Logistics & Industrial Occupier Market Outlook 2024

Automation & Technology - Options & Impacts

While the shift to automation has occurred in various forms over the past two decades, the rate of take-up in recent years has accelerated and reflects a combination of a drive for efficiencies and declining investment costs, which have driven faster returns on investment. No single solution exists, and the business case for automation must be considered on a case by-case basis, taking into account the existing facility, current lease term, and business-specific factors such as sector, nature and scale of existing operations. Although the cost of adopting automation and technology is declining, it still remains a significant investment which can prove challenging for small-to-medium sized occupiers. This factor is why larger scale businesses such as supermarkets and national retailers are significantly more advanced on the automation spectrum. However, there are low cost options that can deliver cost savings to occupiers.

Factors for consideration when determining the automation solution include: • The need for speed, scalability, flexibility and portability, fixed and mobile solutions. • Growth of e-commerce has accelerated the adoption of automation; however, B2C and B2B have very different order profiles. • Large quantities of small orders with time critical delivery windows puts pressure on operations to meet service levels and accuracy. • Storing inventory in close proximity to customers comes at a premium real estate cost, driving the need for efficient use of space. • 24/7 operations are challenged by rising labour costs and tightening availability. • Types of logistics developments may require different solutions – design and construct, speculative, brownfields retrofit. • Automation solutions may be informed by constraints on the availability of equipment and longer commissioning times.

Figure 21. Fixed Automation v Mobile Automation

FIXED AUTOMATION

MOBILE & SEMI-MOBILE AUTOMATION

These types of automation tend to be large, bespoke or semi-bespoke, fixed capacity with limited flexibility, and high-price installations. This includes: • Automated storage and retrieval systems (AS/RS) • Automatics sorters • Converyor belts • Robotic palletisers

These types of automation tend to be discrete robotic solutions that work in a range of environments and offer greater flexibility for scaling up/down as needed. Common types include: • Automated Guided Vehicles (AGV) including autonomous forklifts • Autonomous Mobile Robots (AMR) • Specialized/niche automation, such as automated boxing and trailer unloaders

AUTOMATION is generally grouped into two categories:

Source: Cushman & Wakefield

29 | CUSHMAN & WAKEFIELD | LOGISTICS & INDUSTRIAL

OCCUPIER MARKET 2024 OUTLOOK | 30