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Industrial facilities move into next generation

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As labor-intensive industries move to lower-cost countries such as China, India and Taiwan, a global research firm says countries need to proactively develop next-generation industrial facilities to compete.

ResearchWorldwide.com’s latest Top Report from Colliers International in Singapore identifies these next generation industrial facilities as “high specification.”

These buildings offer a hybrid of office-industrial characteristics to attract companies involved in high value-added technologies and innovative research and development. These facilities’ main distinguishing features include:

• Wider column span ranging between 12 meters and 16 meters versus the typical 8-meter to 10-meter column span for conventional factories;

• Higher grade electrical power;

• Central air-conditioning and building automation systems versus split air-conditioning units and manual systems in conventional factories;

• Broadband Internet access as opposed to dial-up access in conventional factories;

• 24-hour security via closed-circuit television and door contact systems in addition to the normal security guards found in conventional factories;

• Larger floor plates ranging between 50,000 square feet and 100,000 square feet compared to the conventional ones of 20,000 square feet to 30,000 square feet; and

• Ample roof space for generators, condensing units and satellite dishes, as well as amenities such as air-conditioned food courts, cafes and meeting/conference rooms.

When these next generation industrial facilities are in science and business parks they have a park-like environment with lush greenery, landscaping, ample parking and amenities such as cafeterias, restaurants, banking facilities, lounges and child-care facilities.

Job losses in manufacturing are sizable in most major economic countries. In the United States, more than 3 million manufacturing jobs have been lost since 1998. Japan has been losing manufacturing jobs since the early 1990s. In 2004, Japan lost a further 350,000 manufacturing jobs.

In Europe, Germany lost 125,000 manufacturing jobs in 2004, and the United Kingdom, France, Italy, Spain, the Netherlands and Sweden also saw manufacturing job losses last year.

Canada and Australia bucked the trend in 2004, managing to minimally increase their manufacturing employment numbers, according to ResearchWorldwide.com.

Losses like these are the impetus for nations to reinvigorate their industrial sectors by competing for high-value-added technology and innovative research and development firms.

ResearchWorldwide.com, billed as The Worldwide Commercial Real Estate Information Portal, is part of Research Worldwide (Pty) Limited, an independent dedicated research company registered in the Republic of South Africa.

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