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EdTech Market Projected to Attain USD 421 Billion by 2032, Fueled by K-12 and Higher Education Sectors

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Global Trade Daily, Technology

EdTech Market Projected to Attain USD 421 Billion by 2032, Fueled by K-12 and Higher Education Sectors

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According to Market.us, The education sector is experiencing significant growth, driven by increased mobile adoption and the availability of affordable e-learning resources. Notably, the United States, Europe, and the Commonwealth of Independent States are at the forefront in terms of internet and mobile penetration.

The EdTech Market is anticipated to grow from a value of USD 146 billion in 2023 to USD 421 billion by 2032. This represents a Compound Annual Growth Rate (CAGR) of 12.9% from 2023 to 2032.

EdTech, a blend of ‘education’ and ‘technology’, encompasses the use of both software and hardware to enhance teaching and learning. Its definition varies based on the user’s perspective. For instance, teachers might emphasize classroom applications, whereas investors might focus on market trends and emerging companies. The report will clarify these differing interpretations. It will also explore the diverse range of EdTech products and pinpoint emerging trends. EdTech is not limited to just tools and devices; it also includes the study and application of various teaching methods to effectively impart skills and knowledge.

Key Takeaways

  • Hardware segment led in revenue generation during 2023-2032.
  • K12 sector dominated, with fastest CAGR in same period.
  • Cloud deployment expected to grow throughout forecast period.
  • Business segment was market leader in 2023, with continued rapid growth expected.
  • North America held largest market share (36%) in 2023.
  • Europe accounted for 25% of revenue in 2023.
  • Asia-Pacific projected to have highest CAGR from 2023-2032.

Key Influencers in the EdTech Market Growth

Several key factors are shaping the expansion of the global EdTech market, notably:

  1. Rise in Distance Learning: The pandemic has significantly transformed how we learn and teach. Social distancing measures have prompted a shift towards online learning platforms. This shift is likely to persist, bolstered by the reopening of some educational institutions. Online education providers, offering various digital courses, are experiencing high demand.
  2. Mobile Technology Adoption: The swift uptake of mobile technology is revolutionizing the education technology landscape and the smart classroom market. The growth in mobile usage, coupled with the availability of affordable e-learning resources, is propelling the education sector forward. High rates of internet and mobile use are observed in regions like the United States, Europe, and the Commonwealth of Independent States. Furthermore, emerging markets are poised for considerable growth, given the critical role of mobile devices in education.
  3. Goals of EdTech: EdTech is focused on enhancing student learning outcomes, promoting personalized education, alleviating the workload of teachers, and reducing the cost of education. While many commend the use of technology in classrooms for its benefits, there are concerns about potential impersonal aspects and issues related to data privacy and tracking of students and teachers.

These factors collectively contribute to the dynamic and evolving nature of the global EdTech market.

Emerging Trends 

The EdTech market is experiencing dynamic changes, characterized by several key trends:

  1. Artificial Intelligence in Education: The integration of AI is transforming how STEM subjects and programming are taught. AI’s role in personalizing learning experiences and enhancing educational content is becoming increasingly significant.
  2. Immersive Technologies: Virtual and augmented realities are gaining momentum in the education sector. These technologies offer immersive and interactive learning experiences, making education more engaging and effective.
  3. Online Learning: The pandemic has significantly boosted the popularity of online tuition and language learning. These platforms are expected to maintain their growth trajectory as they continue to offer flexible and accessible learning options.
  4. Parent Portals: With the need for better communication between schools and parents, especially for home learning during school closures, parent portals are becoming more integral in daily educational practices.
  5. Adaptive Learning Technologies: EdTech products using adaptive learning algorithms and neural networks are gaining an edge over traditional learning software. These technologies provide tailored learning experiences and enable better feedback for parents.
  6. Affordable Tech and VR/AR: As technology becomes more cost-effective, virtual and augmented realities are poised for further growth. These tools are set to revolutionize the learning environment by providing more interactive and engaging experiences.
  7. Market Growth in Asia: Asia’s large educated population presents a significant opportunity for EdTech innovation and market expansion.

Regional Analysis

  • North America: This region, particularly the United States, dominated the market in 2022, holding over 36% of the revenue share. This is attributed to substantial investments from venture capitalists in the American EdTech sector.
  • Asia Pacific: Projected to exhibit the highest CAGR during the forecast period. China leads in regional market growth, closely followed by India and Japan. Government initiatives and increased private investment are major drivers of this growth.
  • Other Regions: Eastern Europe, Western Europe, Latin America, the Middle East, and Africa also show significant demand for EdTech solutions. The market in these areas is being driven by various factors, including government policies and private investments.

Overall, the global EdTech market is on an upward trajectory, fueled by technological advancements, changing educational needs due to the pandemic, and increasing investments in innovative educational solutions.

Market Drivers for EdTech

Education technology (EdTech) offers a range of benefits, significantly impacting how learning is accessed and delivered:

  1. Personalized Learning: EdTech accommodates different learning styles and speeds. While some students prefer reading, others benefit more from audio-visual materials. EdTech provides resources that cater to these diverse needs, enhancing learning effectiveness.
  2. Flexibility in Online Learning: Students engaging in online learning can study at their own pace, making education more adaptable to individual schedules. This flexibility is particularly beneficial for those with full-time jobs or other commitments, who might find attending traditional university courses challenging.
  3. Cost Savings: One of the most apparent advantages of EdTech is the potential for significant savings in education expenses. Online courses typically cost much less than attending traditional universities or colleges, making higher education and professional training more accessible and affordable.

Market Restraints in EdTech

However, there are challenges that need addressing:

  1. Cybersecurity Risks: With increased reliance on technology for teaching and operations, schools have become more vulnerable to cyberattacks. For instance, the education sector accounted for a significant portion of enterprise malware incidents, highlighting the need for robust cybersecurity measures in educational institutions.
  2. Limited Suitability for Young Children: EdTech is generally not recommended for children under five. Concerns exist about the development of social skills in students who rely solely on online learning. Experts suggest supplementing online education with activities that foster direct social interaction, such as field trips and sports.

Market Opportunities in EdTech

The evolution of EdTech has opened up numerous opportunities:

  1. Historical Progression: EdTech is not a new phenomenon. Its roots trace back to mid-20th century educational practices, like using copy machines and training films. With the advent of computers in the 1960s, schools began using them for subjects like math and spelling.
  2. Expansion of Online Education: The rise of the internet led to the creation of online courses, with significant enrollment numbers seen in the U.S. by 2010. Institutions like the Open University in the UK and the University of British Columbia in Canada were pioneers in offering direct communication between students and teachers online.
  3. Technological Innovations: Recent advancements have further enhanced EdTech’s accessibility and efficiency. Innovations now include educational “robots” for note-taking, blockchain tools for grading, and enhanced video conferencing and multimedia sources, all contributing to a more interactive and effective learning experience.

EdTech Market Segmentation

This report provides a detailed segmentation of the global EdTech market, offering insights into various aspects:

Type Insight: Hardware Segment Leads

  • The hardware segment, encompassing devices and learning management software, is projected to dominate the market.
  • Its growth is driven by increasing demand for learning management systems (LMS) in educational institutions, government agencies, and businesses.
  • LMSs, which have seen a surge in demand, enable users to create and manage educational content and courses, bolstering the market growth for these systems.

Sector Insight: K-12 Market Shows Strong Performance

  • The K-12 sector, especially with the integration of gamification, constituted about 35% of the market by 2022.
  • This growth is linked to the enhancement of student engagement and math skills through gamified learning experiences.
  • For instance, Matific introduced an AI-powered, gamified math learning platform in September 2022, illustrating this trend.

Deployment Insight: The Rise of Cloud Computing

  • Cloud-based IT solutions are gaining prominence due to the shift towards remote learning and digital education.
  • Cloud computing involves providing computing services like servers, storage, databases, networking, software, and analytics over the Internet.
  • The flexibility, security, and cost-effectiveness of cloud computing make it a preferred choice for educational institutions and EdTech companies.
  • Gamification in education, another emerging trend, adds a playful, competitive element to learning, enhancing engagement and motivation.

End-User Insight: Business Segment at the Forefront

  • In 2022, the business segment led the EdTech market and is expected to grow rapidly during 2023-2032.
  • This growth is fueled by collaborations between EdTech firms, educational institutes, and content creators.
  • Such partnerships are significantly contributing to the expansion of the digital education sector.

In summary, the global EdTech market is experiencing robust growth across various segments. Hardware and learning management systems are key drivers, with the K-12 sector showing notable advancement through gamification. The adoption of cloud computing reflects the market’s shift towards more flexible, secure, and cost-effective digital solutions. Finally, the business segment’s leadership in the market underscores the importance of collaborative efforts in driving the growth of digital education.

Market Segmentation

By Type

  • Hardware
  • Software
  • Content

By Sector

  • Preschool
  • K-12
  • Higher Education
  • Other Sectors

By Deployment

 

  • Cloud
  • On-Premises

By End User

  • Business
  • Consumer
  • Other End-Users

Competitive Landscape

The competitive landscape of the market has also been examined in this report. Some of the major players include.

  • Coursera Inc.
  • BYJU’S
  • Chegg, Inc.
  • Blackboard Inc.
  • Edutech
  • Google LLC
  • edX Inc.
  • Instructure, Inc.
  • Udacity, Inc.
  • upGrad Education Private Limited
  • Other Key Players.

 

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Archives, Education, Global Logistics, Global Trade Daily, Trucking

Understanding Vehicle Data and VIN Decoding: A Beginner’s Guide

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A crucial part of fleet management is tracking and comparing every vehicle’s performance through data analytics. Vehicle identification numbers also play a considerable role, providing standard information about each unit that helps with maintenance and adherence to safety regulations. 

This guide contains everything fleet managers should know about VIN decoding and understanding the data behind their vehicles.

Tracking Vehicle Performance

The old method of tracking commercial fleets primarily took place on spreadsheets. This outdated strategy is too simplistic to monitor vehicle performance, diagnose mechanical problems and identify inefficient parts or driving habits.

Technological advancements have made recording and assessing fleet vehicles’ data easier. Today’s fleet management software allows businesses to import the vehicle identification numbers of each unit and immediately gain access to dozens of insights, including these relevant metrics:

  • Vehicle speed
  • Miles per gallon
  • Fuel consumption
  • Weight of load
  • Braking intensity
  • Driving style
  • Idle time

Fleet management software connects to the vehicle’s black box — the device responsible for telematics. Contrary to popular belief, telematics isn’t the same as fleet management software, but the technologies are closely intertwined and have maximum effectiveness when utilized together.

Telematics describes the digital connection between informatics and telecommunication. These two essential management responsibilities have combined to form one role — sending and receiving information about the fleet over long distances. Logistics professionals use fleet management software to organize this information and make informed decisions.

The critical piece that makes fleet management software and telematics work is the vehicle identification number. The VIN signifies the individuality of every car on the road. Even if an entire fleet consists of the same make and model, each vehicle still has its own unique VIN.

Decoding and Utilizing VINs

The VIN is a 17-digit alphanumeric code that provides all of the car’s relevant background information. The National Highway Traffic Safety Administration standardized VINs in 1981 to create a reliable method of registering and tracking vehicles. Here’s a simplified breakdown of the 17 digits:

  • Characters 1-3: The world manufacturer identifier or where the vehicle was made
  • Characters 4-8: Weight, body dimensions, engine and transmission type
  • Character 9: Manufacturer’s security number
  • Character 10: The model’s year
  • Character 11: The main factory where the vehicle was assembled
  • Characters 12-17: The vehicle’s serial number

Manufacturers put the VIN in multiple locations to avoid confusion, including the dashboard, under the hood and in the owner’s manual. The assembly details are nice to know, but fleet managers should focus on the middle digits. These characters describe the vehicle’s unique attributes and help owners decide the proper driving and maintenance practices.

Knowing the VIN specs of each unit in a commercial fleet can be helpful in many scenarios. For example, fleet managers can refer to the VIN dimensions and assign a vehicle with the appropriate height or weight if a particular route passes over or under a bridge. 

When making repairs, technicians can use VINs to confirm the correct part size that needs maintenance. This information enables them to repair or replace engines, transmissions, wheels, tires and other crucial components to maximize the vehicle’s life span.

VINs also help businesses compare the performances of identical vehicles. If one truck has shown a recent decline, fleet managers can investigate its VIN, identify any subtle differences compared to other models and locate the source of the problem. If there are no differences, the driver is likely the problem and the manager can act accordingly.

Most importantly, VINs enable managers to upload information about their vehicles at lightning speed. They can simply copy and paste every VIN into their fleet management software and let it organize for them. VINs are the secret ingredients that make telematics and fleet management software work together.

Benefits of Understanding Vehicle Data

Utilizing VINs with telematics-based fleet management software has greatly simplified the jobs of supervisors and drivers alike. These are the most significant benefits of collecting and monitoring vehicle data from a fleet’s daily operations.

1. Improved Efficiency

Commercial vehicle drivers can encounter many efficiencies throughout the day. They might choose the least optimal route, get stuck in traffic or fall into bad driving habits that hurt the vehicle’s performance.

Telematics takes out the guesswork, helping managers identify the most efficient routes and driving habits employees should take. These adjustments save precious time and fuel while reducing greenhouse gas emissions.

Efficiency will become essential as fleets with alternative fuels reach the mainstream. The driving experience of these new vehicles will be foreign to fleet employees and the best routes will be less apparent, given the different mileage ranges. Telematics will adjust to the latest technology faster than humans and bring them up to speed.

2. Safer Work Environment

One of the most critical benefits of understanding fleet data is maximizing driver safety. Telematics technology can identify bad driving habits by tracking employee phone usage, average speeds and other potentially reckless behaviors. It can also spot mechanical issues as they emerge, helping fleet managers get unsafe vehicles off the roads for necessary repairs.

3. Massive Savings Potential

Greater safety and efficiency create massive savings potential. Fleet managers can save money on fuel, maintenance, parts, driver training and new vehicle purchases. Most auto insurance companies also offer safe driving discounts to their customers based on telematics. Businesses have nothing to lose and everything to gain from tracking their fleets.

4. Legal Settlements

If a commercial vehicle gets into an accident, telematics can help the company avoid a legal dispute. Many businesses install dashcams to prevent this exact situation from happening. The dashcam not only monitors the employee’s driving but also comes in handy to prove their innocence in an accident and shield the company from liability.

5. Asset Recovery

Fleet management software comes with a convenient GPS locator that sends alerts to the manager’s computer or mobile phone. Businesses can easily find and recover the vehicle if it gets stolen. Motor vehicle thefts have increased in recent years, so fleet managers need to work harder to protect their assets.

The More Insights, the Better

It will always be challenging to track dozens of vehicles at once, but VINs, telematics and fleet management software make the job easier. They enable fleet managers to collect information about each vehicle, supervise drivers and make the best decisions for the fleet’s long-term success. The more insights logistics professionals have, the better they can control their automobiles.

The Cost of Building a Mobile App for your Business in 2023
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The Cost of Building a Mobile App for your Business in 2023

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The digital landscape is changing rapidly, partly driven by the increased use of mobile devices. Smartphones are now used by half of the world’s population. This represents nearly 4 billion smartphone owners worldwide. These tech-savvy users are looking for quick and alternatives to do everything from banking to shopping on their phones. Mobile apps are a vital way to connect with this potential market. 

Mobile application development is a process that involves several activities, tasks, and processes. It’s more complex than putting some code together and saying you’re done; many different parts are involved in developing an app. And while the exact cost of mobile app development differs from one app development company to another, there are generally standard cost ranges associated with this process. 

What is the average cost of developing an app?

The exact cost of developing an app varies from project to project. However, you can expect the process to cost from $30,000 to $150,000, and when the project is more complex, you might have to pay even more than $300,000.

The vital thing to remember is that the cost of developing a mobile app isn’t just about the money. It is also essential to consider what you get for that money and the likelihood that your return on investment will be positive.

Why is the cost of developing an app so variable?

The cost of developing an app vary due to several different factors:

  1. The type of App you are developing will directly impact the price. Certain types of apps will cost more to build than others.
  2. Applications with complex features requiring more effort may cost more than those much more straightforward in terms of features and requirements.
  3. Developing products focusing on UX (User Experience) is a strong trend in different sectors. Thus, factors such as the choice of functionalities and their ease of use, organization of information, visual identity, and the structure as a whole define the quality of the mobile application and also impact the cost.

Next, you need to consider the company you work with to build your App. Not all businesses are created equal; some will be more expensive than others. It is also necessary to consider the region where your company is based, since the cost of living in some areas, such as São Paulo, is higher than in others.

From one order to another, the price of a mobile application can change completely. Indeed, if you have a very ambitious project requiring the intervention of experts, the estimate will inevitably increase.

For a high-level application, it is necessary to bring together developers, project managers, designers, or even strategists. So many trades and skills that weigh on the price of the application. However, the more money you invest in your product, the more likely you are that it will eventually become profitable.

Remember the post-development costs.

Post-development costs include all expenses from the moment the development phase of the application is completed. For example, there are annual fees for registering the mobile application on the Apple Store and Google Play. The costs are relatively different, depending on the blind chosen. Indeed, it is enough to pay $ 25 in one go at Google, while Apple asks for $ 99 each year.

Moreover, like websites, an application must work on its reference if it wishes to have visibility. Therefore, depending on the store (Google Play or Apple store), optimizing the application to appear in the first place will be necessary. To optimize the ranking criteria and position yourself in the first place, hiring mobile SEO specialists will be essential.

Finally, for an application to be viable, designers must regularly update it. It is also necessary to allocate a budget to the maintenance of the application to avoid users complaining about it, which could seriously harm it.

Now, while you are aware of the several factors that impact the cost of development, let us see if there’s any way to keep the costs under check.  

Reducing mobile app development costs with MVP

The Minimum Viable Product (MVP) is the pilot of a digital project. Its function is to test and evaluate the product’s viability – in this case, a mobile application.

In MVP, a minimum set of functionalities is presented to the user, containing only those essential to reach his objective with the application. From there, users’ opinions are collected to identify where the software can improve and what needs to be developed.

The objective is to accelerate the launch of a solution in the market, save time and money, and of course: identify the real opinions of users on how the launched application can be even better. Therefore, the chances of the product meeting consumers’ expectations are more significant with this initial project.

In this step, it is possible to determine and reduce the necessary production time and the costs involved in the budget.

Steps involved in developing a mobile application

App development is a very detailed process. Many different activities need to happen before an application can be created. Here are some of the key activities involved in app development:

  • Discovery and Planning: The discovery and planning phase involves understanding your project needs. This is where scope and risk management comes into play. Risk management is essential because you want to be sure to create a solution that is both viable and within budget.
  • Ideation and design: Once the requirements have been gathered and the project’s scope determined, the conception process can begin. During this phase, visual mockups are created to outline the application’s design.
  • Development: This is the phase where the application is created.
  • Deployment and testing: This is the phase where the application is launched and made available to the public.
  • Monitoring and maintenance: This is the phase where the App is monitored to ensure its correct functioning and any bugs or problems are immediately corrected.

Estimation only: Tasks involved in developing an app

The best way to get a cost estimate of developing an app is to create a list of all the tasks involved in building it. This will allow you to determine how much it will cost to develop your App and will make it easier to find a company or development team to work with.

You can then break down the tasks you’ve listed and assign an estimated cost to each. Remember, this is just an estimate, so make sure you budget for unexpected expenses.

Take the following steps to check the viability of a mobile app

  • Plan your product

List differentials, competitive advantages, shortcomings, and objectives. Finally, create a value proposition.

  • Identify your user

Create personas, and map their behavior, desires, and usage journey. Identify when and where she will use your software.

  • Define the product

Knowing the user and their pain establishes the minimum and priority features for reasonable use of the product.

  • Develop the application

Choose a team with skills to create and develop guaranteed quality solutions.

Wrapping Up

Our post aims to support startups and enterprises in developing innovative and robust mobile applications at an optimum budget. 

Now that you know what to consider while calculating the budget for your app project, it is time to hire a dedicated mobile app development company that can offer the fuel required for your company’s digital transformation.

 

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Archives, Education, Global Trade Daily, Technology

6 Areas of Interest for Progressive Investors in 2023

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The last few years haven’t been kind to the stock market. Stakeholders face an uphill battle trying to find profitable investment opportunities as big tech, cryptocurrency, and other once-hot markets have continued to fall. 

2023 could bring a breath of fresh air to progressive investors, as these six areas of interest might take a leap in the new year.

  • Talent Development

One of the main reasons for the current supply chain stagnation and economic decline is a global labor shortage across the board. White-collar and blue-collar industries alike desperately need more experienced hands. Companies have responded by investing more heavily in talent development.

About 60% of supply chain professionals report struggling to find workers with operational experience, according to a survey of 350 businesses conducted by global logistics firm DHL. In response to their hiring struggles, these businesses have sought to bolster their talent pipelines in several key ways:

  • Laying out clear career paths for new hires.
  • Providing more education and training opportunities.
  • Partnering with expert talent development specialists.
  • Building a stronger company culture.

These development efforts indicate that cloud software, video conferencing applications, and other online collaboration tools will remain profitable. These tools helped remote and hybrid work become more widely available employment options, and they could do the same for talent development in traditional work environments.

Training the next crop of laborers will be crucial for supply chains to return to normal operations. 2023 looks to be a big year for talent development as businesses seek more drastic measures to get their workforces back to full strength.

  • Renewable Energy Storage

The shift from fossil fuels to renewable energy is gaining momentum as we enter 2023. 

Government intervention has played an important role, with legislation such as the Inflation Reduction Act. This new bill seeks to build a clean energy economy with solar panels, wind turbines, and battery manufacturing plants.

As the energy transition continues, investments in storage will expand by necessity. Solar and wind energy can be sporadic depending on the weather, which means we must find ways to save excess energy from these sources for future use. This is perhaps the greatest obstacle preventing the widespread adoption of renewable energy.

Additionally, the batteries required to power large-scale solar and wind energy systems are heavy and fragile. A robust storage system is essential for their long-term functionality. Energy storage companies and manufacturers who supply the materials will naturally grow in demand as more families and businesses install their own renewable energy systems.

  • Electric Vehicles

Electric vehicles also have a promising outlook in 2023. Sales reached all-time highs in 2022 and market analysts project that EVs will make up a majority of vehicle sales by 2030. Investing in EV manufacturers, including Tesla, General Motors, and Ford, will be a safe bet as these companies continue to put out new and improved models.

However, there might be greater profit potential in a few other areas. The rise of eco-friendly commercial fleets offers a potential solution to our stagnant supply chains. Lithium stocks will become more profitable as lithium-ion battery production ramps up to meet the demand for EVs. The global charging infrastructure also needs major improvements.

  • Campgrounds

The swift rise in EV sales is also strong evidence of a widespread shift in consumer attitudes. People are more eco-conscious than ever, which means they’re spending more time doing outdoor activities. People are also investing more time and money in their physical and mental well-being in the wake of COVID-19.

A ripple effect of investment opportunities could happen as EVs become mainstream. With more people on the roads, profitable investments will emerge in the travel, tourism and hospitality industries. Shares in vacation rentals, hotels, cruise ships, and resorts all expect to see growth, especially in emerging markets overseas.

As a result of shifting consumer attitudes, the outlook for campgrounds and other outdoor recreation properties looks promising. 2022 showed definite signs of life, as 50% of surveyed campers booked a trip in the last year, and that number is expected to increase in 2023.

  • Machine Automation

Inefficient technology is one of the main factors holding back our supply chains. A digital transformation could be on the horizon, though, as investments in machine automation are ramping up. This trend is happening across a wide range of industries, from higher education to retail to the health care sector.

Emerging automated tools like order management software make transactions more accurate and time-efficient. Rather than manually sending out hundreds of POs and invoices, we can let the software do these menial tasks for us. Shipments can go out and deliveries can come in more quickly with minimal human error involved.

Machine automation also increases visibility along the supply chain. High-volume supply chains are prone to many errors, especially when they go international. AI-powered tracking devices can send status alerts across the world to notify businesses about any damage or delays. This technology helps managers make timely adjustments and keep their products moving.

  • Web 3.0

2022 has been a rough year for big tech stocks, losing almost 30% of their value on the Nasdaq. High inflation and interest rates are the main reasons for big tech’s poor performance, but another reason is more intriguing – a lack of public trust in large corporations. Fewer people are enthusiastic about the idea of Apple, Google, and Amazon controlling the digital world.

In an attempt to level the playing field, investments in Web 3.0 have ramped up. The metaverse, Web 3.0’s defining feature, could decentralize the internet and open up new online worlds in both employment and educational settings. Communication, teamwork, and productivity all can improve inside these virtual workspaces.

Other industries that contribute to Web 3.0’s infrastructure are also interesting investments. Semiconductor companies such as Nvidia and Qualcomm will see a spike in demand. Internet providers will stay busy keeping the metaverse’s systems running. Cryptocurrency declined in 2022, but crypto trading services will remain profitable so long as the metaverse exists.

Producers of virtual reality (VR) and augmented reality (AR) technologies will also grow as the metaverse becomes more advanced. These tools have already begun to revolutionize employee training, as they can simulate real environments and scenarios to bring new hires up to speed.

Once again, a variety of industries stand to benefit from the rise of the metaverse. Students can receive real lessons instead of lectures. Health care employees can perform mock procedures before attempting the real thing. Retailers and supply chain managers can virtually stock their inventories and identify the most efficient organization methods.

Big Changes on the Horizon in 2023

2022 wasn’t kind to most investors. Economic conditions got worse and stocks that were previously rock-solid have become vulnerable. However, big changes are on the horizon. Advancements in technology and renewable energy could bring new life to our supply chains, bring the workforce back to full strength, and give power back to the stakeholders.

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7 Things to Plan When Choosing a Third-Party Selling Strategy

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The business landscape is looking better and better for businesses that want to sell online. Morgan Stanley predicts that the global e-commerce market could reach $5.4 trillion by 2026. If it does, that would represent a nearly 64% increase from 2022 figures—in just four years’ time.

This should make you take notice if you’re involved in e-commerce or want to be soon. It’s an enormous pie. Yet getting a slice isn’t as easy as it might seem. There are many obstacles and challenges involved with trying to gain momentum as an online seller. Perhaps the biggest of all is cutting through the noise and getting your organic and paid content seen.

It can be very difficult to work your way up to the top of search engine results. Even if your company already has a little visibility and traction, you may want to take a proven tactic to break into the mix: Move to a third-party selling strategy.

Third-party selling is exactly what it sounds like. Your company sells merchandise via a third-party site rather than on your own site. (Certainly, you can still sell on your own site, too.) The benefits can be huge, but only if you take a little time to plan your approach. Below are several tips to keep in mind.

  1. Study potential third-party seller sites.

Before assuming that any third-party seller is the right fit for your products, get to know what it’s like to partner with the seller. Go on a full-blown investigation, right down to making a list of pros and cons. The more educated you are upfront, the fewer surprises you’ll experience later.

For instance, say you want to get involved with Amazon. It’s a great choice, given that Amazon is the largest third-party selling platform on the planet. Unless you do a deep dive on everything from distributor costs to listings and catalogs, you can’t create a well-informed Amazon marketing strategy first draft. Or, if you can’t spare the time, hire a consultant to help you get a fast education on your top third-party sellers.

  1. Decide how much e-commerce control you want.

Third-party sellers can provide you with a ton of services such as warehousing and drop-shipping capabilities. However, the more services you need, the lower your profit margins are likely to go. Therefore, you’ll want to start thinking about how much control you want to keep. Even if a third-party seller promises lots of add-ons, you may still prefer to keep some processes in-house.

Let’s say you sell a boutique line of women’s clothing. It may be important for you to keep all the packaging and shipping on-site. In that case, you want your third-party to take care of nearly everything up until the fulfillment. From that point on, your team takes over.

  1. Upgrade all dated visual content.

Unless you have superb images of your content, set aside money for better photos. You don’t need to hire an agency or professional photographer, but make sure your products look amazing. People scroll quickly when they’re shopping digitally. You want them to be captivated by what they see.

Some third-party sellers allow you to upload both traditional images and videos. Take advantage of this opportunity. Wyzowl research from 2021 shows nearly eight out of 10 marketers have found a link between video and increased sales. Video gives you the chance to show the product in action, answer common questions, and build some branding. Nothing brings merchandise to life faster than a short but memorable marketing video.

  1. Ensure a third-party platform can sell your products where you want.

You can’t gain as much from e-commerce if you can’t sell to anyone, anywhere. Never assume that a third-party seller can automatically sell your product across international lines. Many companies have ended up surprised by how few places they could sell their products.

Along these lines, be sure your products are even allowed to be sold abroad. Case in point: If your product is made of wood, you may have to jump through hoops to sell it to Australian consumers. This doesn’t mean it can’t be done, but you have to be aware of possible hurdles.

  1. Factor in all the “fine print.”

E-commerce can be extraordinarily effective in ramping up your revenue streams. Unfortunately, countless companies have ended up selling millions of dollars’ worth of products online—only to see very little in terms of profit. Frequently, the underlying reason was that they failed to factor in all the “fine print” costs.

When budgeting as part of your e-commerce third-party selling strategy, always include all the obvious and hidden costs. These costs could be anything from third-party logistics to advertising. Make sure that you’re folding returns into the mix. Touting free shipping and free returns may make people buy but plenty of businesses have found out the hard way that paying for refunds can wipe out margins.

  1. Protect the name of your brand.

Not all companies that sell on third-party sites offer consumers branded merchandise. If you do, plan to protect your brand. Otherwise, nefarious sellers may try to besmirch your brand name through a variety of means, including posting fake negative reviews or flagging your product content. (This is another reason to work with a third-party selling consultant if you anticipate selling millions in merchandise online each year.)

Software programs can help you keep tabs on your brand across digital channels. The more you know about what’s happening with your brand, the easier it will be to shut down issues. In addition to protecting your brand, construct a brand personality and branded content guidelines. That way, everything you put online will have a sense of alignment.

  1. Watch your data in real time.

Watching the real-time developments of your e-commerce sales can feel a lot like watching the stock market ticker. Though you shouldn’t get too scared by dips, you should find a way to stay on top of any anomalies. Those anomalies might not be anything important, but you never know.

You don’t need to ask a team member to stay glued to digital reports. However, you should set up analytics software that can be monitored 24/7. Choose your top KPIs and track them to get a baseline. Once you have your baseline, you can note any variations quickly and, if desired, take action.

Before you think you need to turn your website into an e-commerce store, think again. Third-party sellers have done all the hard work for you. Yes, you’ll pay for their expertise and “real estate.” But with the right planning, you’ll recover your investment in the form of global sales.

Author’s Bio

Jason Streiff is president of Streiff Marketing, which has deep roots in the Amazon seller and vendor space and helps brands succeed on Amazon Retail and Amazon Marketplace.

 

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Archives, Education, Global Trade Daily, Global Trader Profile

Firms will Struggle to Differentiate between Contract and Full-Time Employees 

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The line between a contractor and an employee may get even blurrier. The US Department of Labor has proposed to make it more difficult for someone to be classified as an independent contractor. This is expected to hit several sectors especially hard – namely the transport of goods and people. 

The Department of Labor proposal is vague. For example, contractors would be moved to full employee status once it is deemed they are “economically dependent” on a company. What constitutes dependency is not clear. Some studies suggest full-time employees (as opposed to contractors) can cost a company up to 30% more. Yet, as the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) suggests, many employers take advantage of misclassifying workers who are then deprived of federal labor protections. If employees are not aware of their rights these relationships can go undetected. 

Upwork, a freelancing marketplace, revealed in a December 2021 study that roughly 60 million people (over one-third of US workers) engaged in some type of freelance work over the previous 12 months. Many worker advocacy groups are understandably championing the Department of Labor’s proposal. Rideshare Drivers United is a group centered on protecting contract driver conditions. They frequently cite that although many Lyft and Uber drivers can make upwards of $60 per hour, their take-home pay after deducting insurance, car payments, and gas is at a minimum wage level. 

On the other end, the Associated Builders and Contractors and the largest US business lobbying group, the US Chamber of Commerce, argue that those workers who want to preserve their flexibility would be harmed by being forced into a strict full-time schedule. After all, businesses like Uber and Lyft as well as trucking companies that count on contract drivers have structured their operations on flexible scheduling. Many argue they wouldn’t be profitable otherwise. 

The prevailing argument for those policymakers and politicians advocating for reducing contract work is it is exploitative. While there is research to suggest some contractors would elect full-time employee status, that doesn’t necessarily bolster the case that the government should regulate it. Other surveys and studies such as the heavily cited BRX Research survey (1,200 people in 2019) revealed that the vast majority of respondents indicated gig or contract work was not their primary source of income. Moreover, the youngest cohort of this study was seemingly using the flexibility of their gig jobs to supplement their main employment. 

Like any law, the unintended consequences are where the focus should be. It does not seem like those advocating for the current iteration of the proposal have pondered the extent to which mandating contractors become employees could affect not only the flexibility of the position but employers as well. 

 

   

Hiring a Reliability Consultant
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Hiring a Reliability Consultant: 4 Important Things to Consider

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Reliability is a critical factor in the success of any industrial operation. Downtime can negatively affect the productivity and profitability of a company. A reliable industrial operation is one that is able to maintain consistent output, even in the face of unexpected obstacles. 

It is often considered as a key performance indicator (KPI) of an organization’s asset management system. The goal of achieving high industrial reliability is to minimize the risk of equipment failures and unplanned downtime.

There are many factors that contribute to industrial reliability, from the quality of the equipment to the skill of the operators. But one of the most important is maintenance management. However, in this article, we will share some ideas on how you can hire a reliability consultant.

Who Is Reliability Consultant? 

An industrial reliability consultant is a professional who helps organizations improve their operations and processes through the use of reliability engineering principles.

Reliability consultants typically have experience in a wide range of industries and businesses, and they use this knowledge to help their clients identify areas where they can improve their own operations.

Reliability consulting can be an extremely valuable resource for organizations that are looking to improve their overall performance. By working with a consultant, organizations can get an expert opinion on what changes need to be made in order to achieve better results.

In addition, consultants can provide guidance, reliability training and support throughout the implementation process, helping to ensure that the changes are made effectively and efficiently. 

Organizations that are interested in improving their reliability should consider working with an experienced consultant. By doing so, they can gain insights into best practices for reliability improvement and receive support during the implementation process.

In addition, by providing training on new procedures, they can help employees become more efficient and knowledgeable about the production process.

How Reliability Consultants Help in Industrial Maintenance

An industrial reliability consultant can help your business in a number of ways when it comes to industrial maintenance. They can help in industrial maintenance by providing analysis and recommendations to improve equipment reliability.

For one, a consultant can help you develop a maintenance management plan. This plan will take into account all of the factors that contribute to downtime in your facility, including equipment failures, human error, and environmental conditions. By understanding the root cause of these problems, you can develop strategies to prevent them from happening in the first place.

They also develop and implement preventative maintenance programs to improve equipment uptime. In addition, they work with other departments within the company to ensure that maintenance activities are properly coordinated. This may include recommendations for preventive maintenance, which can help avoid costly downtime and repairs.

In addition, a reliability consultant can also help you troubleshoot problems that occur. By identifying issues quickly and efficiently, you can avoid costly downtime and keep your operation running smoothly. 

Finally, a consultant can also provide training for your staff on best practices for maintenance and repair.

What to Consider When You Hire a Reliability Consultant

When you are looking to improve the reliability of your organization, you may consider hiring a reliability consultant. Here are a few things to keep in mind when you are making this decision:

1. Coursework and Certifications

When you are thinking about hiring a reliability consultant, there are several things that you should keep in mind. The first is previous coursework and certifications. It is important to make sure that the consultant you are considering has the necessary education and training in the field of reliability engineering. Additionally, they should also have experience working with other businesses in your industry.  This would ensure that they understand your industry-specific needs.

2. Leadership Skills

When it comes to finding and hiring a reliability consultant, it is important to consider leadership skills. Here are a few tips on how to identify and assess leadership skills in a potential consultant:

  • Look for evidence of strong leadership qualities in the consultant’s past work experience. This may include instances of successful project management, team building, or conflict resolution.
  • Ask the consultant for specific examples of instances where they used their leadership skills to achieve success. This will help you get a better sense of their true capabilities.
  • Pay attention to the consultant’s communication style and overall demeanor during your interactions with them. Do they come across as confident and competent? Do they seem able to handle difficult situations calmly and effectively?

By keeping these factors in mind, you can be sure to find a reliability consultant with the strong leadership skills you need for your organization.

3. In-depth Knowledge of Industrial maintenance

You need to make sure the consultant has a deep understanding of industrial maintenance when hiring one. This includes a thorough plant management expertise that would promote overall reliability.  The consultant should also be up-to-date on the latest industry standards and practices.

Another important thing to consider is the consultant’s ability to communicate effectively with both management and frontline workers. The consultant should be able to explain complex technical concepts in plain language. They should also be able to listen to feedback and incorporate it into their recommendations.

4. Tech-Savvy Aptitudes

In the 21st century, a reliability consultant should have technology skills and knowledge to help your business stay ahead of the curve. Here are three tips on how to hire a reliability consultant with tech-savvy aptitudes:

  • Look for a consultant who is up-to-date on technology trends: A reliable consultant should be able to keep up with the latest technology advancements and understand how they can be applied to your business.
  • Choose a consultant who has experience implementing new technologies: A good way to gauge a potential consultant’s tech-savvy abilities is by asking about past projects where they’ve successfully implemented new technologies.
  • Ask for recommendations from other businesses in your industry: If you know other businesses that have hired reliability consultants, ask them for recommendations on who you should contact.

Conclusion

When considering hiring a reliability consultant, it is important to keep in mind the company’s needs and objectives, the consultant’s qualifications and experience, and the cost. With careful consideration, hiring a reliability consultant can be a valuable investment for any business. They can help take your business from where it is to what it can be and help cut down costs, prioritize your goals, streamline operations.

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How to Become an Award-Winning Workplace

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Every business seeks to provide a desirable environment, but it takes more than desire to become an award-winning workplace. High performing organizations put their people first, the leaders are consistently engaging their team members, and the employees are invested in the overall vision of the company.

The pathway to becoming a Top Workplace may look different, but some specific elements are constant within every winning organization. Below are five specific keys we have implemented to get to where we are today.

Values Based Leadership

“Our main philosophy is simple. We want people to grow with us, to be happy, and to be healthy.” -Alex Dovgal

Some think a strong visionary leader is necessary to be successful. What many don’t realize is vision doesn’t guide the momentum, values do. This is because the values determine the overall direction and the day-to-day operational decisions.

All organizations have a set of values, whether they are clearly communicated or not. Therein lies the danger of values that aren’t communicated effectively. The values need to be clearly communicated and consistently evaluated to ensure they are in line with the decisions being made by the leadership.

Our values are as follows: Diversity, Safety, Innovation, Growth, Health, Happiness.

Keep the Main Thing, the Main Thing

In a boardroom meeting somewhere right now there’s a manager being praised for saving the company money, even though they are decreasing the experience for the customer. Cutting costs doesn’t always mean the company is moving forward or getting ahead.

Our main thing is to be a place where drivers and office employees enjoy working. Therefore, we offer more compensation than our competitors, even in the midst of a trucking recession. We also built a gym and an on-site hotel for our drivers and office employees. Companies that keep the main priorities intact will prevail, regardless of the difficulties along the way. Stay laser focused on ways to move the main thing forward, whatever your main thing is.

One more note on this; if your main thing is to make money, find a new main thing.

Involved Leaders

Nobody likes a micromanager. There’s a stark contrast between a manager who is too involved, and a leader who communicates effectively. Even leaders who overcommunicate can be invaluable, while managers who need to control everything will soon have nobody to lead.

That’s why Clued-in leaders who know the pulse of their team and regularly communicate are a major asset in connecting employees with the company’s mission and vision. Here are some good self-assessment questions to find out if you are a clued-in leader:

  • Do I clearly promote an open-door policy?
  • Do I practice active listening?
  • Do I ask for input and feedback from everyone that I’m leading, or only a select few?
  • How often am I holding one-on-one or small group meetings?

If it’s Rewarded, it’s Repeated

This is known as the cardinal rule of behavior change. Progress is achieved by rewarding the right things and expelling everything else. Benefits and a competitive salary are a good start, but top workplaces don’t stop there.

One way we reward progress for office employees is with a quarterly bonus revolving around key performance indicators (KPIs). These indicators are established by the employees and managers together and reviewed at the end of each quarter. Each quarter we ask, “what do you need to be more efficient?” If an employee asks for something to help their performance, they will get it.

Drivers have a couple of opportunities each month to earn bonuses based on specific metrics made by our safety, fleet, dispatch, and accounting departments. Drivers who follow those KPIs can get a bonus. In addition, we offer our “best drivers of the month.” And lastly, we offer pay increases for drivers who have been with us for specific amounts of time and remain in good standing.

Grow Your People

Empowering employees to reach their full potential is an essential part of retaining employees. People want leaders who help them stay motivated. A top-paying company will eventually lose value-adding employees if they aren’t growing. Companies need to find ways to add value to their employees.

One way we add value to our drivers is with our training. Right now, the dry van market is very poor. A lot of dry van drivers are leaving the industry. We offer trailer change training so drivers can master driving a refrigerated trailer or a flatbed trailer. This increases the driver’s earnings, the company’s earnings, and makes the driver more marketable if they ever want to become an owner-operator or fleet owner.

All in all, everyone wants to be a part of something bigger than themselves. At the end of the day, we just want to make a difference in this life. When companies hold true to a good mission, there is no end to what can be achieved. Being recognized as a Top Workplace is an honor! But the real reward is in knowing that the people who belong to your workplace are happy to be there.

 

Alt tag: A well-run warehouse thanks to your efforts to optimize your eCommerce distribution center
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How to Optimize Your eCommerce Distribution Center

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If you want your eCommerce business to run as smoothly as possible, then your distribution center needs to work like a well-oiled machine. To this end, let’s take a look at how to optimize your eCommerce distribution center!

Work on optimal warehouse layout

The first step to optimizing your eCommerce distribution center is having a warehouse with an optimal layout! The organization of your warehouse has a lot of impact on how quickly your employees can work. If things are not properly organized, they may need to waste a lot of time transporting goods to and from trucks. That is why trucks should be capable of getting relatively close to the bulk of your goods. At the same time, make sure that the loading and unloading area is not located in a highly congested part of your warehouse. That’s just looking for trouble since it would only be a matter of time before someone gets hurt. These considerations should make it obvious why the warehouse layout is one of the main factors to consider when acquiring a new warehouse. 

Invest in employee training

As logistics experts like to point out, your employees are the lifeline of your business. Even when trying to optimize your eCommerce distribution center, this remains true. In reality, it is even more critical for your employees to have the required training. An untrained workforce performs tasks slower, and the chance of human error skyrockets. That may be fine in some other positions. Still, when you rely on them to pack, unpack and transport goods, errors typically result in damaged goods and hurt employees, which means that you suffer financial losses and a sudden decrease in the workforce. It is much better to invest your money into training instead and get consistent, reliable results. The increased competency will also do wonders for your optimization since everything will be done faster and more efficiently.

Emphasize packing efficiently

There are few tasks as troublesome for eCommerce distribution centers as packaging. Even the best warehouse management systems cannot perfect the process. Amazon, for example, relies on software that dictates which box and how much cushioning an item requires based on its pre-entered dimensions. And even such a sophisticated system produces errors when packing larger items when fully assembled, resulting in massively oversized boxes filled with insufficient cushioning. So, what you should emphasize to your employees instead is trying to pack efficiently. The training we’ve already recommended should help a lot on this front. Your employees can understand how much cushioning to use and the optimal box size for an item. Of course, in the end, a lot of experience will be required to get to the most optimal packing, but that’s the price of doing business.

Make sure everything is properly labeled and organized

Finding your way through a warehouse can be a frustrating experience. With familiarity, things get easier. However, as your business grows and you hire new employees, even with training, you can’t expect them to know everything. Similarly, your product catalog might change, necessitating changes in the warehouse organization. Even experienced employees can falter and take longer to find the right items.

For this reason, one of the best ways to optimize your eCommerce distribution center is to rely on the good old labels. Have your product placement areas marked out. And keep a chart of your warehouse with all the labels on it, too. That will let your employees easily navigate the facility and find everything they need during their workday, which should speed up the running of your warehouse significantly!

The right way to store your products

This one will take a bit more effort from your managers. But, there is an optimal way to store your goods. Namely, the popular and frequently bought items must be placed in the most easily accessible areas. On the other hand, the less popular products can be placed further in the back. This way, your employees will need to waste a lot less time fetching and packaging the items they are likely to handle most often. And you can take one step further to the most optimal working of your warehouse you can achieve!

Make use of the right software

If you take the time to learn about the world of logistics, then our final advice on optimizing your eCommerce distribution center might seem obvious. Namely, the use of automation and management software! The right software makes everything so much easier. It speeds up the data gathering and analysis processes and provides optimal solutions to your problems. It can perfectly organize your delivery and shipping schedules and even offer insight into the optimal organization of your warehouse’s goods. In other words, it is always wise to invest in software!

Final comment

Even knowing how to optimize your eCommerce distribution center, you will not be able to perfect things overnight. Almost every piece of advice we’ve offered here takes time to implement, especially regarding employee training! It will take time before your business is genuinely optimized, but it will be worth the effort.

Author bio

Connor Welkin has worked as a warehouse and storage facility manager and has extensive logistics experience. He also closely works with the moving experts from vanexpressnj.com to meet all their storage needs.

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Archives, Global Logistics, Global Trade Daily, Warehousing

8 Factors to Consider When Acquiring a New Warehouse

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The supply chain sector is booming. As industries grow and eCommerce drives demand for logistics services, many organizations find themselves needing more room to manage new volumes. For many, that means acquiring a new warehouse.

While industrial vacancy rates have neared historic lows as warehousing demand booms, some companies manage to find available spaces. However, even in this hot market, it’s inadvisable to rush into acquiring the first available warehouse. Here are eight essential factors to consider when expanding into a new space.

1. Purpose for Expansion

The first and arguably most important thing to keep in mind is the new warehouse’s purpose. How the company will ultimately use the facility impacts virtually every other aspect, so it’s crucial to define this early and in detail.

Some organizations may want a new warehouse to provide more storage for certain high-volume products. Others may wish to create a dedicated space for reverse logistics workflows. While both scenarios may warrant a new building, their specific needs for the property will vary.

Similarly, consider the kinds of products, workflows and machinery the warehouse will host. For example, businesses can only store 60 gallons of flammable liquids in any cabinet and hold only three cabinets in one room. Consequently, a warehouse storing these items may need more space than one with an equal amount of non-flammable goods.

2. Location

Location is a critical factor for any piece of real estate, but it’s crucial for warehouses. Where the facility is will impact how quickly suppliers can stock it and how fast shipping is for customers. The cost of those ingoing and outgoing shipments will vary depending on the location, too.

To find the optimal location, first consider the kinds of goods the facility will manage. Then, pinpoint where the target market for those products is and compare that to suppliers’ locations. An ideal warehouse position will lie relatively equidistant from the source and the destination.

It’s also important to consider the available workforce in the area. Property may cost less in more remote locations, but it’ll be harder to find enough staff to run it.

3. Accessibility

Similarly, logistics companies should go over the accessibility of the warehouse and its location. With more than 70% of all goods sold in the U.S. traveling by truck, the facility will rely on highways. Consequently, being close to interstate exits or other major roads will help streamline operations and reduce shipping costs.

It should also be reasonably easy for employees and large trucks to reach the warehouse. Small access roads with sharp turns or poor pavement will make it less convenient to get there, hindering workforce productivity and impacting shipments. Be sure to note peak traffic hours and how congested the area can become, as well.

4. Size and Capacity

Next, businesses should consider prospective warehouses’ size and capacity. Once again, this ties back to its end purpose. If the facility is mainly handling reverse logistics workflows, space isn’t as pressing a concern as if it were managing peak shipping season volumes.

If a company is growing quickly and has reason to believe that growth will continue, it may be best to get a space that’s bigger than its current needs. This way, it’ll have room to expand in the future. On the other hand, if an area is too large, its rent or property taxes may be too high for the company to justify.

5. Financing 

As businesses compare their options, they should keep financing in mind. That includes more than just a general budget. Before considering a purchase, organizations need a defined finance plan, including potential loan sources and terms.

Financing a commercial property loan is often more challenging than people think. Several years ago, as much as 52% of commercial real estate realtors reported having clients fail to secure financing for a commercial property. Given how common that is, companies should ensure they have enough assets in place to secure a loan ahead of time.

Offering a larger down payment can help increase a business’s chance of getting a loan. Companies should also prepare in the months leading up to the financing talks to ensure they have enough liquid capital.

6. Staffing

Another critical factor some organizations may overlook is the warehouse’s staffing needs. Recent surveys show that 73% of warehouse employers struggle to find workers. Therefore, it may take careful planning and considerable time to ensure a warehouse has enough employees to staff it.

Businesses should keep this tight labor market in mind when planning to expand. They may need to automate more processes than they can staff, which carries different space needs. If they know how many workers they can expect to have in the beginning, they must ensure they have enough room for them, including sufficient parking.

7. State of Repair

The facility’s state of repair is another thing to consider. Any property likely needs some adjustments before it’s ready for companies to use, but if it requires too much work, it may not be worth it. Repairs and maintenance make an otherwise affordable warehouse too expensive — companies should include these considerations in their budgets.

It’s important to note how much repairs will cost and how long they’ll take. Lengthy maintenance will delay the facility’s return on investment, which may make it unaffordable. In some cases, organizations may be able to put some repairs off, but only if they don’t impact workplace safety or productivity.

8. Hazards

Finally, companies should look at any safety hazards on the property. Work-related injuries and fatalities are leading concerns in industrial workplaces and cost the nation $171 billion in 2019 alone. If a building is too hazardous, it could put workers in unnecessary danger or increase repair costs beyond a business’s budget.

When inspecting a property, note any slippery surfaces, aging infrastructure, limited visibility and similar workplace hazards. Some may be excusable but require specific signage and safety protocols once the facility is in use.

It’s also vital to consider more significant environmental hazards. Warehouses in some areas may be at higher risk of hurricanes, tornadoes or other natural disasters, requiring specific safety measures. Companies must understand all these risk factors before buying a property.

Consider Warehouse Properties Carefully Before Buying

Acquiring a new warehouse can be an excellent move for a logistics business. However, that decision must be a careful one if it hopes to make the most of it.

These eight factors can help organizations find and manage the ideal property properly. They can then expand safely and efficiently, ensuring future growth with minimal disruption.