by 
7th July 2024
Factories of the Future: What to Expect
When you think of industrial factories, what is the first thing that comes to mind? Big, grey, and boring are probably it. Unlike residential and commercial properties where the “fun” and “measurable” factor of amenities and designs play a crucial role, there are many factors that determine what makes a good industrial factory as well.
While residential and commercial properties serve as shelters and venues for business operations, industrial properties play a pivotal role in a growing nation. The emergence of Malaysia’s Digital Free Trade Zone, touted as the world’s first, aims to bolster interest in the country’s industrial properties. This initiative facilitates seamless cross-border trade, positions Malaysia as a regional e-commerce and e-fulfillment hub, and boosts exports of Malaysian SMEs via e-commerce.
Comprising three components, it includes an e-Fulfilment hub aiding SMEs to export goods easily with leading fulfillment service providers, a Satellite Services Hub connecting SMEs with services like financing and last-mile fulfillment insurance, and a non-physical e-Services Platform managing cargo clearance and other processes digitally. Alibaba Group’s acquisition of a free-trade zone in KLIA Aeropolis underscores its potential to handle up to US$65 billion worth of goods, highlighting the crucial synergy between digital operations and physical factories.
What Sets Apart a Good Industrial Factory?
1. Mega Storage Facility
Advanced software applications enable manufacturers and logistics companies to catalog and locate items efficiently. The rise of e-commerce has heightened demand for storage space, resulting in larger warehouses with multiple levels of mezzanine floors and external access points to maximize navigable space.
2. Super Computers
Centralized systems employing real-time tracking coordinate with RFID chips and barcodes, ensuring efficiency and precision in increasingly complex operations. Future warehouses will rely on integrated inventory management, optimizing production-to-supply chain processes to fulfill customer orders just in time.
3. Conversion of Commercial Buildings into Last-Mile Delivery Centers
The demand for immediate deliveries prompts e-commerce and logistics companies to convert less vibrant commercial buildings into last-mile delivery centers. Urban warehouses are evolving vertically and horizontally, potentially reshaping warehouse design.
4. Last-Mile Cold Storage
Currently limited to hypermarkets and wholesalers, there’s potential for online grocery shopping and meal delivery services to expand into this sector. Efficient cold storage solutions are essential to maintain product quality and reduce energy consumption.
5. Smart Design Warehouses
Future warehouse designs will feature multiple entry points for parallel vehicle access, numerous loading bays, onsite security and firefighting services, fleet and warehouse management integration, technical support teams, and refueling areas. Automation and drone technologies promise further advancements in warehouse operations.
6. Other Key Considerations
High-speed internet connectivity, proximity to labor supply and talent pools in the manufacturing industry, and the development of smart factories with automated processes are becoming essential in modern industrial settings.
In conclusion, as competition intensifies in online businesses, differentiation in service, particularly speed of delivery, is crucial for customer retention. The integration of cutting-edge technologies and efficient logistical setups will define the factories of the future, supporting both digital and physical business operations.
Our expertise ensures you get a property that meets your specifications and budget. We stay updated on the latest trends and insights, helping you spot strategic locations and suitable industrial properties. Contact us at myindustrialspecialist for more information and to start your factory investment journey.
