A NEW ERA OF LOGISTICS AUTOMATION

Japan Logistics Occupier Survey 2020

 

Regarding plans to establish a new warehouse or to relocate, among the firms responding that they had a plan, 67% of respondents said they would “increase the floor area” while 52% said they would “increase the number of sites”. Overall, this indicates that tenants are still eager to expand.

Regarding the reasons for establishing a new warehouse or relocating, the three most popular answers were "operational efficiency", "increased volume of goods", and "obsolescence/usability". Companies appear to be prioritizing the efficiency and safety of distribution centers, and they are willing to pay a fair price to meet these needs.

Regarding the allocation and outlook for costs, on average, the highest proportion of costs were for transportation/delivery (34%) and labor (29%). In addition, the vast majority of respondents said that both transportation/delivery costs and labor costs would rise over the next three years. These two costs are likely to put pressure on future earnings.