The Goodman Group is on track to develop $5 billion worth of warehouses worldwide to accommodate the ever-growing eCommerce market.
The Australian-owned property group is capitalising on the shift toward automation and consumers’ need for convenience, delivering predictive AI-enabled warehouses for companies the likes of Amazon and Chinese marketplace Alibaba.
The prominence of Amazon in the global eCommerce supply chain sphere means retailers are feeling the heat when it comes to delivering goods within tight time frames, initiating a shift within the Australian logistics industry.
eCommerce accounts for around 14% of the current retail market, with projections that it will grow to 22% by 2023 urging more brick-and-mortar stores to move online.
Goodman Group founder and CEO Greg Goodman said changes in the retail sector would positively impact the industrial property sector.
“As consumers’ demands increase, our customers are responding by consistently seeking to create more efficient logistics networks,” Goodman said.
The increased demand for intelligent logistics facilities will be lucrative for a number of local construction companies, such as Vaughan Construction, which has delivered a number of warehouses in key growth corridors including Truganina and Lyndhurst.
Texco, who has worked with Goodman on a number of projects, has recently begun construction on a new 25,000sq m logistics facility within the Group’s industrial park in Truganina, slated for completion in 2020.
Qanstruct, whose portfolio of recent builds in Melbourne’s southeast has secured them as a key player in the commercial logistics industry, also stands to benefit from Goodman’s expansion, and will deliver a 16,500sq m facility within the group’s Enfield Intermodal Logistics Centre in Sydney’s Strathfield South.
Amazon is partly to thank for the industrial construction boom occurring in Melbourne’s outer suburbs.
The global eCommerce store, which opened its first Australian warehouse in Dandenong South earlier this year, set the tone for international players to enter the Australian market.
A number of global brands are opening their doors in Australia as a result, with Germany grocery giant Kaufland having begun a major rollout of stores in Victoria this year.
The knock-on effect is being felt by local brands, with Bunnings Warehouse having announced a strategic shift to online in March this year, and offering its full, 60,000-strong catalogue along with click-and-collect capabilities.
The resulting uptick in the industrial sector is a boon for construction employment, offsetting the recent apartment downturn.
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