Season 4, Post 43: Breaking new ground
A must-attend event in your author’s diary is Groundbreakers. Prologis, the largest owner of industrial real estate (or big box warehouses) in the world first launched this forum of thought leadership in 2021. This year’s event took place live in New York last week and while your author was sadly unable to attend in person, virtual participation was well worth it. The idea behind Groundbreakers is to gather leaders from across the ecosystem of global commerce, energy, logistics and more to learn how they see the future. Our three main take-aways were –
Decarbonisation is top of mind. Almost every speaker emphasised the importance of sustainability in their strategic thinking. Such prominence is a function of both sales-push and customer-pull. Part of the impetus is pragmatism; if smaller businesses do not have the scale to implement solutions themselves, they are naturally looking to other players in the supply chain to provide them. ‘Energy as a service’ was a term used by several speakers. Practically, Prologis is installing solar panels on its warehouses as well as charging points for electric vehicles at them.
Expect to see more automation. A combination of rising labour costs, availability of appropriately trained staff and the falling cost of technology solutions is driving an acceleration in the pace of warehouse innovation. Two topics which occurred with regularity among the panellists present were cobots and drones. Collaborative robots (cobots), we were told, have the ability to “work hand in hand with people”, per one speaker and have higher (perceived) workforce safety relative to robots. They are also, often, cheaper. Meanwhile drones – for which we made the case recently – can help connect communities and enable business continuity. We concur.
Governments have a clear role to play. While the purpose of an event such as Groundbreakers is to be inspired by bottom-up innovation, almost every speaker highlighted that they could not go it alone. State authorities would, for example, need to take some responsibility in helping to build out renewable infrastructure whether in the form of a more extensive electric vehicle charging network or smart grids (we discussed the latter topic in detail earlier this year). Better grassroots education, particularly in STEM subjects was also deemed a priority. Lots of food thought. We’re already looking forward to Groundbreakers 2023.
3 November 2022
The above does not constitute investment advice and is the sole opinion of the author at the time of publication. Heptagon Capital is an investor in Prologis. The author of this piece has no personal direct investment in the business. Past performance is no guide to future performance and the value of investments and income from them can fall as well as rise.
Alex Gunz, Fund Manager
The document is provided for information purposes only and does not constitute investment advice or any recommendation to buy, or sell or otherwise transact in any investments. The document is not intended to be construed as investment research. The contents of this document are based upon sources of information which Heptagon Capital LLP believes to be reliable. However, except to the extent required by applicable law or regulations, no guarantee, warranty or representation (express or implied) is given as to the accuracy or completeness of this document or its contents and, Heptagon Capital LLP, its affiliate companies and its members, officers, employees, agents and advisors do not accept any liability or responsibility in respect of the information or any views expressed herein. Opinions expressed whether in general or in both on the performance of individual investments and in a wider economic context represent the views of the contributor at the time of preparation. Where this document provides forward-looking statements which are based on relevant reports, current opinions, expectations and projections, actual results could differ materially from those anticipated in such statements. All opinions and estimates included in the document are subject to change without notice and Heptagon Capital LLP is under no obligation to update or revise information contained in the document. Furthermore, Heptagon Capital LLP disclaims any liability for any loss, damage, costs or expenses (including direct, indirect, special and consequential) howsoever arising which any person may suffer or incur as a result of viewing or utilising any information included in this document.
The document is protected by copyright. The use of any trademarks and logos displayed in the document without Heptagon Capital LLP’s prior written consent is strictly prohibited. Information in the document must not be published or redistributed without Heptagon Capital LLP’s prior written consent.
Heptagon Capital LLP, 63 Brook Street, Mayfair, London W1K 4HS
tel +44 20 7070 1800
email [email protected]
Partnership No: OC307355 Registered in England and Wales Authorised & Regulated by the Financial Conduct Authority
Heptagon Capital Limited is licenced to conduct investment services by the Malta Financial Services Authority.
GET THE UPDATES
Sign up to our monthly email newsletter for the latest fund updates, webcasts and insights.