Fortunately for us, certain elements of the COVID-19 pandemic are (fingers crossed) temporary. But the impact of COVID-19 on the warehousing industry seems to be long-lasting. Like every industry that is a part of the American economy, the warehousing industry felt the ripple effect caused by COVID-19. Apart from the several casualties, warehouse closures became common and supply chains globally struggled to keep up.
But as we begin to settle into the new normal, it’s time to think of the future. Because of that, New England Commercial Brokerage is taking you through the most prominent ways the pandemic is changing warehousing.
1. Social Distancing Will Continue
If you’re an investor looking for a warehouse to invest in, it’s imperative you know that social distancing protocols are going to continue. Because of this reason, workers will have to stay further apart even when they’re working inside of a warehouse. This will change a warehouse’s working conditions, too! We’re talking sanitization stations, one-way traffic aisles, and designated work areas.
The precautions will help curb the spread of the coronavirus, which is important if workers are to stay healthy!
2. Bigger Inventories
Before the pandemic shook things up, manufacturers had adopted lean manufacturing into their warehousing business. A Just-In-Time (JIT) model helped them keep the costs low and use the space available to them more efficiently. Now that we’ve introduced to the “new normal,†inventory shortages are a huge problem. In some cases, production had to stop completely because of a lack of resources.
While lean manufacturing will continue, the balance between safety stock and JIT will definitely change. Inventory on hand will see an increase, and warehouses will need more space.
3. Increased Need for Warehouse Automation
Digitization has been a trend in every industry for quite some time, and COVID-19 has only sped up the process. As warehouses continue to cope with increasing inventories, there’s going to be an amplified need for space for work-in-progress. To deal with this problem, warehouse managers will look towards automation strategies to reclaim the floor space and improve the overall efficiency of their workforce.
4. The Growth of eCommerce
Even though the eCommerce boom has changed businesses in the long run, some businesses were hesitant to make the jump to an online model. But ever since the pandemic has hit, more and more businesses are willing to take the leap. Distribution and warehouse centers aren’t a new element of eCommerce, but they have also seen an increase in demand. Some shoppers are still reluctant to go to a shop to buy what they need, and recent research suggests that even after the threat of COVID-19 subsides, this trend will continue.
Conclusion
As we settle into a life that has completely changed, the only thing we’re certain about is that nothing is certain. If you’re an investor who has been thinking of investing in a warehouse, now’s the time! Let New England Commercial Brokerage help you streamline the process.
As of now, we are licensed in:
Georgia,
Massachusetts,
New Mexico,
New York,
Rhode Island,
Tennessee,
Utah, &
Virginia
We use cooperative brokers in places where we are not licensed to stay in compliance.
Call us today on 860-648-1600 to get started!