Dive Brief:
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UPS Inc. could be planning a third "mega" shipping hub near downtown Atlanta, the Atlanta Business Chronicle reported.
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The shipping giant's potential new facility will be part of the Majestic Logistics Center, which is in close proximity to Fulton County Airport. The company will also be able to utilize Hartsfield-Jackson Atlanta International Airport, the world's busiest passenger airport.
- UPS' two other large-scale shipping facilities are in Louisville, KY, and Ontario, CA. The Atlanta expansion is seen as a logistical necessity in response to the continuing rise in e-commerce activity, according to the Business Chronicle.
Dive Insight:
Consumer desire to order goods online and to have them shipped as quickly as possible — even same day — is driving UPS' improvement efforts. But enhancing its own operations is only part of the story. A state-of-the-art shipping facility is sure to draw to Atlanta e-commerce companies as well as brick-and-mortar retailers looking to build distribution centers as part of their online sales strategies.
Online sales have risen about 15% annually for the last six years and are expected to reach at least $523 billion by 2020, Internet Retailer reported. While these figures might be causing stress for retailers that have bet heavily on physical locations, it's great news for the construction industry. According to Dodge Data & Analytics 2017 Construction Outlook report, warehouse construction should keep growing to meet demand.
The proliferation of distribution centers has edged out new retail construction slightly, but Richard J. Burstein, partner at Honigman Miller Schwartz and Cohn, told Construction Dive earlier this month that the impact on physical stores has not been as severe as some anticipated. He said the drive to create better and unique customer experiences might change the "the look and layout" of retail spaces, but there will be "plenty of brick and mortar stores."