All around the world, warehouses are jam packed — some even have products piling up outside their doors. With this incredible demand squeeze, current warehousing prices are at an all-time high for the fourth month in a row. In fact, today’s growth represents the longest ongoing expansion peak in five years.
According to commercial real estate publication GlobeSt.com, the sharp increase in demand for warehouse space is due not only to the extraordinary escalation in e-commerce, but also the fact that same-day delivery and just-in-time distribution require three times more fulfillment space than brick-and-mortar retail.
“Pandemic-related growth of grocery e-commerce and same-day delivery alone compressed five years of the evolution of consumer behavior change into a single year,” said C.J. Follini, principal at Noyack Capital Partners, in the Globe St. article.
Nearly 80% of warehouse occupiers in the Asia-Pacific region plan to expand their real estate footprints within the next three years, according to CBRE’s 2021 Asia Pacific Logistics Occupier Survey. In India, e-commerce penetration is expected to accelerate from 6.5% pre-pandemic to 11.7% by 2025, The Economic Times reports.
Walmart-owned Flipkart opened four new warehouses in the region just last month, which has created 12,000 new job opportunities. Similarly, Europa Warehouse’s new high-tech facility in Corby, England — which cost about $96.7 million to build and equip with automated systems — is struggling to find the workers it needs to operate properly.
A recent LinkedIn jobs report found that positions on the frontlines of e-commerce are the number-one job on the rise right now. The report states that hiring for these roles grew 73% year-over-year, and demand continues with more than 400,000 open jobs. Plus, projections show that there will be as many as 600,000 more by 2029.
Storing knowledge
Physical logistics systems are essential supply chain arteries, but people are the heart that really keeps things pumping. With this in mind, ASCM is proud to announce that we have launched the ASCM Supply Chain Warehousing Certificate, designed in partnership with global logistics real estate company Prologis Inc.
This program provides entry- and mid-level workers with the knowledge and skills they need to carry out the latest advancements in warehouse management strategy. In addition, for those already experienced in sourcing, purchasing, and supplier and customer relationship management, earning the certificate is a great way to enhance current knowledge — and it’s eligible for 20 certification-maintenance points for APICS credential holders. Most importantly, as this year’s ASCM Supply Chain Salary and Career Report revealed, launching a warehousing career is a wonderful entry to the highly fulfilling and rewarding field of supply chain. I hope you will explore the new certificate — and this “number-one” professional opportunity.
