We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • ProMat 2023
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC
    • Podcast
    • Webcasts
    • Blogs
      • One-Off Sound Off
      • Global Logistics and Risk
      • Empowering Your Performance Edge
      • Analytics & Big Data
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • ProMat 2023
    • Upload Your Video
Home » Report: Automation can help solve logistics real estate challenges

Report: Automation can help solve logistics real estate challenges

Productivity improvements, higher revenue generation are among the benefits that can help offset an expected shortage of logistics space.

Automation can solve logistics real estate challenges
December 9, 2020
DC Velocity Staff
No Comments

Automation will play a key role in shaping the logistics real estate market over the next few years, as retailers, e-fulfillment providers, and others look for ways to improve productivity and boost revenue generation in their logistics facilities, according to research from logistics real estate firm Prologis, released today.

The company released the second installment of a special report on automation and logistics real estate, highlighting some of the challenges and opportunities in the market heading into 2021. Challenges include an ongoing shortage of well-located logistics space and skilled labor as well as a capacity crunch in last-mile delivery—all of which have been exacerbated by the Covid-19 pandemic and a dramatic increase in e-commerce activity. Increasingly, companies are looking toward automation to alleviate those problems and give them an advantage in the marketplace.

“Investments in automation technologies boost the value of the modern logistics facilities needed to flex with the future supply chain,” the researchers wrote. “Increased demand for logistics real estate in the next five years will be challenging for customers looking to build capabilities, especially in locations near end consumers. The pandemic has accelerated structural trends already at work and reduced new supply, increasing the likelihood of a critical shortage of space. Automation can bridge this gap by improving productivity, enhancing capabilities, and opening up new locations for logistics users.”

Key takeaways from the research include: 

  • New supply of logistics facilities in the United States could fall short of demand by 140 million square feet over the next five years.

  • Greater productivity can help offset a lack of available space, most notably in built-out, urban markets where vacancy rates are less than 1%.

  • Improving productivity in labor-intensive e-commerce operations can help companies meet growing volumes and consumer demands.

  • Automation brings economic benefit to logistics real estate: Customers that incorporate automation sign longer leases and are more likely to renew, which cuts downtime and related costs.

The research addresses other challenges, including shifting inventory strategies, pandemic-related demand, and the growing difficulty of implementing some automation technologies—largely because growing interest has led to long wait lists and increased lead times for some types of equipment.

Omnichannel Logistics Network Design
KEYWORDS ProLogis
    • Related Articles

      Six signs of the warehouse e-volution

      On-demand warehousing provider Flexe raises $70 million

      RLS Logistics to add cold storage capacity in New England

    Recent Articles by DC Velocity Staff

    More women join trucking industry as technicians

    GE Appliances unveils $450 million upgrade to manufacturing plant in KY

    Freight technology provider Loadsmart acquires computer vision platform provider

    You must login or register in order to post a comment.

    Report Abusive Comment

    Most Popular Articles

    • U.S. manufacturing resurgence faces headwinds

    • InPerson interview: Geoff Muessig of Pitt Ohio

    • BNSF retires locomotive used for testing alternative fuels

    • FedEx pilots a trailer-loading robot with twin arms

    • Five questions to ask before electrifying your indoor forklift fleet

    Now Playing on DCV-TV

    20230922intralox vs large

    Intralox Parcel Automation: Never Stop Moving

    DCV-TV 4: Viewer Contributed
    Your business—and the flow of products through it—never stops. Intralox’s logistics and material handling specialists have the technologies, services, and expertise to keep you moving.

    FEATURED WHITE PAPERS

    • Rodent Radar: A Guide To Help Protect Your Business From Rodents

    • The Value of Genuine Parts and Service

    • Five questions to ask before electrifying your indoor forklift fleet

    • Unlock Success with Our Freight Tech Checklist!

    View More

    Subscribe to DC Velocity Magazine

    GET YOUR FREE SUBSCRIPTION
    • SUBSCRIBE
    • NEWSLETTERS
    • ADVERTISING
    • CUSTOMER CARE
    • CONTACT
    • ABOUT
    • STAFF
    • PRIVACY POLICY

    Copyright ©2023. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing