Turnkey Facility Relocation Solution Market is Estimated to Witness High Growth Owing to Rising Construction Activities

Market Overview:

Turnkey facility relocation solutions provide construction and relocation services for offices, warehouses, production facilities and other commercial spaces on a fixed-cost, turnkey basis. They handle all aspects of construction, permitting, logistics and move-in coordination to relocate businesses with minimal downtime.

Market Dynamics:

The growth of the turnkey facility relocation solution market is driven by rising commercial construction activities across the globe. Additionally, growing demand for facility relocation among businesses to reduce operational costs is also fueling market growth. Companies offering turnkey facility relocation solutions help businesses seamlessly relocate to a new location with consolidated services, thereby minimizing relocation time and expenses. Furthermore, rapid urbanization in developing regions is generating demand for commercial infrastructure, which is expected to create opportunities for players in the turnkey facility relocation solution market over the forecast period.

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Market driver: Growth in global outsourcing services

The demand for turnkey facility relocation solution has increased significantly over the past few years due to the rise in global outsourcing. Many companies are outsourcing their business processes such as manufacturing, customer service, accounting etc to third party service providers located in different countries to leverage lower costs. This has led to frequent relocations of entire facilities from one location to another. Turnkey facility relocation solution providers help in smooth execution of such complex relocation projects by taking care of various logistical, operational and compliance related requirements.

Market driver: Increasing merger and acquisition activities

Mergers and acquisitions between companies has emerged as a key growth strategy adopted by many businesses to expand their operations, customer base and product portfolio. Post M&A, the acquiring companies often look to consolidate facilities of the acquired entities which requires relocation of equipment and staff from multiple locations into single sites. Turnkey facility relocation solution ensures consolidation happens seamlessly through expert project management and customized relocation plans as per the business needs and timelines of customers. This is positively impacting the demand from manufacturing, healthcare and technology industries where M&A is very common.

Market restrain: Higher costs associated with turnkey solutions

While turnkey facility relocation solution provides a one-stop solution to customers, it comes at a higher price compared to selecting individual logistics, packing, installation and other support services separately. Customers have to pay premium for value added services like project management, site surveys, compliance assessments, documentation, staff training etc which are bundled as part of a turnkey package. This acts as a major deterrent for cost sensitive customers who prefer piecing together various requirements to save costs. Turnkey facility providers need to find ways to optimize costs without compromising on service quality.

Market Opportunity: Relocation needs of growing e-commerce sector

The e-commerce industry has seen exponential growth over the last few years with the proliferation of smartphone usage and growing internet penetration. In order to meet rising consumer demands, e-commerce companies are rapidly adding fulfillment centers, customer service facilities and data centers across major geographical markets. Their frequent requirement for relocation of infrastructure and manpower within regions or overseas presents a large opportunity for turnkey facility relocation solution providers. With their proven expertise, turnkey players can partner such new-age companies and help manage their expansion needs seamlessly through customized solutions.

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