Prefabricated temporary buildings are the fastest, most effective, and cost-effective solution to avoid shortages in the complex and changing world today. Both for storing raw materials in companies and large corporations and for storing manufactured goods before they are shipped out of the factory. And for large companies engaged in buying and selling or transporting and distributing goods.
From the outbreak of the pandemic to the crisis in the Red Sea, barely four years have passed. During this time, situations have occurred that make it difficult for companies to forecast and cause their storage needs and the physical presence of goods to fluctuate to a level never known before.
The current landscape is very complex.
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Prebuilt temporary buildings, the quick and cost-effective solution to improve companies’ resilience and avoid shortages.
At VALL, we have been helping our clients for years to overcome these problems and avoid shortages, with the installation of prefabricated storage warehouses. The most efficient way to improve their flexibility and resilience in the complicated and changing current context.
The need for quick and cost-effective adaptation to market changes is becoming increasingly common for companies in various sectors. Logistics, agri-food industry, or heavy industry, are just a few of them.
Their growing storage space needs or the need to have an industrial storage building in a new location is easy to meet by installing prefabricated storage pavilions.
They can be placed quickly to be operational in a short time in the chosen location and according to the requirements of each client. Without the need for construction work and with a drastic simplification of the permit acquisition.
Prefabricated steel industrial buildings or aluminium ones are cost-effective, safe, and resistant solutions that can be dismantled with the same agility if those needs change in the future.
Key factors of the current global context: the main reasons for the risk of shortages.
Armed conflicts that hinder and slow down maritime freight transport
There is no period in history when peace has been a reality worldwide. There has always been some conflict zone. But in the past, the volume of goods and products moved was not as it is today. Globalization and international market dependence are greater than ever.
Some current conflicts and the threat of escalation jeopardize the supply in much of the world and increase company costs.
The current Red Sea Crisis hits global trade and joins existing ones like the Black Sea and the Baltic Sea. The diversion of temporary buildings adds days and costs to a high percentage of freight transport between Asia and Europe. And it increases the risk of a blockage due to saturation or bottlenecks in some ports.
The installation of prefabricated storage buildings in new locations helps to release these bottlenecks by redirecting the loading and unloading of goods to other ports.
For companies that receive supplies, the placement of prefabricated aluminum industrial warehouses or steel ones means having adequate space to store more raw materials, avoiding shutdowns due to lack of supply.
And they also allow increasing their storage space for manufactured products when market conditions require slowing down their delivery to their destinations.
Drought hindering the passage of goods through the Panama Canal
Drought limits the Panama Canal and increases transportation costs in this part of the world. Raw materials such as oil, coke, iron ore, or grain are among the most transported through this route.
The El Niño weather phenomenon and drought have dealt a blow to global maritime transport. Tons of raw materials have been stuck in a canal through which about 6% of global goods pass.
Alternatives add costs, risks, and difficulties. Cape Horn is the most dangerous maritime passage in the world, in addition to lengthening the journey. And going around Asia is not profitable.
Upcoming arrival of winter in the southern hemisphere: Cape Horn, Cape of Good Hope…
Currently, the southern summer allows relatively smooth navigation. But the arrival of the stormy season in areas such as the Cape of Good Hope or Cape Horn will greatly complicate it.
Strikes and demonstrations cutting traffic on EU roads
The 2024 European elections are held in early June. It is expected that until then, and most likely for months afterward depending on the results in each country and globally, demonstrations will occur.
Farmers and transporters, mainly, threaten with strikes and months of roadblocks in the EU in countries like Spain, France, Poland, Germany, and many others, making it difficult to supply markets in industry, logistics, and food.
Other threats that make it necessary to take measures to improve companies’ storage capacity to avoid shortages.
Among the most relevant ones:
- The increase in maritime crime in certain areas, according to Interpol data.
- Drought and armed conflicts, among the reasons for the changing greater needs for cereal storage and other raw materials in the food industry sector
- Vetoes and international alliances hinder companies’ forecasts and increase the risk of shortages.
- The increase in raw material needs and sale of manufactured products by the arms industry.
The large number and diversity of causes that jeopardize the supply of raw materials and goods make the problem more complex. And the need to find effective solutions to adapt and have industrial storage buildings and modular industrial buildings for logistics is more urgent.
Sources:
https://www.europasur.es/maritimas/crisis-mar-rojo-canal-suez-coste-transporte_0_1869113536.html