Industrial Property: the end of car manufacturing in Australia and the advent of electric vehicles, will it affect industrial real estate?
Submitted almost 2 years ago by Alan Barry
The closure last week of the last car manufacturing plant by General Motors in Elizabeth in South Australia generated a lot of sympathy for those that lost their jobs and rightly so. It was not a surprise, as manufacturing automates production across all industries and the electric vehicle replaces the internal combustion engine the traditional car plant is disappearing across the world.
The result in our industry is a large amount of vacant industrial space that is not suited to any other purpose.
This trend is accelerating the article from the World Economic Forum; "This is how electric cars will transform our lives" explains in great detail the future demand for EV cars and how it will transform major economies especially as China, Europe and India go all electric in the next 10 to 15 years.
Australia has to plan and embrace this change. If Australia does not adapt, we run the risk of being left behind and ending up as a third world economy.
In the Industrial real estate market we need to be thinking ahead and planning for these changes as it will change the demand for: warehouse space required for parts, workshops needed for repairs and maintenance, showrooms and office space.
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