Prior to the advent of the COVID-19 pandemic, the Philippine logistics and storage market was booming.The logistics sector is expected to grow at a rate of 8.2% to 8.8% by the 2018-2024 era and is expected to succeed in a market.The Philippine government’s efforts to simplify transactions through the installation of trade law and its efforts for infrastructure quality through the Build-Build-Build program have enabled the Philippines to make significant progress in the overall rating.Logistics Performance Index (LPI).
Although the COVID-19 pandemic has unfortunately hampered the immediate expansion of the country’s storage and logistics market, the industry has remained unwavering.In fact, the role of the Philippines storage and logistics market as a service provider has an important and indispensable service.COVID-19 pandemic has required the implementation of new economic and social protocols.
According to Lobien Realty Group (LRG), one of the fastest-developing genuine real estate consulting firms in the Philippines, the serious effects of the COVID-19 pandemic on some industries have therefore affected the logistics and transport sector.’storage. The government’s strict implementation of quarantine measures has had a serious effect on the production industry.Merchandise exports fell by 35.6%, but with notable innovations in agricultural, forestry and manufactured products.Imports fell by 40.6%, but showed a decrease in contractions in primary product groups, namely capital goods, raw materials, chemicals and added manufactures, and customer goods.Consumption. The pandemic has led to limited movement of goods across the country.Although some brands continue to produce and distribute non-essential parts such as clothing, bags, accessories, shoes, etc., it is clear that the production sector is more oriented to the production and distribution of food and essential products.. Manufacturing corporations have had to cut production prices in reaction to declining purchases of their customers.
E-commerce brings logistics and storage to life
The e-commerce industry, on the other hand, has continued to grow in recent years and the pandemic has only strengthened the market. Retailers and commercial homeowners do not yet have an option to make a strategic transition from their online marketplace to their operations, as retailers have been forced to close or restrict their transactions through delivery and takeaway facilities in accordance with quarantine regulations.As other people practice social distance and continue painting from home, they prefer to shop on online sales sites to avoid being exposed to many other people.This has led to the rise of e-commerce corporations and a decrease in sales at physical outlets, which has intensified the logistics industry. Innovations and projects in the logistics of e-commerce to address the massive logistics call and assistance to displaced people other people make a living and adapt more to participants in the logistics market.
Public and personal sector movements to mitigate disruptions to the pandemic’s chain of origin, combined with the main demand for e-commerce logistics, have in turn led to a greater need for storage. LRG recommends that with the main storage demand, the storage industry will put into effect technological inventions that will generate more value-added and cost-effective facilities for its customers.LRG expects automation and robotics to be common in the storage industry in the near future.
Warehouse rental rates in and around the Metro Manila area
The limited source of land in the metropolitan domain of Manila has influenced the continued accumulation of land value.For this reason, in addition to the structure costs, the profitability objectives of classic warehouse business models in the metropolitan domain of Manila have been greatly affected.rates in the metropolitan domain of Manila are lately high, with Makati and Taguig rates ranging from PHP 400 to PHP 1,000 consistent with square meters; Pasig and Mandaluyong rates from two hundred Php to 1,000 Php consistent with square meters; Quezon City, 150 Php to 500 Php consistent with m2; Alabang, from 250 Php to 400 Php consistent with m2; Bay City: two hundred Php to 450 Php according to square meters; and, Paranaque – Php two hundred to Php 500 consistent with square meters.
However, the structure of a garage facility used only for garages in the metropolitan domain of Manila would result in a longer recovery according to the period.For this reason, consistent developments can look for storage locations in provincial spaces that have more flexible terrain and moderate terrain values.Rental rates in Bulacan, Cavite and Batangas lately range from PHP 150 to three hundred Php depending on square meters; Laguna, from 150 Php to 250 Php consistent with m2; Bataan, from 150 Php to two hundred Php consistent with square meters; and Pampanga from 90 Php to two hundred Php consistent with square meters.
The role of government and industry in expanding logistics and storage
LRG expects the logistics and storage industry in the Philippines to continue to grow despite the COVID-19 pandemic.According to this projection, LRG states that major genuine real estate corporations have invested and are lately involved in logistical and commercial expansions.Holdings Corp.et Ayala Corp.Infrastructure Holdings, Inc. operates several commercial and logistics real estate parks in key regions of the country, acquired Laguna Technopark in 2018 and has invested in Zalora Philippines and Entrego to capture opportunities for expansion in e-commerce.Investments Corporation has acquired a minority stake in the country’s largest embedded chain of origin operator, 2GO Group Inc., whose operations include shipping, shipping, storage and explicit delivery.Filinvest Land, Inc. has incorporated commercial and generation parks into several projects across the country, such as the Filinvest Technology Park in Calamba City and has begun to expand into New Clark City, a future-proof, environmentally friendly municipality that will have a hundred hectares allocated for its commercial area.
In order for the logistics and storage industry to continue to move forward in a way that fits its vital role, LRG notes that the government deserves logistics organizations in implementing the allocation by coordinating logistics reaction, logistics operations, and proposing solutions.proposes that logistics partners focus on two intervention spaces; the amount and type of logistics that can be provided to government, and technical and operational assistance to make plans for the personal sector reaction that includes business continuity, while the expansion of the e-commerce industry is expected to continue to grow over the next two years, LRG concludes that the logistics and storage sector will achieve the initial medium-term expansion rate expected by industry experts.
ADVT
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