The year 2020 will be regarded as the significant year which brought the logistics sector into the limelight as an essential services sector contributing majorly to the country’s GDP. There are numerous factors that led to the massive transformation, topping the list is the deadly Covid 19 pandemic which intensified the sector’s growth through an increased focus on grade-A warehousing, other factors include GST, national logistics policies, e-commerce boom, huge demand for a robust cold chain network, etc. Currently, there are more than 4200 acres of land being used for manufacturing and warehousing purposes.
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Warehouses these days are being built using PEB technology as opposed to traditional brick and cement construction. Prefabricated buildings constitute thirty-three percent of the total construction in India. They provide large chunks of space for storing, thereby easing supply chain operations. Furnished with modern amenities, state-of-the-art infrastructure, and advanced technology, PEB warehouses have been giving tough competition to RCC structures. The PEB industry is growing rapidly with a yearly growth potential of at least 10 percent. With a shift towards newer applications such as metro and railway stations, multi-storeyed commercial buildings – offices, schools, hospitals, aviation industry, malls, etc the entire construction industry is moving towards PEB construction
What are the factors that have led to the unmatched growth of PEB structures?
Directed by demands from third-party logistics, e-commerce and manufacturing units, the industrial warehousing sector witnessed an increase in the absorption space by 35 percent in 2021 across metropolitan cities of India.
Check out what the top prefabricated structure manufacturers in India have to say about the ROI on prefabricated warehouses.
After the Covid-19 pandemic, top e-commerce giants Amazon and Flipkart have increased their warehousing capacity on key consumption hubs by over 3 million square feet. As part of their expansion plan, Flipkart has signed a deal for 1 million square feet across Bengaluru, Mumbai Metropolitan Region, Hyderabad, Pune, Ahmedabad, Lucknow and Coimbatore while Amazon has signed a deal for 2 million square feet across India. Knight Frank’s ‘India Warehousing Market Report 2021’ estimates an annual increase of 19 percent in warehousing transactions in the primary markets to 76.2 million square feet by FY26 from 31.7 million square feet in FY21.
Without a doubt, the pandemic has accelerated the expansion of the logistics business. After a significant movement toward digitization and contactless operations, customers who previously operated offline turned online. As a result, a lot of D2C brands have sought to offer their customers the very best products. This highlighted the significance of smoothing out the whole supply chain for door-to-door delivery even more. Furthermore, the increasing demand for oxygen cylinders, vaccinations, and other basics, as well as food, necessitated prompt distribution. E-commerce has seen a significant increase as a result of these factors.
For the logistics and storage industry, the future seems promising.
Knowledge from the pandemic-ridden years, the emphasis on building stability, the rise of e-commerce, the adoption of newer technologies, and green logistics will boost the sector this year and beyond. There is substantial room for growth in the industry as a result of the government’s focus on ease of doing business, infrastructure improvements, and public-private partnerships.
Pinax Steel offers top-quality prefabricated warehouses equipped with modern facilities for a variety of industries. We design, build, and erect warehouses for both government and private clients. Thanks to our extensive experience in the steel industry as the most trusted pre-engineered building manufacturer in India, we excel in providing our customers with customized quality without wasting time or money. For more information, get in touch with us.