the Tenant’s Edge
Periodically the Interstate Tenant Team will be publishing short-form blog posts to keep you more update on the on-goings within industrial real estate, supply chain, labor analytics, business operations and professional development. We hope that these blogs and articles will help keep you more informed and hopefully spark ideas about how you can make yourself and your business more efficient. Feel free to check back on this site often as we’ll be posting all new content below, or enter your email below to subscribe and get the Tenant’s Edge delivered right to your inbox. Enjoy!
March 6, 2019
industrial labor shortages?
Aside from rising rents, the number one issue facing the tenants that we speak with is labor and having trouble keeping their operations fully staffed. It’s caused headaches for executives across industries as it continues to be increasingly difficult to find reliable labor, especially in distribution centers. Now more than ever, labor is top of mind for operations and procurement executives. To better advise our clients on labor Colliers is continuing to build out our labor analytics practice with robust tools to assist in finding hidden pockets of labor, analyze labor costs, and uncover available incentives.
In the linked article Colliers’ director of industrial research, James Breeze, answers some of the most pressing questions regarding labor shortages for the industrial market. Some highlights:
Industrial labor shortages are being driven by record low unemployment levels paired with growing demands for labor stemming from the continued growth in e-commerce
Picking is now the primary function in distribution centers, opening up the work in warehouses to a wider pool of labor – no longer is it required to be licensed to operate a fork lift or physically lift heavy boxes to work in a warehouse
The highest population growth is in the Southeast and Western US and the Southeast projected to have the highest population growth over the next five years
Are labor shortages effecting your operations? Is your business investing in automation to offset the rising costs of labor? We’d love to hear your thoughts!
February 26, 2019
improving cost productivity
How can we reduce costs and run leaner businesses? It’s a question that is on the mind’s of all executives and for good reason - all businesses want to find ways to increase productivity, lessen costs and increase EBITDA. However, reducing costs and increasing cost productivity is easier said than done. With that being said though, as the white paper below summarizes, there are several strategies businesses can adopt to work their way to becoming best in class when it comes to increasing cost productivity.
Increasing cost productivity leads to shareholders returning: Bain analyzed the cost productivity of over 1,500 public companies and found that companies with consistent cost productivity gains realized higher growth in shareholder return. Makes sense, right? The more efficient your business in ran the more enticing it is to attract investors and return investors
Knowing when to go best in cost rather than best in class: Companies that operate most cost-efficiently make a decision on where they want to be best in class and where they can afford to be “good enough” and low cost. The article makes an example of Ross stores doing just that. Other retail chains such as Dollar Tree, TJ Maxx, and Marshalls come to mind for us. What other businesses operate this way?
Leveraging the front line: Leverage the knowledge of your employees that are on the front line! Because they are the ones day to day running the business, those employees on the front line often times can raise ideas of ways to cut costs and operate more efficiently.
What do you think about the strategies highlighted in the research? Is increasing cost productivity at the top of your business’ to-do list?
Link to article:
February 19, 2019
making yourself more successful
The articles we’ve shared the past couple of weeks all revolved around how to make your businesses more successful so we thought for this week share an interesting article that speaks to how to make yourself more successful. Personal development is something that we’re particularly passionate about, and the below article provides a great brief overview of small things you can do to be more successful in your everyday life.
Some of our favorites from the list:
Spend time reading: Reading is one of the best things you can do for yourself. It’s on every “How to Improve Yourself” type list for a reason. There is nothing better than reading to better yourself, both personally and professionally.
Constantly asking questions: It’s no secret that people who are intellectually curious are some of the most successful people in the world and create multi-billion dollar businesses, and the root of being curious is to start asking questions.
Keep track of your ideas: On our team we all use a good quality notebook to keep track of our notes and ideas. It’s great to have one place where you can store all of your thoughts and then at the end of the week look back and re-read what you learned that week, what you accomplished (if you like to write down your tasks and check them off), and then plan the beginning of the next week.
What are some things that you’ve done recently to make yourself more successful? How have you noticed your personal and professional life change because of those things? Let us know!
Link to article: