Supply chain management company CEVA Logistics has signed a four-year lease at the Calibre industrial development – owned by property group Mirvac – at Eastern Creek, New South Wales.
Construction of the building CEVA will occupy has yet to complete, though it will consist of approximately 18,000sqm of warehouse and 1,000 metres of office space, allowing CEVA to consolidate three existing warehouse operations from different locations into one.
“As a world leading supply chain management company, CEVA will benefit from Calibre’s unmatched transport links. At the nexus of the M4 and M7 motorways, the site has a dedicated multi-directional signalised intersection connecting to major transport links,” said Stuart Penklis, Mirvac’s Group Executive, Industrial.
“The advanced specification of the facility sets a new standard of quality and amenity for industrial estates in Australia, whilst delivering long-term efficiency and flexibility for CEVA,” he added.
Penklis said that the state government investment in infrastructure is drawing large-scale users to Western Sydney.
“The upgrade of the M5 Motorway and WestConnex has stimulated demand as it will improve access and connections between Western Sydney, Port Botany and Sydney CBD. Calibre is ideally placed adjacent to the motorway, catering for logistics and manufacturing occupiers looking to benefit from this investment in infrastructure.” Carlos Velez Rodriguez, Managing Director Australia and New Zealand, CEVA, said, “We’re very pleased to have secured the first facility at this new premium logistics hub. Calibre raises the bar for contemporary industrial estates, and the quality and design make it an exceptional opportunity to have secured.
“This transaction allows us to consolidate from different locations across the state, creating a huge value proposition and bottom line efficiencies. Against the back drop of high demand for industrial sites in Sydney’s west, Calibre’s prime location makes it an unmatched opportunity.”
The Handheld Group, manufacturer of tough mobile computers, handhelds and tablets, has announced a new product to join its range – the Algiz 8X tablet.
The Algiz 8X offers communication features such as LTE and dual-band WLAN, along with an eight-inch ultra-bright chemically strengthened projective capacitive touchscreen built for outdoor use. With glove mode or rain mode enable, the tablet can operate in changing weather.
Handheld reports that the ‘compact’ and ‘rugged’ Algiz 8X has been put through exhaustive testing, including an impact test in which a 64-gram steel ball was dropped on the screen 10 times from a height of 1.2 metres.
“We’ve pushed the limits of modern field technology with this product, fulfilling customers’ needs for powerful computing, mobility, outstanding screen performance and battery life. We made no compromises,” said Johan Hed, Director of Product Management at Handheld.
The Algiz 8X comes standard with Windows 10 Enterprise LTSB, and an optional active capacitive stylus. LAN port, COM port and barcode scanner options are available and custom features and electronics can be added using a ‘backpack’ system.
The Algiz 8X is available from March.
The warehouse management system (WMS) market size will reach US$3,112 million ($4.2 billion) by 2022, growing at a CAGR of 15.2% from 2016 to 2022, according to a new report published by Allied Market Research. The growth is expected to come as a result of the increase in inventory and workload of WMS in warehouse operations, and Europe is expected to be the largest market during the forecast period.
The report, ‘Global Warehouse Management System Market by Component Type, Industry Vertical, and Geography—Global Opportunity Analysis and Industry Forecasts, 2014–2022’, found that among the various industry verticals, transportation & logistics is projected to dominate the market, however pharmaceuticals industry is expected to have the fastest growth rate.
“The European market is most productive as compared to others with diverse industry verticals implementing WMS at a greater extent. Furthermore, it is projected to generate the highest market revenue over the forecast period with predominant deployments in the transportation & logistics industry” said Seapee Bajaj, Lead Analyst, Construction & Manufacturing at AMR.
Asia-Pacific is estimated to grow fastest due to increase in the adoption of WMS services and extensive growth in Japan, China, Australia, and India.
Amazon leased seven million square feet of warehouse space in the UK in 2016, 19 per cent of the region’s total letting for the year until mid December. Real estate consultancy Gerald Eve’s Prime Logistics report analyses the UK’s 50,000+ sq ft warehouse market. Amazon’s dominance was particularly pronounced, it found, during Q3 2016, when Amazon took 3.4 million sq ft of new space, a quarter of the 13.8 million sq ft of total lettings.
“For one company to be responsible for a fifth of all lettings is remarkable – all the more so given Q3 saw the highest-ever quarterly take-up, putting 2016 on course to be the strongest year for the industrial occupier market we have recorded,” said Richard Ludlow, partner at Gerald Eve. “Despite the uncertainty created by the Brexit vote in June, occupier demand for warehouse space remains strong, and it is online retailers such as Amazon that are underpinning this interest. The strength of this demand highlights just how robust the sector’s future prospects are.”
McCain Foods Australia today announced a contract agreement with cold storage provider NewCold.
NewCold’s will manage the storage and handling of McCain’s frozen products at the storage provider’s new warehouse in Truganina, Melbourne, as part of a 10-year agreement commencing in July 2017.
Construction has significantly advanced on the automated facility, which will consist of an integrated system combining automated, state-of-the-art pallet handling systems, using in-house warehouse and control software developed by parent Dutch cold storage innovator, NewCold Advanced Cold Logistics.
Taso Kourou, Supply Chain Director at McCain Foods ANZ stated that the facility upgrade will drastically improve logistics capabilities, meeting the needs of local and international customers, demanding improved efficiency from production to distribution of frozen products. “The storage and handling of McCain’s frozen products in the new automated facility will give us a more stable temperature regime and highly accurate stock control,” he said.
Louis Wolthers, Regional President for Australia, New Zealand, South Africa, India & China at McCain Food said that the McCain team is keen to see the outcomes of the new agreement take effect. “From a sustainability perspective, through the use of the warehouses’ highly controlled in-and-outflows combined with efficient cooling equipment, energy usage per pallet stored is up to 50 per cent lower compared to a conventional storage option,” he said.
The warehouse’s unmanned stacker cranes, conveyors and automated truck unloading systems will handle receipt, storage and retrieval of palletised products, all together dealing with more than 11,000 pallet movements per day.
Following the resignation in late 2016 of Russell Sturzaker, the Refrigerated Warehouse and Transport Association of Australia Ltd (RWTA) is on the lookout for a new Executive Officer.
Chairman David O’Brien thanked Sturzaker for his work on the association’s website, events and fundraising, and wished him well for the future. “On behalf of the RWTA Board and all members and associate members of the RWTA, I wish to thank Russell for his professionalism, thoroughness and dedication during his two-year tenure with the Association,” he said.
The search for a replacement is ongoing, and O’Brien expects the position to be filled early this year.
The e-commerce giant Amazon has announced that it ‘employed’ 45,000 robots in 20 of its fulfilment centres during the 2016 holiday season, up from the 30,000 working alongside 230,000 human colleagues during the 2015 holiday season.
The amount of human workers employed in the last holiday season is to be announced at the company’s earning calls in early 2017. The Seattle Times noted that the company’s 2016 robot workforce has a bigger ‘headcount’ than the armed forces of the Netherlands.
The robots in question are Kiva Robots, made by the robotics firm bought by Amazon in 2012, Kiva Systems.
Amazon has reportedly filed a patent for a flying warehouse to support the company’s drone delivery technology, CNBC reported at the end of December.
Referring to a patent filing from April 2016 that was not publicised by Amazon at the time, CNBC said the US e-commerce giant was picturing the airborne fulfilment centre (AFC) to float at an altitude of 45,000 feet (ca. 13,000m) – much like an airship or blimp.
Drones would be able to access the flying warehouse to carry out local deliveries within minutes, for example to supply food or merchandise to fans at a stadium, CNBC reported.
“When a customer places an order, a drone or unmanned aerial vehicles (UAV) will fly down and deliver the package. Amazon insists that this would require little power because the drone would be gliding down rather than having to take off and land,” CNBC’s Arjun Kharpal reported.
“Amazon’s filing explains that the blimp would remain in the air and be refueled and replenished using a shuttle. This could be a smaller aircraft capable of docking onto the AFC and unloading products as well as fuel.”
Whether or not the plan is feasible may be up for debate, though, according to US logistics news service Heavy Duty Trucking. “The logistics of placing a large blimp thousands of feet above a populated area for long periods of time would require regulatory approval, not to mention the fact that Amazon’s drone delivery system is still in its infancy.”
In July, Amazon had already caused headlines with a patent that revealed it was thinking about using tall buildings and structures such as lampposts or churches as docking stations for drones to recharge.
Another patent described how drones would ‘talk’ to each other to plan routes and communicate.
In the UK, Amazon officially delivered its first package by drone in December, and the company said that it expected to expand trials in the near future.
It is interesting times for Sydney Industrial property in 2016 as we see demand for prime industrial properties relatively strong along with a diminishing supply of serviced and industrial zoned land.
With South Sydney and parts of inner and central Sydney areas continue to be rezoned and redeveloped to cater for mixed use development, more tenants are being forced to make locational and operational decisions around their warehouse property requirements.
Whilst staying in inner and central areas and competing in a shrinking industrial market is the only consideration for some, more companies have migrated to the outer west to achieve cost effective and operational suitable facilities.
With new development and prime grade leasing activity being relatively strong in key outer west suburbs over the last 3 years and only limited new industrial zoned and serviced land entering the market at the same time, it has become more challenging for companies to find the right property. The market is currently fielding some significant requirements for large warehouse D&C facilities (i.e. 25,000m2 plus) and it is said at this time there are only a handful of land opportunities that could meet these building requirements.
The limited prime grade facilities and suitable land is also having an impact on companies seeking prime grade warehouse facilities in the 3,000m2 – 6,000m2 size range, especially in the M4 and M7 corridor. Development in the outer west area can focus on facilities greater than 10,000m2 and supply below 6,000m2 can be limited and tightly held either with tenants or owner occupiers. We have recently experienced this lack of supply with some clients and situations where companies have had to move quickly to secure buildings, often competing with multiple parties. In some instances landlords who have undertaken some developments under 10,000m2on a speculative basis have been able to lease these prior to construction being completed.
There are still opportunities in the market but it may be another 2 years before we see more significant parcels of serviced and zoned industrial land become available. It is important for companies to invest in completing strategic reviews of their industrial property, including timing and cost considerations, for their next property lease. Companies should:
Understand current availability and future stock levels in current or future locations and how this will impact on their timing.
Start discussions early with landlords should they wish to remain in existing premises and put in place strategy to achieve the most cost effective outcome for their business
Assess whether the existing premises can be reconfigured to allow an extended period for the short to medium term
Get internal pre approvals, included expected capital costs, before going to the market looking for new space
Depending on size and requirements start looking at your lease requirements 1 – 2 years from existing lease expiry
Luke Stafford is the Director of Symmetry Partners, an independent corporate property advisory company who represents and advises occupiers of commercial and industrial property throughout Australia.
Manhattan Associates today announced it has received recognition as a market leader in Gartner, Inc. Magic Quadrant for Warehouse Management Systems.
This is the eighth consecutive time Manhattan Associates has been named as a Leader and the company is positioned the furthest along both axis of measurement: completeness of vision and ability to execute of that vision.
"We believe that the publication of this important piece of research is a chance for us to reflect on what we've accomplished on behalf of, and in close coordination with, our customers," said Brian Kinsella, vice president of product management for Manhattan Associates.
"We are honoured by our position in the report and look forward to shaping the next generation of distribution management solutions as the world of omni-channel fulfillment continues its brisk pace of change."
Manhattan's release of innovative products, such as DM Mobile (Distribution Management Mobile), Order Streaming and applications that optimize complex and high-volume order fulfillment, helps world-class companies tackle the unique fulfillment challenges and digital disruption presented by e-commerce and omni-channel market dynamics.
Stressing the importance of innovation, Gartner Research Vice President Dwight Klappich writes, "Innovation is a critical differentiator, and it is important for vendors to demonstrate the ability to support innovation by staying close to the most creative solutions or complicated problems in the market to drive pioneering functionality."