Temporary vs permanent warehouses

Temporary vs permanent warehouses
Edward Gallagher, business development director, Losberger De Boer.
Published: 6 December 2017 - 3:26 a.m.
By: ASC Staff

Warehouses, distribution centres, logistics hubs, call them what you will (some companies fancifully refer to them as ‘growth enablers’), but any large four-sided building with a flat roof, concrete floor and many aisles of racking, is an expensive undertaking.

Your standard warehouse can cost US $50-million to develop, while most competitively-priced lease agreements will tie logistics companies or end-user organisations into a contract of several years or more.

But, for a growing number of companies, a much shorter timeframe is what is needed, but with the same level of stability, safety and efficiency offered by a permanent building.

This is where Losberger De Boer steps in. The company is the world’s leading provider of temporary and semi-permanent buildings and while events and exhibitions are its bread-and-butter, the logistics sector, especially in the Middle East, is where it is seeing fast growing demand.

“There is a real appetite for our solutions in the GCC region – more so than in Europe,” says Edward Gallagher, business development director, Losberger De Boer. He adds that this shift in demand is also down to the short lead time of temporary warehouse solutions.

“The available land and space to execute additional space solutions is often not the problem (as it can be in Europe), but key decision-makers generally want and need to activate productive usage of available land,” says Gallagher.

“Unless they want to spend years waiting to build a permanent building, Losberger De Boer’s solutions means customers can be delivering revenue from land within weeks instead of years.” When coupled with the versatility of the structures that Losberger De Boer supplies, the winning proposition becomes clear.

“As an example, we have delivered a permanent expansion to a major logistics company’s warehouse facilities in the GCC region, doubling their available warehousing space,” explains Gallagher.

“At another site – a huge construction project – we have delivered a complete new warehouse on the build site itself from where the logistics company (the chosen partner for the mega-project) can run all its operations and house goods and materials on the customer’s site, as opposed to miles away in an existing warehouse.”

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