{"id":4997,"date":"2026-06-02T13:56:50","date_gmt":"2026-06-02T10:56:50","guid":{"rendered":"https:\/\/www.sirin.eu\/?p=4997"},"modified":"2026-06-02T13:59:01","modified_gmt":"2026-06-02T10:59:01","slug":"l-kuzavas-ai-is-reshaping-logistics-chains","status":"publish","type":"post","link":"https:\/\/www.sirin.eu\/en\/l-kuzavas-ai-is-reshaping-logistics-chains\/","title":{"rendered":"L. Kuzavas: AI Is Reshaping Logistics Chains"},"content":{"rendered":"\n

Over the past five years, businesses have experienced it all: from the Taiwan semiconductor crisis to disruptions in Russian supply chains and the energy price shock in Europe. Logistics is evolving, and today, advanced real estate developers are no longer observers\u2014they actively shape environments that enable businesses to grow faster than the market.<\/strong><\/p>\n\n\n\n

Supply chain shortening (nearshoring), fluctuating energy costs, and AI solutions are reshaping both business thinking and attitudes toward warehousing. Geopolitical developments have revealed that what was long considered \u201cefficiency\u201d has now become \u201crisk.\u201d And what used to be \u201cjust a warehouse\u201d is now turning into a strategic decision-making hub for every business.<\/p>\n\n\n\n

As SIRIN Development\u2019s experience in the Baltic states demonstrates, logistics real estate is undergoing transformation. This shift is accelerating\u2014from passive assets to active infrastructure, ecosystems, and platforms. Moreover, Lithuania, Latvia, and Estonia are advancing faster in this area than experts had anticipated.<\/p>\n\n\n\n

1. Supply Chains: From Efficiency to Resilience<\/h3>\n\n\n\n

The key market shift is clear: production and inventory are moving closer to the end consumer. The pandemic already forced manufacturers to relocate production from Asia back to Europe, but the Taiwan semiconductor crisis proved that a single geopolitical factor can halt entire industries. Russia\u2019s removal from supply chains further highlighted the speed of change. Events in the Strait of Hormuz have demonstrated a new dynamic\u2014market conditions can shift not in days, but in hours.<\/p>\n\n\n\n

What does this mean for businesses? The European warehousing market is estimated at approximately EUR 345 billion, with projections suggesting growth to EUR 610 billion within a decade\u2014an increase of about 1.5 times. This is not a cycle, but a structural transformation creating significant opportunities for the Baltic region. Industries such as timber and light manufacturing continue to grow even in severe \u043a\u0440\u0438\u0437\u0456 conditions, making cost efficiency and speed of delivery critical to survival.<\/p>\n\n\n\n

Additionally, the war in Ukraine has driven up labor costs across Europe. As a result, having production and storage facilities closer to home provides tangible advantages. In some cases, facilities in neighboring countries can become a lifeline, as modern production equipment can now be relocated very quickly.<\/p>\n\n\n\n

2. Energy: A New Limiting Factor<\/h3>\n\n\n\n

Historically, business expansion was constrained by land and capital. Today, the key question clients ask is simple: do you have sufficient electricity capacity? In many European regions (including the Baltics), power grids are already operating near their limits, making energy a real bottleneck for growth. Location alone is no longer enough\u2014the winners are those with ready-to-use infrastructure: electricity, water, access, and construction permits. Investors now prioritize speed-to-operation over geography.<\/p>\n\n\n\n

What does this mean for companies? In some sectors, energy accounts for 20\u201330% of total production costs. Therefore, decisions cannot be based solely on initial price. The cheapest option upfront can become the most expensive if it limits long-term energy cost control.<\/p>\n\n\n\n

A++ class buildings and smart systems can reduce energy consumption by up to 30%, directly lowering risk and improving financing conditions. ESG is also changing its meaning\u2014it is no longer just about \u201cgreen solutions,\u201d but about managing costs, risks, and access to capital.<\/p>\n\n\n\n

And sustainability today also includes working conditions. Modern, well-lit, ergonomic spaces reduce errors, increase productivity, and become a real driver of efficiency\u2014not just a reputational factor.<\/p>\n\n\n\n

3. Warehouses: From Space to Automated Systems<\/h3>\n\n\n\n

To be blunt, the biggest mistake in 2026 is evaluating warehouses based on price per square meter. Why? Because it says nothing about quality.<\/p>\n\n\n\n

Today, what matters is volume, efficiency, and management. Advanced developers are moving from 8\u201310 m to a 12 m standard height, allowing clients to generate up to 20% more usable volume from the same footprint.<\/p>\n\n\n\n

What does this mean for the market? Modern high-bay warehouses in Europe are reaching heights of up to 40 m. As labor becomes more expensive and less available, technology is no longer optional\u2014it is essential. Automated warehouses must be spacious and easily maintained by both robots and human workers. The era of robotics in warehousing has already begun.<\/p>\n\n\n\n

This is already happening in practice. For example, Sakalas has implemented robotic storage systems in the Liepkalnis logistics park, improving flow management and attracting attention from U.S. clients. Such solutions require suitable physical infrastructure: ultra-flat floors, high buildings, and precisely designed layouts that allow automation to be integrated without additional costs. For clients, this is not innovation for its own sake\u2014it is a direct response to labor shortages and efficiency pressures.<\/p>\n\n\n\n

4. AI as a Decision-Making System<\/h3>\n\n\n\n

Logistics facilities are increasingly becoming data management platforms. Building management systems, energy monitoring, and microclimate control ensure operational transparency that directly impacts profitability. Up to 40% of warehousing demand in Europe is driven by e-commerce, meaning warehouses are no longer storage sites\u2014they are distribution hubs that influence sales and customer experience.<\/p>\n\n\n\n

The greatest transformation is happening in decision-making. Around 75% of logistics companies use digital platforms, while automation is growing more than twice as fast. AI is reshaping both processes and decision logic\u2014it enables the creation of new supply chain models, simulation of scenarios (price spikes, disruptions), and real-time demand and price forecasting.<\/p>\n\n\n\n

In practice, we already see this in our own projects. We apply AI to optimize costs, enabling our clients to manage energy, transport, and inventory expenses more accurately in real time. We are also witnessing rapid growth in AI adoption in inventory management.<\/p>\n\n\n\n

What Mistakes to Avoid in 2026?<\/h3>\n\n\n\n

Experts in London, Riga, and Berlin agree: the biggest mistake is waiting for stability. The focus should be on building systems that function in unstable environments.<\/p>\n\n\n\n