E-Commerce and Land Use

20140810-132854-48534722.jpg

Most people don’t equate e-commerce with land use planning, but as more people shop online it is going to have a huge impact on our cities. For example, North America is undergoing a massive boom in warehouses and “fulfilment centres.” As the Economist writes:

Such modern structures usually lie within 100km (60 miles) of a big city and are near sea- and airports, highways and sorting hubs for couriers like FedEx and UPS. They are much bigger than older types of warehouse: often more than 100,000 square metres (1.1m square feet, or 14 football pitches); and they have high ceilings to further increase their volume. At Dotcom Distribution’s cavernous New Jersey warehouse, pickers ride “reach trucks” up to three storeys above ground to fetch 50,000 different products for 15 e-commerce clients. Such fulfilment centres also employ far more people than older warehouses: around Christmas each may have up to 3,000 staff working on shifts.

We can already see how the rising demand for fulfillment centres is playing out at the local level in British Columbia where there is a brewing battle between conservationist and developers for land.

The Globe and Mail reports that the demand for new industrial land required in British Columbia’s Lower Mainland is already far more than what is available. Paul Tilbury, the Chief Operating Officer of an industrial developer in the Lower Mainland argues that demand for industrial land can’t be served “by intensification or telling distributors to go to Kamloops or Calgary, as local politicians have suggested. A lot of the new demand comes from the e-commerce section. “They measure their success in delivery time,” Mr. Tilbury says. That means they want to be as close as possible to the big population centres.

E-commerce is going to significantly affect land use policy as we grapple with preserving agricultural land and reducing sprawl. It is also likely to create a mismatch between retail space and industrial space. We’ll need fewer stores and more storage. Will this mean that eventually big box centres will be converted to warehouses? It’s hard to say, but what is clear is that fulfilment centres are becoming an integral part of the economy and will shape the future geography and economy of cities and regions.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s