Q2 (April, May, June) 2023 has been an exceptional time frame for engineering & manufacturing firms as the sector has witnessed a rise of 197 percent in office leasing activities. The demand for managed offices in the past few years has surprised even the industry leaders as occupiers are now looking for smart workplace solutions in Tier 2 cities as well. There are several sectors that experienced an exponential rise in office leasing during Q2 2023 including Technology being the most dominating with 26 percent followed by of course Engineering & Manufacturing, Flex Spaces, BFSI, Healthcare & Pharma with 21, 17, 15, and 4 percent respectively.
One of the most surprising outcomes of Q2 2023 has been the rise of Engineering & Manufacturing firms in commercial leasing. According to reports, industry-specific trends, technological upgrades, and several policies from authorities lead to the growth in the engineering sector. The introduction of tools like ChatGPT, AI-image Generator, and many others are creating a prominent impact on the growth of a business. Apart from this, machine learning, blockchains, and metaverse are playing a significant role in the upliftment of engineering & manufacturing firms.
Moving further in this blog, we will try to forecast the future of engineering & manufacturing firms along with the benefits they can fetch by leasing flex spaces.
Future of Engineering & Manufacturing Firms in India
Data shows that Technology, E-commerce, EdTech, and FinTech companies have dominated office space leasing in India for the longest period. But now the trend has gradually shifted towards other sectors as well, with the rise of engineering & manufacturing, healthcare, and other sectors as well. This shows that not only MNCs, but large and emerging domestic corporates are showing a high interest in flexible office space leasing.
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Coming back to the focal point of the blog, let’s take a glance at the facts and figures and try to predict the future of engineering & manufacturing firms in India.
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According to a report by Genius Consultants, around 77 percent of Indian companies are expected to consider both replacements and new hirings in 2023-24 for several top and managerial-level positions. The report was based on an online survey from sectors including engineering & manufacturing, real estate, construction, banking & finance, FMCG, and many other sectors.
Substantial transformation in the work culture and overall office space segment has played a major role in lowering attrition rates. Factors like flexible work models, top-notch amenities, and work appreciation have contributed significantly to retaining the valuable resources of the company.
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2023 is unarguably going to be one of the best periods for engineering & manufacturing firms. According to the “Decoding Jobs 2023 India Report”, the hiring of manufacturing professionals will increase on a massive scale with almost 60% of its workforce will belong to Tier-2 cities. This report creates a direct link between office space leasing in Tier-2 cities.
Cost-effective solutions have created a sense of awareness among entrepreneurs. As a result of that, many large and established corporates are now looking forward to leasing shared office spaces at prime locations in Tier-2 cities as well. This will not only provide ample opportunities for engineering & manufacturing companies to implement the modern workplace trends
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The authorities of India have seen massive potential in the manufacturing and construction sector to empower the economy. This encouraged them to take numerous initiatives including Smart Cities, Make in India, and IDFC (Infrastructure Development Finance Corporation). With all these aspects in the middle, the value of manufacturing projects in June 2023 ended at Rs 11.7 trillion.
Considering all these facets of the engineering & manufacturing firms, it will be right to predict that the future of this sector looks more promising than ever before. Now let’s discuss the benefits that engineering & manufacturing firms can get after leasing managed workspaces.
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5 Benefits of Flex Spaces to Engineering & Manufacturing Sectors
Flex spaces offer several benefits to engineering and manufacturing firms, providing them with versatile and adaptable work environments. Here are some of the advantages:
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Cost Efficiency:
Flex spaces allow engineering & manufacturing firms to optimize their space. Here, businesses can easily design the layout and make adjustments according to their dynamic operations. This flexibility helps in reducing space wastage and, consequently, lowers overall real estate costs.
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Scalability:
Flex spaces are ideal for firms experiencing growth or seasonal fluctuations in their operations. Whether they need to accommodate additional staff or temporarily expand production, flex spaces enable them to scale up or downsize as required without committing to long-term leases.
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Collaboration and Innovation:
Flex spaces often promote an open and collaborative atmosphere. Engineering and manufacturing teams can work together in a shared space, fostering better communication and knowledge sharing. Such an environment can spur creativity and innovation, leading to the development of new ideas and solutions.
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Access to Amenities:
Many flex and managed office space operators offer access to various amenities, such as fully equipped workspaces, advanced tools, shared meeting rooms, private cabins, parking facilities, and much more. This access to additional resources can help firms augment their capabilities without investing heavily in new equipment or facilities.
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Reduced Administrative Burden:
Renting a traditional office or manufacturing space involves managing various aspects like maintenance, security, utilities, etc. With flex spaces, these responsibilities often fall under the purview of the space provider, freeing up the firm's resources and time to focus on core engineering and manufacturing activities.
So, it won’t be wrong to anticipate that the present and future of engineering & manufacturing firms look promising and that businesses will be able to leverage the opportunities appropriately.
