The wildfire nature of COVID-19 has permeated every walk of life from working conditions to shopping habits. And industrial growth is no different as e-commerce giants continue to hunt for more warehouse and logistics space.
A Spot For Your Stuff
The stay-at-home orders across the United States have driven e-commerce up 40-60% in the last four months. People still want convenience, but now it’s also a matter of product availability and personal health concerns.
Online retailers need more space to store their stockpiles of hand sanitizer and toilet paper. According to a Prologis report, the e-commerce industry requires three times as much warehouse and logistics space as brick-and-mortar retailers.
Since in-person stores have the option to store their product within their facility, they require less space than their online counterparts with products waiting to be delivered. However, the emphasis on omnichannel distribution has also pushed brick-and-mortar retailers to diversify their delivery options, increasing their demand for warehouse space as well.
Long-Term Industrial Growth
The short-term economic gains of the last few months look like they’re here to stay, at least until mid-2021. The necessity to turn to online shopping has cracked open the Pandora’s box of e-commerce opportunities.
People are not only buying necessities but items like toys and apparel. The convenience and reduced exposure to populated public environments have created the perfect storm for e-commerce to drive industrial growth. E-commerce was up 25% in April alone – a 15% year-end increase from 2019.
Now more than ever, online shoppers are driven by necessity rather than desire. Working from home means people need to create a home office as quickly as possible and online accessibility can meet their last-minute demands.
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