Cost of Warehouse Construction

Panel Pour at Kingdomcity Mandurah - Church Construction by Perth Builder Alita Constructions

Your warehouse is designed to help your business store inventory, build its brand, reach a new market, as well as grow and meet the needs of your customers in the most efficient manner possible. However, while it is designed to help you generate more revenue revenues and improve as a whole; the cost of warehouse construction is something you will want to take into account before committing to new warehouse construction.

There are various factors and warehouse construction details to take into consideration to ensure the final product is worthy of the capital investment you will make. Read on to find out more so that you make the right decision for your organisation’s expansion and your bottom line.

To extend or build new

There are often two sides to every decision, namely whether to proceed or not but in the case of increasing warehouse capacity, there are three options: to build a new warehouse, not to build a new warehouse or to extend an existing warehouse. It is not a decision that can just be taken at face value and requires more thought than what is costlier between new warehouse construction and the cost of warehouse extension construction. In this next section, we’ll tackle some of the most critical issues to keep top of mind during the decision-making process.

Making the right decision for increasing your warehouse capacity

The following should be at the forefront of your thoughts when contemplating new warehouse construction:

Your business needs

There should be hard evidence to justify the capital investment of expansion. This means it should be clear that the needs of the organisation and its ability to complete its objectives are reliant upon the new build or extension. If there is no excessive current or projected demand to warrant the additional space for a new warehouse, then an extension might help satisfy the needs of the market without wasting space and incurring unnecessary costs. Alternatively, if an extension is still short of the capacity required to fulfil the growing requirements of the market, you could be losing out on valuable business and losing out on available market share.

Location

When considering the construction of a new warehouse location is a critical factor to take into account. The proximity of your warehouse to distribution channels and your customers is equally as important as ensuring the best candidates to man the warehouse can commute with relative ease to ensure warehouse efficiency and staff retention. Furthermore, securing the necessary permit for construction will also require essential insights about your chosen location as some areas will be easier than others.

Equipment

Equipment and warehouses go hand in hand. It will be essential to take into consideration what kind of equipment will be needed for your new warehouse as this will influence design. In addition, as is always the case equipment will eventually require maintenance and proximity to qualified technicians will help minimise any downtime.

Client preferences

The decision to take on industrial warehouse construction shouldn’t compromise the service and relationship that already exists with your current customers. Reassuring your clients that they can expect the same high level of service will reduce the likelihood of them switching to or making use of other suppliers.

Costs

The complexity of the design largely influences the cost of warehouse construction. The material selections and the selection of final fixtures and fittings also impact on the cost of the warehouse construction to a large degree. The design needs to be controlled if the cost of the warehouse construction is to be kept to a minimum. This will require cost controls applied by a quantity surveyor or engage a commercial builder in working in with the design team to analyse the cost of the concept design and the preliminary design.

It is also essential to review costs differences of methods of construction and their durability over time versus the cost to determine the value for money. For example, a tilt-up panel concrete warehouse construction will be a durable, long lasting solution that will provide value for money.

Get the clarity you need from the experts you can trust

Alita Construction has been a mainstay in the construction industry for years because of the high standards we offer and our ability to deliver to specification. If you’re looking for commercial building expertise or advice, get in touch with our team today.