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Economic Impact of Industrial and Logistics Parks

Infrastructural development propels development. The same is true for industrial warehouses too. Their influence extends much beyond their immediate surroundings, with the capacity to boost regional economies, generate employment opportunities, and even promote community growth. We examine in more detail how these centres of warehousing are subtly influencing our economic environment.

Creating Job Opportunities

The most obvious and significant contribution that industrial parks make is creating innumerable jobs. They generate direct employment opportunities by offering a wide range of positions in manufacturing, logistics, management, and support services. When workers find well-paying, steady jobs, local consumer spending and overall economic activity are boosted.

But the benefits don’t stop there. An industrial and logistics park's existence also creates a number of indirect jobs in other services and sectors that are codependent on warehousing and logistics. Warehouse developers routinely need the support of service sectors such as transportation providers, maintenance workers, and local suppliers. There is also a need for skilled labourers and manual workers on a regular basis. And these service providers require their own set of handymen to keep their services running as well. 

Supporting Local Businesses

Industrial and warehousing parks are powerful engines for local businesses to thrive. Industrial and logistics activities bring about an influx of related businesses and the necessary workers which boosts the surrounding areas and bring about a surge in all kinds of economic activities. Local businesses such as retail shops, restaurants, and hospitality services start seeing a rise in patronage as the park's population grows. An increased economic activity frequently encourages the formation of new business partnerships and innovative entrepreneurial pursuits.

Attracting Investments

Industrial and logistics parks are magnets for both national and international investments. Their well-planned infrastructure, strategic locations, and comprehensive facilities align with businesses looking for new operational bases. Increasing investment leads to the expansion of businesses, growth of industrial hubs and nurtures a vibrant business environment.

A thriving industrial warehouse park often prompts infrastructure improvements, such as the development of roads, utilities, and other major transportation networks. The CSR activities of warehouse developers and their customers can also lead to an upliftment of the environment in the form for lake and pond development, landscape rejuvenation and retrofitting of public areas with modern amenities. These enhancements not only benefit the businesses within the park—by achieving their ESG goals and garnering consumer goodwill—but also improve the overall business climate, making the region more attractive for further investments and developments. This cycle of investment and development fuels the economic growth of the region, positioning the area as a prime destination for other business ventures to set up their footprint there.

Community Development

Industrial parks contribute significantly to society development as well. Improved infrastructure and creation of job opportunities fostering community growth and nurtures agency among its individuals. Road, utilities, and essential infrastructure development benefits the wider community in the local regions, helping enhance their living standards and improving their connectivity.

Beyond physical infrastructure, industrial and warehousing parks often engage in community development programs and initiatives. These efforts can include educational and skill development opportunities for local residents, preparing them for the demands of the modern economy. For instance, an industrial park might partner with local educational institutions to offer vocational training programs, teaching individuals the skills needed for employment within the park. This not only helps create a skilled workforce but also provides these residents with pathways to better jobs and improved livelihoods.

Similarly, warehouse developers can support community development by investing in social infrastructure. This could involve building community centres, healthcare facilities, or recreational spaces, which enhance the quality of life for residents.

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Spotting Greenwashing in Warehousing

As the pressure to embrace sustainability grows, many businesses in logistics and warehousing are quick to highlight their green credentials. As a responsible business in this sector, we understand that it is crucial to be diligent and ensure that these claims are genuine and that we don’t fall into the trap of Greenwashing.

Greenwashing can mislead both consumers and partners, drawing attention to minor improvements while overlooking the deeper issues that require real change. So how do we spot and steer clear of greenwashing in warehousing?

Watch Out for Carbon Offsetting

One approach to sustainability that can sometimes create a misleading impression is carbon offsetting. This method involves investing in environmental projects, such as tree planting or reforestation, to "offset" emissions generated by a company’s operations. While these initiatives do have environmental benefits, they don’t directly address the emissions produced within the company itself. Essentially, offsetting compensates for pollution elsewhere, rather than reducing it at the source.

A more holistic sustainable approach is carbon insetting, where companies actively work to lower their emissions within their own operations and supply chains. This might involve switching to electric vehicles, integrating smart technologies for operations and construction management, installing solar panels on warehouse roofs, or adopting more efficient energy practices within the facility itself. Unlike offsetting, insetting focuses on tackling emissions at the source, leading to more meaningful and lasting environmental improvements.

Labels Without Evidence

A common sign of potential greenwashing is the excessive use of terms like "eco-friendly" or "green" to create the impression of environmental responsibility but without clear explanations or evidence to back them up. For example, a warehouse might highlight its use of sustainable packaging or energy-efficient lighting, but these efforts may not be enough if other areas, like transportation emissions or inefficient cooling systems, are neglected.

The key to identifying genuine sustainability is to dig deeper. A truly sustainable operation offers transparency and detailed insights into all aspects of its practices—from the materials used in constructing the facility to its energy usage and waste management. Sustainability should encompass the entire lifecycle of the business, ensuring that every stage is designed to minimize environmental impact. When assessing whether a company is truly eco-friendly, it’s important to seek specifics and verify the depth of their efforts.

Certifications and Data Transparency

One of the clearest ways to spot greenwashing is by applying the transparency test. A company that is genuinely committed to sustainability will be open and detailed about their environmental impact, making it easy to see exactly how they’re working to reduce their carbon footprint.

They will publish detailed sustainability reports and provide hard facts about their emissions, energy use, and waste management. Certifications from respected bodies like USGBC-LEED, IGBC or EGDE are also important markers of genuine efforts, as these credentials require rigorous audits and ongoing improvements.

A company that is truly committed to sustainability will embrace third-party verification and openly discuss how eco-friendly practices are woven into every aspect of their operations. From sourcing materials to managing supply chains, transparency is essential to backing up their environmental claims.

Evaluate the Complete Picture

When it comes to true sustainability in logistics and warehousing, it’s important to look at the entire supply chain—not just a single part of the process. While a company may highlight its use of recyclable materials, it’s crucial to look at the broader context. How are materials sourced? How are they transported, stored, and eventually disposed of? Each stage of this process carries potential environmental consequences. Here are some hard questions to ask.

Environmental Impact: Companies should track and minimise their carbon emissions at every stage—from sourcing raw materials, transportation methods, energy consumption in warehouses, and waste management practices. Ask whether renewable energy sources like solar panels are being used. Are energy-efficient systems, such as smart lighting or HVAC controls, installed? Is water conservation a priority?

Social Responsibility: A truly sustainable warehousing company not only cares for the environment but also considers its impact on workers and local communities. Are employees provided with safe working conditions? Does the company support fair labour practices and create opportunities for local hiring? Warehousing developers should avoid practices that exploit labour or negatively affect the well-being of communities around them.

Governance: Strong governance ensures that warehousing developers and operators aren't just paying lip service to sustainability but are integrating it into their corporate structure. Are there transparent reporting practices in place? Do these companies have third-party certifications like LEED, EDGE or IGBC? Genuine businesses will have clearly defined policies that reflect their commitment to ESG standards, with board-level oversight ensuring that sustainability goals are pursued rigorously.

By digging deeper and staying vigilant, you can see beyond the greenwashing claims and support businesses that genuinely embrace sustainable warehousing practices. These are the companies that make thoughtful choices throughout their entire supply chain—choices that have a lasting, positive impact on the environment.

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Which Warehouse Does Your Business Need?

You need a warehouse.

You have pinpointed the most optimal location and finalised on all the high-tech equipment and machinery to function with ease, but how do you decide which warehouse building is best suited for your operations and functions? Let’s find out.

The Standard Warehouse

For operations that only need basic walls, a roof and some clear space, the standard warehouse is the way. These warehouses can be made in any size required and are extremely versatile.

It is possible to fit them with skylights and windows as well as with multiple gates, ramps and docks. They are a popular solution for almost every industry, providing storage for machines, raw materials and equipment, and products in production; serving as transshipment points in logistics; storing goods for retailers and wholesalers; acting as distribution centres for e-commerce; and even housing donations and relief supplies for non-profit organisations.

A standard warehouse can be easily adapted to specific equipment and spatial requirements by the warehouse developer and are extremely cost effective for businesses that require minimal retrofits to get going.

The Container Warehouse

This is a specific kind of storage warehouse is a stopover for goods coming or going from freight transport. These warehouses are used to consolidate or deconsolidate freight goods to prepare them for the next legs of their journey. Or in other words, it is a temporary storage for the goods to wait a little for other goods to come and fill a container up, before they can be shipped off. The challenge here is to have a system that allows storing, tracking and retrieving the goods easily and efficiently.

Container warehouses need to be located close to ports, airports, or major railway hubs. These warehouses can be designed for efficient cross-docking and provision can be made for ample parking space for holding trucks even in case of demand surges. These warehouses are also equipped with stacking racks, crane systems, container frames, floor anchors, proper lighting, and robust security systems.

The Open-Air Warehouse

For large and heavy items that are difficult to move in and out of warehouse dock doors, open-air warehouses provide an efficient storage solution. Custom-designed racks for open yard storage can offer protection from atmospheric elements and play a key role in keeping the goods safe. Typically, the warehouse is an open area with space demarked and fenced in with walls with a high level of security to safeguard the assets.

Depending on the sensitivity of the goods and the extremities of the climate, storage can be covered or partially roofed. Goods are also protected by covering them in plastic wraps or tarps. These warehouses are commonly used to store vehicles, spare parts, machines, and raw materials for construction, metalworks, or timber sectors. The design of open-air warehouses focuses on shielding goods from harsher natural elements like direct sun or snow but may not address milder elements like humidity, wind, dust, and temperature fluctuations.

The Industrial Warehouse

This is the modern-day factory which may span across multiple halls and floors and can be tailored to integrate advanced technology and equipment. The industrial warehouse can be designed to have spacious loading and unloading areas; ample space for machinery, equipment, goods, and workplaces; high ceilings and large doors for the transporting of goods and large machines, even indoors; bright administrative and office areas; parking spaces for delivery and staff vehicles; pleasant social and relaxation areas for the workers; strong load-bearing floors; a reliable energy supply and ventilation; independent lighting systems for each work area and fire protection measures like fire alarms, smoke detectors, and fire extinguishers.

These warehouses are especially popular for manufacturing companies, energy and utility companies and businesses in the food and beverage industry.

The Custom-Made Warehouse

When your business needs are too complex to be housed in a pre-made standard warehouse, you need a warehouse designed around your requirements. These are called built-to-suit warehouses. They provide a high degree of customisation and can be made to create the ideal environment needed for your operations and goods.

Need a cold storage with consistent temperature and humidity, immaculate hygiene and protected electrical circuits? It is possible. Need a chemical warehouse with good ventilation systems, fire containment measures and specialised storage? Also, possible. Retail warehouses with space for smart racking and processing machines, auto warehouses with complex assembly lines or heavy industry that need tall lifting equipment and sturdy densified floors, a custom-made warehouse lacks for nothing.

The Automated Warehouse

If you are a business that uses machines to do it all, then an automated warehouse is what you are looking at. These are computer-controlled environments with automated racking and shelving, conveyor and retrieval systems. While the investment cost is definitely high, the efficiency is unmatched. These warehouses are sought by large trading companies, global e-commerce giants, logistics parks in India and manufacturing behemoths.

At the end of the day, you know your business needs better than anybody. It is crucial thus, to find a warehouse developer who is proactive in understanding your functional requirements and who works with you to overcome any infrastructural challenges in a collaborative way. At Horizon Industrial Parks, our teams specialise in delivering custom-made warehouses as well as providing swift plug-and-play solutions that can get your operations running in no time. To learn about what our customers like about us, click here, and visit our website to connect with us for exploring collaboration opportunities.