Expand Your Warehousing Without Expanding Your Budget

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The economy is on the rise and manufacturing in the United States is trending in the same direction. With increased demand, North American manufacturers are looking to expand their production, which leads to increased warehouse and distribution needs.

Therefore, businesses often are faced with a tough choice: spend capital on producing assets or put it toward building additional warehouse and distribution centers. In an increasingly competitive market, more businesses now choose to invest in the former.  At BlueScope Properties Group, however, our partners are able to optimize their warehouse/distribution center operations. How? Let’s examine.

For starters, we discuss with businesses a range of options for expanding their existing building footprint — such as knocking down an old warehouse, replacing it with a new modern warehouse space, and then building on land adjacent to the existing facility (to provide additional company revenues?).  The result is meeting warehousing needs while also improving operational efficiency.

Bottom line, businesses are looking for efficiencies. And through consolidating warehouse needs and/or relocating them closer to their manufacturing plant or customers, businesses can realize significant savings. A common pitfall for businesses is to look for existing warehouse space, but that usually comes with compromise. For example, a single warehouse may not be available; either so multiple spaces will need to be used or the location leads to unnecessary transport cost, all which defeat the original principle: efficiency.     

Whether a company is in growth mode and/or seeking efficiencies, the following has to be considered before making facility decisions:

  1. Expansion of the existing building footprint
  2. Replacement of an old warehouse with a new modern warehouse space
  3. Value of consolidation and aligning facilities, according to customer locations
  4. Value and potential use of the land it currently owns

While single-use manufacturing facilities and associated warehousing facilities are typically owned by the operator, there is an alternative solution to consider. BlueScope Properties Group can work with end users to provide a built-to-suit lease option, which could expand on the our purchase of land by taking on that leasing function.

Every business has its own unique manufacturing and warehouse needs, issues and constraints that require flexible and creative solutions.  BlueScope Properties Group helps businesses grow throughout North America regardless of their needs, by providing build-to-suit warehouses to those looking to expand their manufacturing and/or distribution footprint while eliminating the capital expense and management responsibility for the long-term.