Warehouses

 

Good News or Bad?

   Good news is rather rare these days, but some has appeared in our local region. There have been many positive headlines about the construction of new warehouses and the potential arrival of Amazon in our area. Here is one of them along with a few opening sentences:

"A Windfall and a Shakeup; An Amazon Centre Would Bring Money and Force Retailers to 'Up Their Game'," Norman De Bono, The London Free Press, May 28, 2021.

An Amazon packaging and distribution centre landing on London's doorstep would be an immediate windfall for the local economy, say retail industry observers.

The building of what may be a massive, e-commerce hub, buying a host of support services, generating tax revenue and paying workers wages all would be an injection of cash locally.

But its long-term impact on the retail sector, as it pushes consumers even faster into the e-commerce economy, will bear watching as it may hurt brick-and mortar shops slower to embrace e-commerce.

Questions could be asked about this 'windfall' and how tight our embrace of e-commerce and Amazon should be, but I am more concerned about this headline: 'Amazon Plans to Expand Southwestern Ontario Footprint with 2 London Warehouses: The Company Says There, Will Be 200 Warehouse Jobs Available, 130 Delivery Drivers." (CBC News, May 27, 2021.) The jobs may be good and the 'windfall' may last, but surely the Footprint will last even longer and be difficult to erase. 

The 403

   The news is even more euphoric in The Brantford Expositor. The reasons for that are easily spotted as one drives from London to Hamilton. You may recall that before the 403 was completed the drive took longer, but was certainly more scenic. On the east side of Brantford the fields are now full of warehouses and it is likely the ones between Woodstock and Brantford will be as well.  Soon we may dread the drive along the 403, just as we much as we dread seeing the HTTP 404 message on our computer, as a symbol of what has been lost.

   My objection is not an aesthetic one, it is agricultural in nature. Should prime agricultural land, which is a rare commodity in Ontario, be turned over for such a purpose? Would we not be better off growing crops, rather than constructing warehouses? And, given what has been made obvious by the pandemic, wouldn't we be better off making things ourselves locally rather than distributing goods made by others far away?

Sources: 

   I will not attempt to skew them, in favour of my position. If you want to read some positive articles you can start with The Brantford Expositor. For example: "New Warehouse Centre Backed by City Council," Oct. 7, 2020 and "Growth in Warehouse Industry Continues," where it is noted that:  In the county, warehousing and distribution employs approximately 1,400 people and represents about five per cent of all business in Brant. By way of comparison, agriculture represents 13 per cent, retail nine per cent and manufacturing seven per cent. (April 13, 2021.) I did note at the end of one article where it was mentioned that "Supply Chain Management" was being taught in support of such developments that:  “It is generally accepted that global supply chains have reduced costs and increase the range of options available to businesses and consumers alike. However, businesses, academics and policymakers have tended to underplay the risks associated with this process of globalization.”

There is also one article to be found about some Indigenous opposition: "Activists Support Protecting Land for Future Generations," TBE, May 8, 2021.

   For a recent article from the United States, questioning the covering of the land with warehouses see:

"A New Crop in Pennsylvania: Warehouses: Huge facilities have sprouted up in and around the Lehigh Valley, fueled by the astonishing growth of e-commerce. Some residents say the area’s landscape and long-term economic health could be threatened.

Michael Corkery - May 26., 2021, The New York Times. 

“They are coming here and putting up shiny new warehouses and erasing pieces of history,” said Juli Winkler, whose ancestors are buried in the Maxatawny cemetery. “Who knows if these big buildings will even be useful in 50 years.”

Developers are very confident in the industry’s growth, however, particularly after the pandemic. Big warehouse companies like Prologis and Duke Realty are investing billions in local properties. Many of the warehouses are being built before tenants have signed up, making some wonder whether there is a bubble and if some of these giant buildings will ever be filled.

“People are calling it warehouse fatigue,” said Dr. Christopher R. Amato, a member of the regional planning commission. “It feels like we are just being inundated.”

   See this site, presented by the Ontario Federation of Agriculture: Prevent Ontario's Food and Farms From Disappearing Forever. 

"Food Growers Issue Urgent Plea to Preserve Ontario's Shrinking Farmland Base," Doug Schmidt,  Windsor Star, May 28, 2021  

Amazon is Everywhere: On June 11, this article is found in the Times Colonist - "Amazon Rumours Continue to Swirl in Langford and Sidney," by Darren Kloster.

The Bonus:

  Jeff Bezos is taking a trip on July 20 to the edge of space. Someone just paid $28 Million to have a seat next to him for the ride, which will take less than 28 minutes.