Emerging Trends Shaping the Future of Manufacturing Facility Construction
The manufacturing sector is undergoing significant transformations driven by technological advancements, changing market dynamics, and new regulatory incentives. As businesses strive to stay competitive, several key trends are emerging that are redefining the design and construction of modern facilities. As these trends continue, it will become critical for developers and end-users to partner with an experienced general contractor with expertise in the complexities associated with manufacturing projects.
Onshoring and the Shift Toward Smaller Facility Footprints
Onshoring and a focus on supply chain resilience has caused the manufacturing industry to drive demand for industrial space. The trend of onshoring, driven by government incentives like the Inflation Reduction Act and the CHIPS and Science Act, is influencing the development of smaller-scale manufacturing projects. Typically ranging from 200,000 to 300,000 square feet, these projects aim to enhance supply chain reliability by positioning automated manufacturing capabilities closer to end customers. This shift is not just about building individual facilities but about establishing a robust network that supports a resilient supply chain. These strategically located facilities are designed with automation and efficiency in mind, positioning businesses to better respond to market demands.
Pictured: ARCO is currently building a 297,440 SF manufacturing facility for Elopak, a leading global supplier of carton packaging and filling equipment. Located in Little Rock, Arkansas, the facility will be Elopak’s first U.S. production plant and will feature the latest state-of-the-art technology for better and more efficient production and will produce the company’s Pure-Pak® cartons, a complete and flexible packaging system for liquid dairy, juices, plant-based products, and liquid eggs.
Pictured: Located in Sanford, Florida, this 110,050 SF manufacturing facility completed by ARCO for Kemco Industrial, LLC features a design with accommodations for a 100,000 SF future expansion.
Specialized Infrastructure and Design Flexibility for Futureproofing
In today’s fast-paced manufacturing environment, flexibility in facility design is crucial for futureproofing. Companies are increasingly incorporating adaptable features, such as moveable equipment and redundant mechanical systems, into their facility designs to allow for easy future expansions. This approach not only supports immediate operational needs but also ensures long-term sustainability and efficiency. Many facilities now also feature flex spaces that seamlessly combine production and management areas, fostering cohesive and streamlined workflows.
Additionally, to accommodate advancing technology, modern manufacturing facilities are being equipped with specialized features, such as higher clear heights, abundant dock doors, extensive trailer parking, and advanced waste drainage and ventilation systems. These elements are essential for supporting the complex requirements of today’s manufacturing processes, particularly in specialized sectors. Long-range planning is also becoming a standard practice, with current facility designs being developed to easily accommodate future expansions and changing technology and operations.
Rise in Automation and Advanced Technology
The adoption of advanced automated technologies is revolutionizing manufacturing operations. Innovations such as artificial intelligence (AI), the Internet of Things (IoT), digital twins, machine learning, augmented reality (AR), and virtual reality (VR) are streamlining workflows, reducing labor costs, and significantly enhancing overall efficiency. These technologies allow manufacturers to optimize production processes, minimize downtime, and respond swiftly to changing market demands. As a result of these advancements, “dark factories,” which operate with little to no human intervention, are becoming more common, thanks to capabilities like remote monitoring.
Pictured: Located in Arvin, California, this 270,000 SF manufacturing facility for Scannell Properties and Plant Prefab is the modular home builders first automated facility. ARCO offers clients automation consulting services and provides expert guidance in selecting the most suitable technologies for overall efficiency.
Pictured: ARCO recently completed this 150,000 SF manufacturing facility for Scannell Properties and Watson-Marlow Fluid Technology Solutions. Designed with green building practices, the project is LEED® Gold certified.
Increased Focus on Energy Efficiency
The U.S. has shifted from relying on imported energy to incentivizing ESG initiatives to become a global net energy exporter. This transition is driving demand for facilities that can reduce carbon footprints and align with corporate sustainability goals. The Inflation Reduction Act is the largest investment in clean energy in U.S. history, and incentives can range from tax credits to grants for sustainable efforts as simple as swapping outdated lights with LEDs or as comprehensive as constructing new facilities that can support renewable energy integration.
The direct payment and transferability of tax credits can provide alternative financing structures for investments in the manufacturing sector, creating new opportunities for developers and end-users. ARCO is expertly qualified to build LEED facilities that align with these green initiatives, ensuring that new construction meets both current and future sustainability standards.
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NATIONWIDE MANUFACTURING EXPERIENCE & EXPERTISE
As the manufacturing sector continues to evolve, staying ahead of these trends is crucial for companies looking to optimize their facilities and maintain a competitive edge. ARCO National Construction remains at the forefront of these developments, delivering cutting-edge solutions that meet the unique needs of each client and ensuring their facilities are built for the future.
