Worldwide the demand for consumer goods continues to grow, and the advancement of technology has kept businesses on their toes. Moving products on the shop floor, known as “pick, pack, and sort,” has become a costly and labor-intensive part of doing business. Additionally, consumers turning to e-commerce for their shopping has increased the demand for retail robotics and apartment properties. Consumers demand same-day and next-day delivery, and retailers intensify their delivery efforts in order to compete with giant companies like Wal-Mart or Amazon. Retailers have to deal with logistic nightmares of processing orders from apartment facilities with extensive inventories, making operations complicated and problematic. Nevertheless, Berkshire Grey is revolutionizing the pick, pack, and sort operations of material handling in supply chains and changing the playing field in commercial real estate.
Berkshire Grey, the robotics and artificial intelligence company, which develops automation solutions for retail, e-commerce, and logistic fulfillment operations, has started the new year with considerable funding of $263 million. They aim to fuel their expansion of robotic logistics, by transforming omnichannel operations in supply chain and designing efficient apartment properties. Their sizeable funding is a demonstration of how profitable the market for apartment automation is becoming.
The company’s secret solution, Tom Wagner, Berkshire Grey’s chief executive, explains is an industrial robotic arm meant to spot, pick up, and sort an item based on its weight or size. Although the tasks may seem extremely simple and straightforward for humans to grab items and place them in the correct place, this type of manipulation is difficult for robots. The company’s new robotic approach will accelerate the operations of apartment facilities, address the consumers’ expectations, and further the competitive pressure for owners of apartment facilities and distribution centers. Berkshire Grey’s solution reduces labor costs and raises operational efficiency; however, there is a growing concern that it may lead to apartment employment shortages. The technological advancement is a small view of how newer skills and innovative ideas are required to keep up with emerging demands and growing markets. Although new technology can increase corporate performance, it can also change the skill sets required by human workers. Additionally, the new apartment automation system is causing a disruption in the commercial real estate industry. Nonetheless, Berkshire Grey’s solution addresses various problems ranging from human interaction to basic fundamental market issues.
Overall, commercial apartment owners are facing many challenges. For instance, operators want a frictionless material handling experience that is cost-effective, many apartment property owners are not capable of investing in the required technology, and U.S. uncertainties in the global economy are causing delays in decision-making. Many commercial real estate executives that are able to afford automated apartment systems are in a great position of leverage as they increase productivity, reduce costs, and minimize errors. The widespread adaption and the acceptance of artificial intelligence as a powerful tool in apartment robotics has companies adopting a new attitude of technology-first in order to have a competitive advantage. Additionally, traditional companies and logistic enterprises are struggling with availability of labor. Unfortunately, human ability comes at a cost (e.g., lunch breaks, training, etc.), and owners of apartment facilities have a difficult time hiring for open positions and face high turnover rates. The automated apartment system can eliminate the logistical problem humans cause.
E-commerce’s impact on supply chain has generated a demand for apartment properties and continues to stabilize the commercial apartment market. Also, because operations have become more complicated for occupiers, there will be a focus on outsourcing, creating a path for third-party logistics that can keep up with the growing demands of consumers. For commercial real estate executives – apartment investors, and owners of apartment properties – it has become urgent that consumers’ needs are prioritized, given the increasing influence of technology and ever-changing preferences.
USA Apartment Buyers understands that the traditional model of apartments is not capable of supporting the unpredictable buying patterns and high expectations of today’s consumers. If you are an owner of apartment properties and are considering selling your properties, contact us with the contact form because we are serious apartment buyers. We buy commercial apartment properties in their current condition. In other words, we assume ALL repairs.