The Logistics Analysis That Drives Industrial Site Selection
December 31, 2023
Industrial real estate is key to establishing an efficient supply chain. There are several critical business imperatives such as growth or new market entry, contraction and cost takeout, mergers and acquisitions or spinouts, changes in the customer promise, and risk mitigation efforts that can create opportunities for change within a company’s supply chain.
Whether significant growth occurs in a short period of time or slower over years, companies experiencing growth, even at a small 3–5 percent compound annual growth rate (CAGR), will bump into capacity constraints. The company might be able to drive short-term efficiency of space, but at some point, these capacity constraints trigger the need for additional space options, whether that includes expansions, adding off-site storage, or relocation to a larger building.
