This attitude of occupiers of preferring to save on costs as their sole objective is changing. There has been a gradual transition in the mindset of occupiers to use the services offered by organized segments.
The industry is expected to witness a structural shift over the next 3–5 years.
A plethora of factors are driving this wave of change such as
- requirement from compliance regulators (in case of the pharma industry)
- quality consistency assurance required by clients/ regulators
- statutory penalties on non-complaint warehousing facilities
- economies of scale being achieved through larger warehouses
- safety and security of goods
- efficiency in operations, quicker turnarounds, need for efficient warehousing designs
- the advent of e-commerce and other multinational businesses that prefer to occupy only complaint facilities
