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WAREHOUSE BOOM CONTINUES DESPITE AMAZON PULLBACK

Written on: July 15, 2022

As the network of warehouses, logistics hubs, and fulfillment centers powering modern e-commerce grew in recent years, one company was at the center of the activity: Amazon. While the company is now looking to reduce its warehouse footprint amid slower-than-expected growth, plenty of demand remains for new warehouse space, Sebastian Obando reports in Construction Dive.

“Amazon went on a massive spending splurge during the pandemic in order to capitalize on booming demand for e-commerce and home delivery,” Obando writes. “In some cases, Amazon bought everything in production for months, putting significant pressure on an already strained supply chain. That was further exacerbated when contractors turned to hoarding materials earlier this year.”

Amazon’s pullback could mean shorter lead times for everything from roofing components to HVAC and electrical equipment, making it less expensive for other companies to construct facilities. There’s still plenty of work to go around, Obando writes, with one Florida general contractor telling him their warehouse backlog in 2023 is greater than it had coming into 2022. Our new training course at Hanley Wood University, Meeting the Energy Needs of Warehouse Facilities With Propane, is a valuable resource for architects and engineers to learn more about the technologies used by these facilities, especially in less-developed areas without natural gas.

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