If you’re thinking of renting a space for your business, you may be wondering whether it’s better to get a warehouse or a factory for rent in Bangkok. Although both provide space and storage, they serve different purposes. In this blog post, we are going to compare warehouses with factories so you can decide better which one suits the needs of your business best.
What is a warehouse?
This is a space designed for storing products before they are shipped out. It is not meant for manufacturing and doesn’t possess the amenities or facilities for that. Some common features are:
- Being located near highways, airports, ports, and other transportation hubs
- Basic infrastructure focused mainly on storing, shelving, and handling products
- Wide and open storage spaces for keeping a large amount of inventory of goods
What is a factory?
This is a space designed for producing or manufacturing goods. It is specifically used for worker operations, machinery, and production lines. Some of its common features are:
- Being in industrial estates where there is quick and easy access to skilled laborers
- Heavy-duty infrastructure such as ventilation systems and a backup power supply
- Large, open spaces for putting in assembly lines along with necessary machinery
Key Differences Between Warehouses and Factories
The purpose of the space
Warehouses are used for storage and distribution, while factories are used for production. The former focuses on space for storing products, while the latter provides specific facilities for operations like high power, equipment, and assembly lines.
The size and the layout
Warehouses are designed to provide easy access to inventory through simple racking systems and shelving. Meanwhile, factories need high ceilings and strong floors in large, open spaces for holding important machinery.
The infrastructure and utilities
A warehouse mainly needs basic power for the lights and an air conditioning system for climate control. However, factories require specialized utilities for gas, water, and electricity for producing goods that match the expected quality.
Budget and Cost Considerations
Warehouses are typically cheaper since they focus primarily on storage, although you may have to pay additional for top security. They are also simpler to maintain with fewer operational costs. On the other hand, factories are expected to cost more since they require workers, machinery, power, and other infrastructure. They also have higher maintenance because of specialised equipment or machinery.
Transportation Considerations
Both warehouses and factories need quick and easy access to ports and highways for distribution purposes and overall convenience. Being close to freight forwarders is necessary for every supply chain, as warehouses need access to shipping services while factories need access to raw material supplies. If you can find either of these structures in an industrial zone, it would be the ideal option for you.
Conclusion
Choosing between a warehouse or factory depends solely on the needs of your business. If you are focused on storage and distribution, a warehouse is likely the right choice. However, if you are focused primarily on manufacturing, a factory is definitely the better option. Either way, when you understand the differences between these two, you will be able to make the best decision for your business.
If you need a hand in making your choice between a warehouse or a factory, get in touch with us at Rangsit Prosper Estate. We provide both commercial warehouses and factories for rent in Bangkok, and we build to suit your specific business needs.
