Majority of logistics service providers look forward to new locations

Author without image icon
Editorial
03 June 2019
2 min

Almost half of large logistics companies in the Netherlands want to expand and are thus potentially looking for a new location. Among logistics service providers, this percentage is as high as 70 per cent. The reasons: customer portfolio growth and property modernisation.

This emerges from Stec Groep's large-scale survey of 450 shippers, retailers and logistics service providers. Although logistics companies seem satisfied with their current location - their current location scores an average of 7.6 - they still look forward to new locations. Growth is the main driver behind this dynamic, and in the short term companies are mainly looking for XXL plots. For the longer term, a smaller plot in urban surroundings also seems attractive.

Preference for own region

When choosing a new location, companies are mainly driven by costs, staff availability and road accessibility. Over 70 per cent of logistics companies indicate a strong preference for their own region when making an investment decision. Reasons for this are the presence of existing personnel, the location in relation to sales market and suppliers. Many of the companies prefer the central axis in the Netherlands (North Brabant and Utrecht are favourites).

Companies with strong staff demand, for example logistics service providers or companies in e-commerce, often consider investing in other locations than initially envisaged.

'Municipalities need to understand local labour market'

In its report Logistiek in Beeld, Stec Groep advises what municipalities can do to increase their chances of success. The consultancy argues that it is crucial to understand the local labour market and make policies accordingly. Think training, harnessing the flexible shell, housing migrant workers, connecting public transport. "This can only succeed with convincing figures tailored to the immediate surroundings of the potential place of establishment. In addition, clear and quick procedures are important; companies want to know where they stand." Furthermore, Stec Group sees being able to offer XXL plots as a plus because these are scarce. "From the debate on the 'withering' of the landscape, more direction on strengthening XXL logistics new-build development is desirable to prevent sprawl."