2025, The Year of Generational Transformation

Welcome to Inside the Chain, a monthly newsletter by TMX Transform, sharing insights from top supply chain experts across industries such as retail, consumer packaged goods, grocery, infrastructure, manufacturing, postal, and more!

This month, TMX CEO and Co-Founder, Travis Erridge, reveals his predictions for the year ahead.

What are your supply chain priorities for 2025? Share them in the comments. ??

"2025 will be the year of generational transformative change, with most retailers and suppliers moving from short-to-longer term strategic shifts."

Key Takeaways for 2025?

This year is poised to be a transformative year. Companies that embrace strategic change and invest in future-proofing their supply chains and property portfolios will thrive in the years ahead.?

1. A Strong Supply Chain Strategy is Essential – Businesses must integrate supply chain planning with property decisions to remain competitive.?

2. Specialized Expertise is in High Demand – The race for talent in supply chain and property strategy will intensify, with early movers gaining a significant advantage.?

3. Scenario Testing Will Drive Smarter Investments – Digital modelling and ‘what if’ analysis will be crucial in navigating the uncertainties of global supply chain and property trends.?

The Shift to Long-Term Planning?

Last year, there was a notable increase in supply chain strategy development, network planning, and freight optimization. Now, many companies are intertwining long-term property strategies to optimize their footprints for cost efficiency and workforce availability.?

The key drivers for this strategic shift are:?

1. Stabilization of Trading Conditions – Consumer buying patterns have changed, requiring companies to rethink their operational models.?
2. Capital Costs and Inflation Management – The high cost of capital delayed investment in 2023 and 2024, but with inflation management and interest rates expected to decline in many regions, businesses are now shifting to a longer-term plan.?
3. Competitive Pressure – Retailers recognize that transformative change takes years, not months, and early movers will gain a strategic advantage.?

The Role of Property in Supply Chain Transformation?

Property decisions are becoming a critical element of supply chain strategy, with several key factors shaping the market in 2025:?

1. Shifting Market Dynamics –The demand for new warehouse space has declined, leading to rising vacancy rates globally. Subleasing activity is a lead indicator of end-of-lease vacancy, while 3PLs holding short-term space are expected to release it back to the market.?
2. Construction Costs and Material Availability – Inflationary pressures and material shortages are easing, reducing the cost of new developments and making construction more accessible for occupiers.?
3. Automation-Ready Facilities – As companies push for automation in distribution centers, property requirements are shifting. The need for buildings with sufficient power capacity, floor flatness, loading capabilities, structural integrity, and clear height is now a priority.?

Find out more in our latest property data: The Latest Occupier / Tenant Property Intelligence | TMX Transform | TMX Transform

This Year's Key Trends in Supply Chain and Property

1. Globalization vs. Localization?– Geopolitical tensions will drive short-to medium-term planning challenges. Companies will increasingly rely on dynamic modelling to explore ‘what if’ scenarios and adjust their property strategies accordingly.?
2. Automate or Eliminate – The trend toward automation in distribution centers and warehouse operations will continue, driven by unified commerce and changing consumer behavior. Businesses will focus on right-sizing automation investments to balance ROI against capital expenditure.?[Find out how we helped Arnott's implement automation into their new warehouse: Arnott's: Automation and warehousing redesign to resolve manufacturing inefficiencies | TMX Transform]
3. Digital Transformation?– The integration of supply chain systems with broader business decision-making will be a top priority. AI, machine learning, and data analytics will enhance business intelligence, with a focus on improving data quality rather than automating flawed processes.?

What's Next?

The supply chain sector is entering a transformative and exciting period. Businesses that proactively address these trends – optimizing networks, investing in digital capabilities, and adapting to new economic realities – will thrive in 2025 and beyond.

Tell us in the comments - what are your supply chain priorities for 2025? ??

For more information - Contact us here.