Change Accelerates in Supply Chains and Industrial Real Estate

Posted on January 27, 2020

By Aaron Ahlburn

How advancements in transportation, technology, and construction continue to converge.

Global economic uncertainty, rapid technological advances, and pressure from e-commerce are forcing radical innovation in supply chains. With transportation and the movement of goods and materials making up a significant portion of total logistics operating costs, these innovations are altering the logistics landscape. They allow supply chain and transportation managers to focus on cost efficiency, profitability, and service to clients.

However, changes in individual sectors of logistics are not progressing at the same pace. Some are being deployed. Others may not live up to expectations. As trends such as faster e-commerce fulfillment, more urban deliveries, and autonomous trucking and robotics continue to converge, what will be the impact on industrial real estate?

Conceptually, these trends can be segmented into a few different categories: those affecting transportation and the movement of goods; geographic and site-selection trends; innovations in warehouse design and development; and other technological innovations that can bring greater operational efficiency to logistics operations.

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