Automation and artificial intelligence are becoming crucial tools for industrial markets, according to a report from Yardi. Not because of what property owners need — although automation can help with building energy use and maintenance — but what tenants need in place.
Retailers, warehouse operators in B-to-C and B-to-B, logistics firms, transportation hubs, and manufacturers expanded facilities during the pandemic, using e-commerce at a rate never before seen. They needed to store larger amounts of finished goods, assemblies, components, and materials to ensure availability in the face of supply chain collapses.
However, a global movement of products has resumed. As Yardi noted, now companies have turned their attention to inbound and outbound supply chain optimization. A significant portion of that is harnessing the power of robotics and computing to take on more aspects of work, reduce the amount of labor necessary, and speed up activity.
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Now is a time of experimentation. Amazon, in a major shift, looks to unite online and physical stores. The company is outclassed in reach and while it is the largest online retailer in the U.S., Some of these competitors have significant digital operations. A Whole Foods store in Plymouth Meeting, Pennsylvania reportedly is getting a micro fulfillment center that will let customers order Amazon Fresh-type products online while shopping at Whole Foods and then get the other products at checkout.
Large companies that handle significant amounts of freight or inventory increasingly want better ways to manage materials handling with techniques like robotic picking and storage governed by machine learning that can come to anticipate patterns of incoming and outgoing goods and direct items based on how frequently they are needed and the amount of time it takes to retrieve products from a given warehouse location.
Similarly, manufacturers can use machine learning for better operations, including quality control, predictive maintenance and inventory management.
Any of these uses require facilities designed with them generally in mind. There has to be enough power available, which, depending on the location of a facility, could need arrangements with a power distributor. Use of solar, wind, or some other renewable power source could replace or supplement traditional power delivery and reduce energy costs. Facilities could need specific construction to provide floor strength and overhead clearance. If using robotic ferrying of trailers between loading docks and parking, that will mean charging facilities. Depending on the software, tenants might need robust internet connections.
All this requires planning, discussion with tenants, and negotiation about who pays for what.
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