Technology Key in Warehouse Retrofits

A study shows that renovated facilities are increasingly sophisticated as well as safer and more sustainable workplaces.

Dodge is currently forecasting $53 billion of construction starts in the US warehouse/distribution center market in 2022, up 1,400% since 2010 and representing over one-third, or 36%, of the entire US commercial construction sector this year.

Driven by strong consumer demand in the economy and the explosion of e-commerce retailing, these facilities are deploying sophisticated technologies to optimize performance and respond to changing demands.

Additionally, they are round-the-clock workplaces for a growing number of employees and require increasing levels of energy, security and safety management.

The report is based on a survey of several hundred industry professionals who create these facilities.

Tech-Enabled Precision Improves Efficiency

 “Automation is critical to solving both workforce shortages as well as making more efficient use of the built floorplates,” says Eric Morin, national director of architecture – industrial, Ryan Companies, which has partnered with Kroger and Ocado to build the duo’s latest fulfillment center in Forest Park. “The most cutting-edge automation technologies focus on delivering goods to humans rather than having humans roam the aisles on fork trucks or pallet jacks,” she tells GlobeSt.com.

“By reducing the space needed for equipment circulation, robots can pass within centimeters of each other and operate at higher speeds with less margins. This allows humans to do what they are good at, verifying and sorting complex items, especially grocery, while allowing the robots to do the least intellectual and highest movement jobs. This also opens up the opportunity to stack functions on mezzanines, making better use of the space. The result is a much faster and more space-efficient warehouse.”

On-Demand Warehousing Driving Retrofits

Key findings from the Dodge Construction Network SmartMarket Brief report, done in partnership with LiftMaster, include: 

Investments are driven by the need for flexibility to accommodate higher volumes and changing business models. Fluctuating demand, rapidly changing product lines and evolving business models such as on-demand warehousing are driving the need to invest in retrofits and new projects.

Facilities are increasingly close to urban centers. All regions of the country report increases in the percentage of projects located in or near urban centers to support rapid delivery expectations from consumers.

Connected automation systems are proliferating at loading docks. 77% of respondents report automation of operational and handling processes at loading docks on their recent projects, with as many as 88% citing use of one of the four specific systems studied.

Connected technology systems are being deployed facility wide. In addition to the widespread automation of operational and handling processes throughout these facilities, between 60% and 82% of respondents report installation of data-capturing smart controls, A/V and light communications, and security and access control/tracking systems on their recent projects.

Worker amenities and safety are increasingly important, especially in a tight labor market. All regions report increases in a wide variety of employee amenities and 88% of respondents say owners place a high priority on employee safety when planning their facilities.