While the coronavirus pandemic took hold last year, the rising need for logistics and warehouse space quickly escalated and fast-tracked the industry to what seems an unstoppable trajectory of growth. To gain some further insight on the significant changes taking place, we talked with Paul Kristedja, Founding Partner and Chief Operating Officer, on how KPRS is staying at the forefront of this rapidly moving market.
You’ve overseen industrial projects of all sizes for the past 30 years, can you share from your perspective some of the major changes have you observed in the industrial sector this last year?
We can all agree we’ve seen how the pandemic has had far-reaching effects that have spread to all major markets this past year. At KPRS we’ve been very fortunate as an essential service to keep building for our clients. Despite all the challenges we’ve faced, each of the markets we serve have continued to grow this last year, and our industrial sector is no exception. Commerce activity across the country has skyrocketed due to the ease and safety of shopping from home with the pandemic. Even with the economy reopening, the convenience of online retail is here to stay. This in turn has created a staggering demand for logistics center construction throughout major cities and beyond.
On the other side of this demand, we’re also seeing the rising cost of materials. This is a global issue, where we saw the price of wood increase last summer, and now with steel and other commodities. Despite all of this, we are seeing some prices starting to level out toward pre-pandemic costs, and we’ve been able to effectively work together with our clients to provide alternatives that best fit the needs of any project. Our preconstruction group regularly obtains pricing updates from material suppliers, and we talk daily to our subcontractor partners. We've gained a wide perspective on market behavior and we’re able to notify our clients of further changes we can anticipate.