around storage and operational solutions.”

“The design and operational functionality of new industrial buildings is now completely tailored to suit the supply chain requirements of an individual organisation as well as its technology and customer requirements,” he said.

“This is most prominent in the implementation of technology solutions, robotics and automation in industrial assets. The supply chain operations will differ from product to product, such as food distribution and fashion, however the design of industrial assets will be focused on maximising the efficiency of these operations and delivering convenience for the consumer,

“New businesses will have to consider many design elements such as; access for varied transportation vehicles; changes to staff and workforce operating within the facility and the ability to offer integrated high-quality technology and digital solutions, to name just a few.”

The Industrial Property of the Future Whitepaper explores all factors affecting warehouses, logistics and supply chain; delivery medium, such as drones, automation, predictive analytics, racking, reverse logistics, warehouse location and geography, current technologies and emerging.

The Industrial Property of the Future White Paper is accompanied by a companion podcast series which can be accessed here: https://www.colliers.com.au/en-AU/Countries/Australia/podcasts

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