7
the pandemic: footprints of stores getting smaller and companies converting existing space into these mini distribution centers. I think it’s something that will stick around in the long-term because it enables the company to offer the convenience of picking up or shopping in-store. ”Footprints of stores are getting smaller and companies converting existing space into these mini distribution centers. I think it’s something that will stick around in the long- term.” Dan: I think we saw the industry jump five years in 18 months due to demand from the pandemic and we saw a lot of companies push into the e-commerce space. It affected brick-and-mortar stores to a large extent, but I will say it’s not the end of them completely. There’s still a need and a desire for things like restaurants, for example, and consumers need a place to pick up purchases, and sometimes there’s still no substitute for trying on jeans or a pair of shoes before you buy them. But going forward, the footprints and layouts of those physical locations might look and function differently than before. LDG: What are some of LDG’s areas of focus as it relates to these changes? Dan: It’s mostly what consumers don’t see – all the moving parts of warehousing and distribution that make it possible for a purchase to make it to you in a day or two. Those delivery times keep getting shorter as more and more companies want to be the “fastest” option, and it’s putting a lot of pressure on the companies that provide those warehouse and delivery services. That’s where the AEC industry factors in: We look at the physical infrastructure, the buildings that those companies are working out of, and figure out how to make them more efficient and better accommodate the increasing demand. For example, let’s say that a shipping company now has more packages that need to go out same-day or next-day – square footage for that area of the facility must be taken away from areas that fulfill longer shipping times. Loading and unloading areas will need to be larger and longer. There will be more employees in that section. How can
that be done in a way that most efficiently utilizes the existing facility? What needs to be changed, installed, or removed? How can the company make sure it’s safe for the employees? It’s everything about the building itself, down to things like HVAC considerations – there might be a need for different A/C systems for facilities in hot and dry locations, like the southwest, to cool these newer, larger areas. Alex: Dan mentioned shoes, which brings up an interesting phenomenon in the e-commerce world. When ordering online, the customer does not have the ability to try on shoes or clothes for size. So, what a lot of consumers do is order the item in the size and color they think they need, plus they order the same item in one size below and one size above, in the hopes that one of those three will fit. With free return shipping, there is no cost to the consumer. Imagine what this does to the seller when it is not uncommon for two-thirds of their orders to be returned. The reverse logistics is incredible. Materials must be received, repackaged properly, restocked, and put back into active inventory in the system. It’s a lot of handling and effort, requiring personnel, equipment, and space. When it affects their space, that’s an opportunity for LDG. Dan: On another note, all these changes to e-commerce also tie into the alternative fuels services that LDG provides. A lot of companies are looking at significant increases in vehicle wear-and-tear and especially fuel consumption, and are interested in converting their fleets to options like compressed natural gas. We have extensive experience not only in building new compressed natural gas fueling facilities – including the largest such facility in the country – but also converting existing ones, which is an attractive option for these companies. “I think we saw the industry jump five years in 18 months due to demand from the pandemic and we saw a lot of companies push into the e-commerce space.” LDG: How does this help us or set us apart as an architecture & engineering firm? Rob: LDG has a lot of clients that we’ve been working with for a long time – in some
HEADQUARTERS: Williamsport, PA
YEAR FOUNDED: 1986 OFFICE LOCATIONS: 15 MARKETS:
■ ■ Commercial ■ ■ Community ■ ■ Education
■ ■ Energy ■ ■ Federal ■ ■ Healthcare ■ ■ Light industrial ■ ■ Retail ■ ■ State and local government ■ ■ Transportation ■ ■ Water/wastewater SERVICES: ■ ■ Alternative delivery ■ ■ Architecture and interior design ■ ■ Civil engineering ■ ■ Construction services
■ ■ Environmental ■ ■ Geotechnical engineering
■ ■ GIS/asset management ■ ■ Landscape architecture ■ ■ M/E/P engineering ■ ■ Permitting planning ■ ■ Structural engineering ■ ■ Survey and mapping ■ ■ Transportation engineering
See RETHINKING RETAIL, page 8
© Copyright 2022. Zweig Group. All rights reserved.
MAY 23, 2022, ISSUE 1442
Made with FlippingBook Annual report