Warehouses become smaller why?
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1 Warehouses become smaller why? Eindhoven 23rd September (182) Page 1
2 Warehouses become smaller why? Analyses of search behavior on our website shows: The logistical hotspots remain, but shift slightly However, people are looking for smaller warehouses Decrease in size of search queries Decrease in calculation size for building costs Three possible explanations: New distribution strategies Risk avoiding behavior for new investments Changing distribution channels (182) Page 2
3 Logistic hotspots remain, but shift slightly Traditional hotspots New hotspot? Blue banana belt London, Brussels, Frankfurt, Milan 70 % of the European market can be reached in 1 day. Golden triangle London, Paris, Dortmund 69% of all logistical activities. Platinum triangle Rotterdam, Calais, Prague 70% of the search queries on our website since info@warehousematch.com +31 (182) Page 3
4 Warehouses are getting smaller (1 of 2) Search pattern for warehouses changed drastically Average: Average: Average: m m 2 5,615m 2 100% = > 10,000 m 2 = ,000 m 2 = ,000 m 2 = 0 2,500 m Search queries up to 5,000 m 2 increased from 35% up to 75% Search sizes decreased with 75% from to 5,500 m 2 info@warehousematch.com +31 (182) Page 4
5 Warehouses are getting smaller (2 van 2) Search pattern for building costs also changed drastically Average: Average: Average: m m m 2 100% = > 10,000 m 2 = ,000 m 2 = ,000 m 2 = 0 2,500 m Calculations up to 5,000 m 2 increased from 45% to 65% Calculation sizes decreased with 55% from to m 2 info@warehousematch.com +31 (182) Page 5
6 Findings: Logistical hotspots remain, but shift slightly However, people are looking for smaller warehouses Decrease in size of search queries Decrease in calculation size for building costs Three possible explanations: New distribution strategies Risk avoiding behavior for new investments Changing distribution channels (182) Page 6
7 1. New distribution strategies? Economical crisis leads to reduced funds for financing and reevaluation of distribution strategies Less stock Shorter (distribution) lines Quick response time As a result, the need for m 2 is decreasing Less warehouses Smaller warehouses Closer to the customer Conclusion: bigger warehouses are less interesting New strategies are structural info@warehousematch.com +31 (182) Page 7
8 2. Risk avoiding behavior for new investment? The Economical crisis makes companies avoid risks In addition, the financial possibilities are reduced Even when the market improves companies remain cautious Conclusion: bigger warehouses are less interesting Avoiding risks is temporary (182) Page 8
9 3. Changing distribution channels? Besides (or maybe due to) the economical crisis the sales through the internet increase Distribution of goods on behalf of internet sales requires a different infrastructure Few central and larger hubs Multiple local, smaller cross-dock locations This growing market is also visible through the explosive growth of courier services Conclusion: bigger warehouses are still, but to a lesser extent interesting Shifting focus from the infrastructure info@warehousematch.com +31 (182) Page 9
10 Conclusions: Logistical hotspots remain, but shift slightly However, people are looking for smaller warehouses Decrease in size of search queries Decrease in calculation size for building costs Three possible explanations: New distribution strategies Risk avoiding behavior for new investments Changing distribution channels (182) Page 10
11 Thank you for your attention! (182) Page 11
12 If you want more information: Telephone: +31 (0) (182) Page 12
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