Why logistics firms are taking up bigger warehouses

Since the global pandemic sent supply chains into a tailspin, delivery delays have affected everything from toilet paper to bicycle parts.

Wary of continued disruption, logistics and manufacturing businesses are hunting for larger warehouses, where bigger inventories can provide greater resilience during difficult times.

Globally, business demand for larger warehouses is expected to be significantly higher over the next three years, particularly for warehouses between 10,000 to 50,000 square metres. Logistics operators don’t want a repeat of the chaos they found themselves at the beginning of the pandemic.

Though demand for more space has prevailed over the past decade, COVID-19 emphasised the need to transform supply chain models. The pandemic has reversed the trend of streamlining inventories, adopting a ‘just-in-case’, rather than the traditional ‘just-in-time’ delivery method.