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The Need For Logistics Warehouse Will Be Doubled by Estimation

Property research and consultintg company Savills Plc estimates the need for logistics warehouse space will increase by approximately 240,000 m2 by 2021. The increase in needsis in line with the expansion of e-commerce companies.

Property research and consultintg company Savills Plc estimates the need for logistics warehouse space will increase by approximately 240,000 m2 by 2021. The increase in needsis in line with the expansion of e-commerce companies.

Based on the December 2017 edition of the Savills report, e-commerce expansion will become a new backbone of the logistics sector and give new colors as previously logistics only serve manufacturing companies. Currently, the new e-commerce company contributes 3% to the total supply of 8.1 million m2 of logistic warehouse. Currently, the contribution of e-commerce sales value to total new retail sales reaches 1%. However, with growth of 20% per year, the contribution of e-commerce is expected to be 7% -8% or worth US $ 14.47 billion in the next 2021 or an increase 2.08 fold.

It is estimated that doubling sales volume also means a doubling in demand for logistics space. In general, Savills assesses the logistics industry will grow thanks to the performance of the consumption sector, in line with population growth which in 2020 is expected to reach 270 million. Compared to 2010, the level of spending on consumption increased 1.42 times to Rp1, 309 trillion. The performance of e-commerce is also considered to be growing rapidly because the industry is beginning to take root to all segments, not limited to dominated large companies. Savills said the presence of enabler logistics companies helped spur e-commerce as they targeted e-commerce companies on a smaller scale.

In general, enabler logistics companies provide logistics handling services for e-commerce, from warehousing, distribution, to product photos. Therefore, e-commerce companies can focus on managing sales without the hassle of handling the delivery of goods.