New-Concept JTC Factory Aims To Save Cost And Space

Source : The Business Times, June 24, 2008

'Practical' hoisting system to replace expensive cargo lifts

In a move that could optimise land use and help businesses save on rentals, JTC Corporation has come up with a new concept for a 'small footprint high plot ratio' standard factory to cater to small and medium-size enterprises (SMEs).

This factory is likely to be three storeys high, and take up a floor plate of 400 sq m.

With a total floor area of 1,200 sq m, the standalone facility would have a plot ratio of 1.3.

In contrast, JTC's standard factories today stand at two-and-a-half storeys, with a total floor area of between 1,200 and 4,200 sqm. Plot ratios range from 0.8 to 1.1.

Businesses, particularly those in heavier industries, tend to prefer larger ground floor space for the movement and storage of goods.

To address this need, JTC's concept includes a hoisting system that goes through every floor, to facilitate the movement of goods.

This system replaces the more expensive cargo lifts. The hoist is 'a practical and more economical option', says Colliers International managing director Dennis Yeo.

'For the new prototype factory, land rentals will definitely be lower than that of the existing standard factory in view of its smaller footprint and therefore smaller land take-up,' says a JTC spokesperson.

'The actual rentals will depend on the market situation when the new factory is launched.'

The building rent for JTC's standard factories ranges from $7.35 per sq m per month to $14 psm pm, and comes on top of land rent. Rents vary according to location.

To help reduce outfitting costs, the new factory concept would come with bolting points and corbels for companies to install customised handling systems, without having to obtain structural approvals.

And the switch room would be located on the roof top to free up more ground floor space.

'Small footprint high plot ratio' factories target SMEs which require smaller floor areas but cannot fit their operations into high-rise environments.

'Hence, this new factory design serves a different market segment from those in the flatted factories,' the JTC spokesperson says.

According to Soilbuild Group Holdings executive director Low Soon Sim, the design may be suitable for light engineering industries.

The concept is still under feasibility study. JTC will seek industry feedback in the third quarter before working out the details.

Knight Frank's senior manager of industrial business space Chow Kok Seng points out that heavier industries tend to handle bulkier goods, so a conventional hoisting system may not be suitable for them.

For instance, a company in a three-storey facility, Dynasty Lift Trucks Services, told BT that its hoisting system cannot carry items heavier than two tonnes.

It is looking to shift to a factory with a larger ground floor space to facilitate the handling of its goods.

The new factory concept comes as JTC looks for cost- and space-saving real estate solutions to maximise Singapore's limited land resource.

The idea could also catch on in the private sector. 'By coming up with this new concept, JTC will help to encourage private developers to adopt such a design for their standard factories,' says Mr Yeo.