The huge surge in online retail and E-commerce over the last twelve months, driven by the Covid-19 pandemic, has resulted in a similar increase in demand for warehouse space, experts say
While the national lockdown in England is forcing retail’s ‘Golden Quarter’, which covers Black Friday, Cyber Monday and the Christmas period, to primarily online sales, the trend towards E-commerce is not new and could have a significant impact on the construction sector.
Retail property advisor, CBRE, reports that warehouse space take-up in Q3 was more than double that in the same period last year, reaching 13.3 million sq ft, breaking the previous record, set in Q2 this year, of 12.8 million sq ft.
CBRE said pure online accounted for the largest proportion at a sector level, at 33%, but third-party logistics operators, general retailers and food providers also saw a significant rise in activity during the quarter.
Huge warehouse projects have helped specialist contractors post impressive margins over recent years and, as the rise of robotics continues, the projects are becoming increasingly more complex than the ‘big sheds’ they might previously have been perceived as.
With the ongoing challenges of Covid-19 and potential impact of Brexit, this area of growth is undoubtedly a huge boost for the construction sector. With competition to win new jobs as fierce as ever, it’s vital to produce strong tenders with accurate, and profitable, margins.
Using software designed for the job
In this landscape, contractors and subcontractors will increasingly turn to technology and digital solutions to improve efficiency, reduce costs, cut wastage and speed up construction processes, to get the upper hand on their competitors.
Estimators have a key role in winning warehouse projects and delivering them on time and on budget. This involves not only negotiating the best price with subcontractors and other suppliers, but also keeping the whole estimating process as efficient as possible to drive down costs and increase profits.
The best way to keep these processes efficient is to invest in specialist construction estimating software such as ConQuest. Using software designed for the job, rather than complex spreadsheets, can save hundreds of hours of administration time on manual and repetitive tasks.
The time-savings and increased efficiency at the estimating stage can have a significant impact further along the project. If the estimator and quantity surveyor are using the same estimate and data, for example, this allows for a seamless handover once the work is won. Accuracy at the estimating stage also allows for more effective monitoring of the project as it progresses, ensuring costs remain in line with forecasts.
Get ahead of the curve with estimating software
Costing up a warehouse project using traditional methods, regardless of whether you have designed your own spreadsheet and know every formula inside out, increases the chances of costly mistakes and potentially hours of wasted time if errors are not spotted.
The growth of e-commerce which is fuelling the demand for warehouse space is only going to continue and this presents great opportunities for contractors and subcontractors alike. Winning warehouse projects is tricky but by implementing specialist estimating software, construction firms can get ahead of the curve and generate growth from the fast-changing retail sector.
Request an Access ConQuest Estimating demo today.
