5 Critical Ways the Long-Term Effects of COVID19 Will Change the Cold Storage Warehousing Industry

“Increased demand for temperature-controlled space – Due to the increase in online grocery shopping & a recent consumption trend toward food requiring temperature-controlled space, like frozen meat and processes poultry, there will be a heightened demand for cold storage capacity.

Greater need for infill temperature-controlled facilities – As online orders rise, there will be a blending of retail and industrial space, as well as a greater need for infill temperature-controlled facilities in proximity to consumers.

More delivery-take-out requires cold storage capacity – Restaurants may see a significant shift in dining formats with less dine-in options and more delivery or take-out that would require cold storage capacity. Foodservice companies that supply restaurants may look to second-generation cold storage space as a cost-saving advantage in a limited dining environment.

Cold storage consolidation – There will be further consolidation to gain more control over the U.S. cold storage footprint. Leading to specialized development in major metros areas where large cold storage operators will likely partner will developers to build a network in proximity to high-density populations.

Facility automation – Automation will increase in cold storage facilities to efficiently fulfill orders. This will end up making up the shortage of workers willing to work in the extreme conditions these facilities have. This will prompt higher-density, greater-height and smaller-footprint buildouts that will be required for around-the-clock operations.”

Source: https://www.scmr.com/article/food_industry_shifts_under_surge_in_online_demand_says_cbre/

 

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