A Big Opportunity for Warehouse Sector Is Awaiting in Future
Even a few decades back the warehouses were godowns, which were nothing but old buildings on the verge of breaking down. Ever since the industry has progressed a lot and you now have companies that maintain warehouses and offer you great services too. Much of this has happened because of the progress that the e-commerce and manufacturing industries have achieved. The sector is getting better at a rapid rate thanks to how the business is and the technology that the various companies are using. The changes are dynamic. However, the question that we need to ask over here is that if the industry is adapting quickly enough given all the infrastructural and regulatory challenges that it is facing.
The growth that the industry has achieved
India, as an economy, is always getting better. Experts expect that factors such as warehouse property systems and logistics will play a major role in the same. This is especially true when you think of all the trading being done in India and the manufacturing sector in general. The warehouses too are getting bigger and better rapidly. On average, these facilities now take up an area of 2 to 3 lakh sq feet compared to 20,000 sq feet a few years back.
The present makeup of the industry
Expert reports and studies have stated that back in 2015 the entire worth of the industry was near 560 billion rupees. This included all the verticals. On average, the sector has been growing at 10% each year. Warehouses that stock horticultural and agricultural products make up 15% of the industry. The cold storages account for around 16%. Warehouses that work with the retail and industrial sectors account for the maximum percentage of the industry at 55. The CFSs (container freight stations) and ICDs (inland container deposits) make up 14% of the industry. Such an industrial area in Mumbai would be great for your business.
Important factors that have led to the growth
Technology has played a major role in the remarkable growth that this sector has achieved. It has improved the functioning of your warehouse. We give the main credit for this development to the likes of the AIDC (automatic identification and data capture) technology. The warehouse and logistics industry has also used its resources to the optimum level. It has achieved magnificent success in that context. This has helped the companies in this sector distribute the cargo seamlessly and track the consignments.
The partners of growth
If you want your business to succeed, you could need a warehouse property. You cannot deny the fact that if you want the trade and manufacturing sector to grow, you would have to distribute the cargo effectively. Experts say that if you equip your warehouse properly, you would be efficient in your work as a logistics company. For business owners it is important to maintain a great supply chain and the warehouse – and the business location – plays a major role in the same.
How does the future look?
In developed economies, logistics expenses account for almost 7% of the GDP (gross domestic product). In countries like India, this goes up to around 14%. If you can minimize the costs for your industrial area in Mumbai, it would help you immensely. This is especially true for the manufacturing sector. The ideal figure in this context would be around 5% of the GDP. The best thing in this situation is that the manufacturing industry is becoming increasingly sophisticated. Therefore, it is looking at third-party companies that offer logistics services. This helps them reduce their expenses and grow their business.