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Economic Reboot Puts Warehousing Facilities at Heart of Revitalization

A surge in new warehousing facilities using next generation distribution strategies means good news for towns hit by factory closures.

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All over the world, once-empty factories and warehousing centers are finding new life as the hubs of 21st century "logistics parks." As failing companies leave behind their freight and transportation infrastructure, entrepreneurs have discovered the potential in bundling critical distribution centers in strategic locations. Falling real estate prices have made it easy for warehousing operators to bundle neighboring parcels and to create next generation "super-hubs" for trains, trucks, and ships.

Large companies, looking to undertake extreme cost cutting measures, have adopted outside distribution and warehousing services in record numbers. Affordable online commerce and fulfillment services close the gap from the other end of the business spectrum, allowing small business owners to collaborate with outsourced warehousing and shipping companies to provide the same level of customer service as Fortune 500 enterprises.

Flexibility is crucial for the clients of warehousing companies, which is why the concept of logistics parks with corporate planners. Warehouses and loading docks can be allocated to customers on the fly, without needing much additional configuration. By sharing a single staff for an entire facility, warehousing companies can amortize the costs of training, development, and benefits across multiple client projects. Compared to the internal costs of running an in-house storage operation, companies prefer the lower expenses of using outsourced warehousing services.

How Warehousing Experts Scout Locations for Logistics Parks

Unprecedented opportunities to lease or purchase real estate and equipment have put third-party warehousing services at the forefront of this trend. In addition, warehousing distribution companies can leverage lower prices to set up shop in locations that were previously too expensive or otherwise inaccessible. Park planners evaluate prospective locations base on other factors, including:

  • access to key highways
  • proximity to major ports
  • accessibility of major shipping partners
  • flexibility to accommodate ongoing repurposing to meet customer demand

The right location for a logistics park can help client companies expand their business in exciting ways. For instance, a warehousing distribution hub in Arizona can allow companies to supply customers in California, where the cost of doing business can be significantly higher. Likewise, the reduced costs of using outsourced warehousing can allow client companies to use more aggressive pricing as part of their marketing and outreach efforts.

High Demand from New Warehousing Customers Helps Revitalize Neighborhoods

Logistics parks do much more than make it easy for client companies to conduct business, however. In the communities where warehousing distribution services set up shop, the presence of a major new employer can be enough to revitalize neighborhoods or entire towns. Rather than risk getting burned by betting on a single industry, communities that welcome logistics parks can hedge their bets. Employees become experts on warehousing while serving the needs of multiple corporate clients. Shared warehousing greatly reduces the risk of layoffs, especially when employers have located their logistics parks in strategic areas.

As companies request quotes from warehousing distribution vendors, experts believe the size and location of logistics parks may impact the selection process. Service providers that invest in new facilities, equipment, and training during an economic downturn will position themselves for tremendous growth as the world economy stabilizes.

Sources

Birmingham News

Fibre 2 Fashion

The Nevada Appeal


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