Should Distribution Companies Build Their Own Warehouses?

People who plan to launch a distribution company will have many difficult decisions to make. However, one of the most critical relates to their premises. Entrepreneurs can either hire an established warehouse or build one from scratch. Most companies tend to select the first option as that seems easier. Still, in this article, we’re going to take a look at the possibility of constructing something brand new. As readers will discover, that choice could bring many benefits to their operations. Also, it doesn’t cost as much as most people will think.

Finding suitable land

Before anyone can build a warehouse, the company will have to purchase some land suitable for the job. This website and others like it allow people to take a look at available areas of land online. However, there are also real estate specialists that business owners could contact. Think about the location first and foremost, and then consider the price. It’s important that distribution companies place themselves near to a major city. Still, that doesn’t mean they have to get too close. Land prices are often low just outside of the most desirable areas. Possible methods for reducing the cost of land include:

  • Negotiating a better price with the owner
  • Buying the land from an auction
  • Sharing land with another firm

Purchasing necessary materials

There is no getting away from the fact that entrepreneurs will have to invest in materials for their warehouse. That is going to require a lot of money, but it’s still cheaper than buying something already built or renting for years. This post on Resdev highlights the most suitable type of flooring for modern warehouses. A quick Google search should give people an idea of how much they’ll have to pay for breeze blocks and bricks. After that, business owners just have to think about pipework and electrics. However, both of those things are cheap if people shop around and avoid getting ripped off.

Contacting local construction experts

There are many reasons why company bosses should employ construction specialists from the local area. For people who’ve never considered that before, the benefits include:

  • Better timekeeping
  • Lower prices
  • And the company won’t want to ruin their local reputation

Again, just use Google or speak to people living in the local area to make some connections. No matter where the land is based, there is going to be a building firm within a few miles. It’s still important to check their history and read testimonials. The last thing anyone wants is for their warehouse to fall down due to shoddy craft. Still, most professionals in the industry work to a reasonable standard.

To answer the question posed in the title of this post, yes, distribution companies should build warehouses. The best thing about that idea is that the construct becomes a business asset. That means it’s possible to knock the entire cost from the next tax bill. It doesn’t make sense giving all that money to the government when the company could use it to expand and improve its prospects. So, start putting some plans in place as soon as possible.

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