Benefits of Adaptive Conveying

Benefits of Adaptive Conveying

Alfacon Solutions Reviews the Benefits of Adaptive Conveying

The cost of space, particularly warehouse and DC (Distribution Center) space, is at its highest level ever.

U.S. and Canada shippers looking to secure more warehouse and distribution space over the coming years should expect to pay more and have fewer choices. National vacancy rates thus far in 2018 hit a 18-year low and average rental rates are up 15 percent from a year ago in the hottest markets. The national average asking rental price in the first quarter was $5.75 per square foot. Rental prices have increased steadily each quarter from $4.62 per square foot in the first quarter of 2015.

Industrial real estate rates near the three largest U.S. ports — Long Beach, Los Angeles and New York and New Jersey — rose at least 10 percent year-over-year in 2018. Nationwide, there’s simply little to no industrial product available and the market demand is huge, posing unique challenges and putting greater emphasis on wise use of existing space via adaptive conveying.

The dearth of available industrial space exists even though the construction and delivery of new properties is accelerating. Construction pipeline continues to grow, with a 39 percent increase over the year in build-to-suit properties. There is an estimated 300+ million square feet of new industrial space slated for delivery nationwide in the coming months, which is a 12-year high. By 2019, almost 1.5 billion square feet of space will have been delivered over the previous five years.

Every sector of warehouse and logistics is contributing to the surging demand for industrial space, but e-commerce is contributing the most. The resounding strength of industrial tenant demand, paired with the toughest market conditions ever experienced in the sector, drives rental growth.

Adaptive Conveying image

Adaptive conveying maximizes space, scalability, and prepares for the future

Because adaptive conveying maximizes the use of space at a time when space is at a premium, the ability to use different line configuration based on shift, day of the week, time of the year is especially helpful. Because it also provides scalability, adaptive conveying modularity allows systems to be expanded or retracted very easily.

Adaptive conveying prepares for the future of conveying technology as modular systems allow new technology to be integrated easily into existing systems a small piece at a time while minimizing maintenance costs. Self-aware systems can provide maintenance warnings as well as in some cases make necessary adjustments to minimize maintenance and maximize productivity.