2021: The year of the cold storage conundrum

For decades, North American logistics has depended on cold storage warehousing to protect and preserve food, cosmetics, and even technology. But refrigerated warehouses across Canada, the United States, and Central America will face a new challenge in an industry that has relied on them the most: expanding cold storage for the healthcare sector.
Laboratory tubes in a red rack.

COVID and cold storage

Over the next few months, countries in North America will begin rolling out COVID-19 vaccines, which has created high demand for cold storage warehousing, as vaccines require climate-controlled environments.

 

But vacancy rates for cold storage warehouses in North America were already too low before the pandemic hit—in the US industrial sector, as low as 10 percent. Moreover, in the coming months, healthcare logistics providers won’t be the only ones vying for this real estate. Likely, so will food and beverage producers, who saw massive increases in sales in 2020 thanks in part to online sales.

 

This demand could start a bidding war on an already expensive refrigerated-storage market. A square foot of cold storage can run a buyer two to three times the cost of a square foot in your average warehouse.

Mobile storage solutions for cold storage concerns

Refrigerated-warehouse owners should look to mobile storage as a cost-effective response to expanding their capacity without having to expand their footprint.

 

Unlike traditional static storage and racking, mechanical-assist and powered mobile storage systems require only one aisle at a time, immediately doubling a warehouse’s storage capacity. And adding more vertical racking and wider shelves to your mobile storage carriages will grow that capacity even further. With refrigeration costs as high as they are, cold storage warehouse owners with mobile storage solutions can expect to keep their energy costs low instead of having to tack another facility onto their energy bills.

 

And most importantly, they are built to withstand the cold storage environment. Montel mobile storage and racking systems are already in warehouses and walk-in freezers across the world. As the cold storage warehousing real estate market becomes more competitive, we’ll be there to help you save space, save money, and save the world with medicine, food, and more.

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