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Apr 23, 2019 0

Reasons to invest in the logistics industry

Almost everyone is aware of globalization, e-commerce, and the advancements that technology has brought to the industrial sector. But many may have not given a thought to the opportunities that these phenomena bring with them, and the various kinds of services and products that could be established in order to oil this very machine. One such industry that has firmly established itself in the past few years is the logistics industry, mainly dealing with manufacturing and logistics parks in India.

One of the branches of this business is warehouses. The term ‘warehouse’ conjures the idea of a dilapidated storage space where many boxes are haphazardly stacked. Logistic parks take the warehouse spaces in Delhi and transform them into modern, efficient storage spaces that provide additional benefits. These include services such as domestic and foreign trading activities, specific requirements such as cold-storages, better transport facilities, inland container depots, container freight stations and anything that eases the process of transport and storage.

This sort of business remains stable and often has a competitive but consistent market. Other industries may fall out of use due to technology, irrelevance, or obsoletion. But storage is something that other industries will always require, and so despite fluctuations, it will never go out of use. Technological advancements would only add to the utility of the industry, rather than take away from it. Newer technologies such as employee screening have only companies given all the more reason to invest in such a facility.

Thus, the industry is also relatively recession resistant, as storage and shipping can never completely diminish. As soon as other industries begin to recover, the logistics industry can revive immediately. It is a win-win situation either way since storage spaces cannot be discarded.

Another reason to invest in the sector of manufacturing and logistics parks in India is the low barrier for entry. With demands on an ever-increasing rise, and consumers demanding faster and faster deliveries to every remote location, the industry does not pose high barriers even if the market is competitive. This is because the sector demands low investments and little effort. Even costs like a hike in fuel charges or shipping are passed on to those who avail the service. This makes the industry ideal for new players without abundant capital.

If you are interested in investing in warehouse spaces in Delhi, or any similar business, keep these points in mind and make a decision accordingly. You can also take expert advice from those already in the field to know the risks and challenges you may face. With consumerism on the rise, storage spaces- and paying for storage spaces, might just become a big deal.

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