Bill Stankiewicz

4 years ago · 2 min. reading time · ~10 ·

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BRRRRR, ITS COLD: Strong demand from online food sales is creating more opportunities for cold storage construction in the US. Shared by SAVANNAH SUPPLY CHAIN GUY, BILL STANKIEWICZ, 1-404-750-3200

BRRRRR, ITS COLD: Strong demand from online food sales is creating more opportunities for cold storage construction in the US. Shared by SAVANNAH SUPPLY CHAIN GUY, BILL STANKIEWICZ, 1-404-750-3200

Hello Bees:

Yes in the rapidly-evolving logistics market of 2019, cold is the new hot. That might sound confusing to those unacquainted with refrigerated logistics, but for anyone who’s been following this growing field, it’s right on target. 

The demand for refrigeration in the supply chain is greater than it’s ever been. Numerous trends are pushing toward an increased capacity for refrigeration in logistics, and the logistics market is scrambling to keep up and to evolve in order to meet the newest developments. The CAGR for refrigerated logistics is forecast to reach 2.5 percent in the period from 2017 to 2022, so the time is now for businesses looking to lock in their refrigeration solutions. 


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KEY PREDICTIONS:

Brick-and-mortar F&B spending will continue to outpace more traditional retail categories over the
next five years.  We will still have more beBee meetings with burgers in Savannah, Georgia. Morning chats will offer free donuts too!  

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Grocers will devote more space to prepared foods to
capture shifting consumer demand.

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Restaurants will increase investment in technology (especially data and automation) to control rising costs and limit consumer price hikes.

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Though baby boomers spend the most today, millennials’ F&B spending will outpace that of all generations within the next 10 years.

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Millennials currently prefer lower-priced choices but will
eventually shift toward higher-end options.

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Changes in U.S. household structures will drive up demand for convenience-focused F&B options.

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I do enjoy working in food logistics and trained the staff for Portfresh Logistics prior to their sale this year on 1-31-2019 sale to Americold Logistics.  Cold storage is growing in the USA due to increased demand particularly for fresh produce needed year round by consumers.

There is a strong demand for cold storage warehouses driven largely by growing food sales and increased preference toward online grocery shopping. However, the cost and complexity of building these refrigerated spaces has made their development lag behind dry warehouse development.

CBRE previously forecasted that the growth of online food sales would generate demand for up to 100 million sq. ft. of cold storage space across the U.S. over the next five years.

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The growing demand for cold storage space, along with growing investor interest and better understanding of how to build these facilities, will spur more speculative development in the near future, CBRE predicts. 

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An upside to the high capital expenditures and operating expenses is that occupiers tend to stay in the same facility for longer periods of time. This means cold storage facilities can command higher rental premiums than dry warehouses and occupiers are more willing to commit to longer lease terms.

In addition, CBRE says people can expect to see these three major shifts in cold storage development:

  • More speculative development
  • More development activity in small markets
  • Greater automation in the design and operations of cold storage
  • Bill Stankiewicz comments that more Venture Capital firms will be expanding investments here with food logistics

Have a great day today, be kind, help someone in need.

Best Regards,


Bill Stankiewicz

President 
Savannah Supply Chain
Office: 1.404.750.3200
www.beBee.com USA Brand Ambassador 

information here taken from  https://www.cbre.us/research-and-reports/US-Food-in-Demand-Series-Consumers-April-2019

Comments

Bill Stankiewicz

4 years ago #10

MANY THANKS AGAIN HERE @Geraldo Fernandes (Geraldo Passofundo) !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Carlos Ribeiro

4 years ago #9

#10
Congratulations Bill for the investment and this system is certainly working very well for you and the contractors. My cousin comes today to stay here for a few days at home and seems to be proposing business with my brother in the storage of northeastern coconuts here in Brazil and their prices are well below the market of major capitals. He comes with the transportation of these coconuts here in Sao Paulo and we get buyers that this next summer season sells a lot. Should your city have many imported Coconuts?

Bill Stankiewicz

4 years ago #8

#9
thx Carlos, I helped set up PortFresh Logistics in Savannah, a $18 million dollar investment that was sold for $35 million dollars to Americold Logistics on 1-31-2019 of this year, I trained the staff in food safety, forklift safety training program was set up by me, helped win many new accounts such as Walmart, we did fumigation too. Our produce was imported from Chile and Peru: see this link for more details: https://www.thepacker.com/article/americold-buys-portfresh-plans-produce-expansion-savannah-port

Carlos Ribeiro

4 years ago #7

#7
Thanks Bill for quoting my name and always accompanying you with his innovative news about refrigerators> I remember I was a fruit buyer here in Ceasa São Paulo for a cousin of mine who had trucks, where you transported fruits to another city and all chilled . And you have no projects to invest here in Brazil? Hugs

Bill Stankiewicz

4 years ago #6

You folks are all outstanding people, everyone here on beBee is so kind, A BIG THANKS AGAIN FROM SAVANNA GEORGIA!! CC: Javier 🐝 beBee, GOOD night Spain and to all other folks wherever you reside!!!

Bill Stankiewicz

4 years ago #5

I want to give a special thanks here to Jan \ud83d\udc1d Barbosa

Bill Stankiewicz

4 years ago #4

#2
Ali, here in Savannah at McDonalds I get free refills of sugar free vanilla iced coffee. Thx for reading my friend!!

Bill Stankiewicz

4 years ago #3

#4
Robert Cormack, may thanks for your feedback and you are right on point. best regards, Bill Stankiewicz https://www.bebee.com/producer/@bill-stankiewicz/brrrrr-its-cold-strong-demand-from-online-food-sales-is-creating-more-opportunities-for-cold-storage-construction-in-the-us-shared-by-savannah-supply-chain-guy-bill-stankiewicz-1-404-750-3200

Robert Cormack

4 years ago #2

While I haven't thought much about refrigeration, Bill, you did capture my attention with this. Wendy and I are taking advantage of all the fresh fruits and vegetables in our area, making meals we intend to freeze (as soon as our stand-up freezer arrives). Freezing food on a large scale makes sense, and I'm sure prepared meals will grow in popularity (I remember TV dinners being considered a treat). This looks like a good investment opportunity, something I'd take advantage of if I wasn't spending all my money on fresh fruit and vegetables.

Ali Anani

4 years ago #1

Bill Stankiewicz, \ud83d\udc1d Brand Ambassador- what a coincidence! I am reading your informative and opportunity-highlighting buzz while having a refrigerated cup of coffee.

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