According to Tompkins Solutions’ supply chain specialist CEO, David Latona, now is an ideal time for investing in brownfield projects.
Brownfield warehouse construction is the process of improving existing warehouses, while greenfield construction involves building new facilities.
The year 2023 witnessed a 25% decline in new warehouse construction. Instead, businesses are now concentrating on enhancing their existing warehouses. A new warehouse is very expensive, making companies reluctant to invest in them if the future level of business is uncertain. David Latona says:
“It’s the time to look inside your existing operations and facilities until the uncertainty is reduced.”
Numerous warehouse operators are considering automated solutions to meet growing customer demands. However, fully automated systems are costly. It may be more beneficial to improve current facilities at a significantly lower cost. For example, investing in better equipment maintenance ensures peak performance and longevity. Another way of improving efficiency is by upgrading material handling equipment and warehouse management software. It is worth consulting with a warehouse equipment manufacturer that specializes in producing bespoke equipment such as trolleys or packing stations designed explicitly for individual operations.
David Latona emphasizes that not all improvements concern equipment alone, and that management must also address staff needs as they play an indispensable role in efficient warehousing procedures. Both temporary and full-time employees should feel contented and be treated well.
If you’re considering a new warehouse, these revelations suggest it may be a good idea to focus primarily on enhancing your existing site rather than finding a new building if you want to maximise your efficiency.
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