If there is one certainty, people will always need food. However, one challenge remains, which is distribution. According to the World Food Logistics Organisation’s website, there is more than enough food produced to feed everyone, but the inherent problem is ensuring that the food is harvested, stored and distributed to retailers and consumers in a way that minimizes spoilage – from farm gate to food plate. Thus, we have what is known in the industry as the “cold chain”.
The refrigerated warehouse industry has enjoyed strong growth in the last decade and the scope of services provided by companies goes far beyond the warehousing of perishable goods. They are now considered key links in the global food chain.
However, the recession has meant that it has been a challenging year for the industry. While food sales generally held up during the recession, rising inflation and labour costs meant that it was very difficult for operators in Western Europe. Meanwhile in the United States, the refrigerated transport market in particular was affected in terms of growth, revenue and employment. However, the industry is slowly recovering and is expected to experience large-scale growth around the world. This is attributed to a number of factors, including decreasing fuel costs, growth in the refrigeration equipment industry, and in the United States more specifically, the government’s funding for industry growth.
MARKET GROWTH
There will also be further expansion into the Asian markets. According to a new market research report on companiesandmarkets.com, the total market for cold chains in India is estimated to reach INR 400 billion in 2015.
Chinawill also be a major growth area; the country currently has the world’s fastest-growing consumer market for perishable food and pharmaceutical products, but its per capita refrigerated warehouse space is less than one-tenth of the most developed countries.
New-Jersey based Preferred Freezer Services (PFS) has already capitalized on this growth market; in July 2009 the company started construction of a 280,000-square foot refrigerated warehouse at Lingang Logistics Park in Shanghai, China. Once built, the warehouse will be the largest and most advanced single-storey storage facility in China, according to the Shanghai Institute of Mechanical & Electrical Engineering Co Ltd.
Innovation in product development will also reinforce growth in the industry. According to the US Refrigerated Road Transport Market 2008-2012 forecast report, “various trends are being observed in the US refrigerated road transport market”. For example, all fleets in the US are now incorporating monitoring devices on their refrigerated vehicles to check quality of food items at various time spans. This helps manufacturers track the quality of the products at every instance during transportation.
EMBRACING TECHNOLOGY
Larger players in refrigerated warehousing have also embraced new technologies in recent years, such as automation systems, which can achieve a smaller building footprint and reduce operational costs. Accellos Inc, based in Colorado Springs, is a leading provider of refrigerated warehouse management software and recently released the latest version of its highly successful warehouse management system, which is aimed at increasing the productivity, efficiency, and visibility of activities in warehouse and distribution operations.
According to Ross Elliott, Chief Technology Officer, the new software, Accellos One Warehouse Version 6.1, “enhances existing capabilities within the system” and offers “new capabilities that take advantage of the latest advancements in Microsoft technology, like .NET 3.5 and Silverlight”. The software also includes voice-directed picking, improved advanced ship notice process and advanced dock door scheduling.
The refrigerated warehouse industry will make smooth gains after a challenging year.
Not only can we expect stronger international penetration but there will also be a stronger trend to introduce more logistics and supply chain management services, as well as more automation to improve operations.
One thing that we can be certain of is that there will always be a demand for refrigerated warehouse and distribution facilities. More are realizing that outsourcing offers a myriad of benefits for their low temperature products, so the industry will only gain momentum.
The refrigerated warehouse industry has enjoyed strong growth in the last decade and the scope of services provided by companies goes far beyond the warehousing of perishable goods. They are now considered key links in the global food chain.
However, the recession has meant that it has been a challenging year for the industry. While food sales generally held up during the recession, rising inflation and labour costs meant that it was very difficult for operators in Western Europe. Meanwhile in the United States, the refrigerated transport market in particular was affected in terms of growth, revenue and employment. However, the industry is slowly recovering and is expected to experience large-scale growth around the world. This is attributed to a number of factors, including decreasing fuel costs, growth in the refrigeration equipment industry, and in the United States more specifically, the government’s funding for industry growth.
MARKET GROWTH
There will also be further expansion into the Asian markets. According to a new market research report on companiesandmarkets.com, the total market for cold chains in India is estimated to reach INR 400 billion in 2015.
Chinawill also be a major growth area; the country currently has the world’s fastest-growing consumer market for perishable food and pharmaceutical products, but its per capita refrigerated warehouse space is less than one-tenth of the most developed countries.
New-Jersey based Preferred Freezer Services (PFS) has already capitalized on this growth market; in July 2009 the company started construction of a 280,000-square foot refrigerated warehouse at Lingang Logistics Park in Shanghai, China. Once built, the warehouse will be the largest and most advanced single-storey storage facility in China, according to the Shanghai Institute of Mechanical & Electrical Engineering Co Ltd.
Innovation in product development will also reinforce growth in the industry. According to the US Refrigerated Road Transport Market 2008-2012 forecast report, “various trends are being observed in the US refrigerated road transport market”. For example, all fleets in the US are now incorporating monitoring devices on their refrigerated vehicles to check quality of food items at various time spans. This helps manufacturers track the quality of the products at every instance during transportation.
EMBRACING TECHNOLOGY
Larger players in refrigerated warehousing have also embraced new technologies in recent years, such as automation systems, which can achieve a smaller building footprint and reduce operational costs. Accellos Inc, based in Colorado Springs, is a leading provider of refrigerated warehouse management software and recently released the latest version of its highly successful warehouse management system, which is aimed at increasing the productivity, efficiency, and visibility of activities in warehouse and distribution operations.
According to Ross Elliott, Chief Technology Officer, the new software, Accellos One Warehouse Version 6.1, “enhances existing capabilities within the system” and offers “new capabilities that take advantage of the latest advancements in Microsoft technology, like .NET 3.5 and Silverlight”. The software also includes voice-directed picking, improved advanced ship notice process and advanced dock door scheduling.
The refrigerated warehouse industry will make smooth gains after a challenging year.
Not only can we expect stronger international penetration but there will also be a stronger trend to introduce more logistics and supply chain management services, as well as more automation to improve operations.
One thing that we can be certain of is that there will always be a demand for refrigerated warehouse and distribution facilities. More are realizing that outsourcing offers a myriad of benefits for their low temperature products, so the industry will only gain momentum.