January Market Insights
US Warehouse Vacancies Expected to Fall from 2024 ‘Peak’
As industrial logistics and warehousing capacity tightened during the COVID-19 pandemic near completion, warehouse space has become more widely available in the U.S. following the Great Destocking of 2023. The average U.S. industrial vacancy rate rose to 6.8% in Q3 2024, the highest since before the pandemic, though still below the pre-pandemic average. While vacancy rates in some areas, like Southern California’s Inland Empire, saw declines as e-commerce demand rose, overall demand for logistics space remained soft.?
However, with U.S. imports still rising and manufacturing expected to grow in 2025, developers anticipate that space will tighten again. Warehouse providers are already warning of potential capacity shortages and rising rents, prompting some companies to secure space early to position themselves for growth. Factors such as U.S. manufacturing, trade disruptions, and changes in trade policy could further influence demand dynamics in the coming years.
Join WarehouseQuote at the Retail Industry Leaders Association (RILA) Conference in February
Attending RILA in Orlando next month? Join us and learn about WarehouseQuote's latest technology and operational innovations surrounding inventory management and fulfillment compliance.
WarehouseQuote Launches Q1'25 Warehouse Pricing Index Report
Last week, WarehouseQuote launched its Q1 ‘25 Warehouse Pricing Index Report helping logistics and supply chain managers make confident supply chain decisions with national and regional warehouse pricing insights. Check out the full report in the link below.
How Retailers and Manufacturers are Navigating Tariff Concerns
President Donald Trump plans to introduce new tariffs, building on strategies from his first term, when he imposed duties on products like solar panels, steel, and apparel. His proposed plan includes a 25% tariff increase on goods from Mexico and Canada and an additional 10% tariff on imports from China. These moves would supplement the Biden administration's recent tariff hikes, including the December increase on Chinese wafers, polysilicon, and tungsten products, as well as significant tariff hikes on semiconductors and electric vehicles. As Trump’s win in November has raised concerns about the shifting trade landscape, manufacturers and retailers are bracing for potential impacts on global supply chains.
领英推荐
WarehouseQuote Sibling Company Launches Data Entry Automation Software named briefli
WarehouseQuote has launched a new supply chain technology company, WareHQ Labs, which debuted its first product, briefli. The product is a data entry automation solution that helps supply chain companies minimize data entry processes and focus more on customers.
Quality Distribution, a Salt Lake City 3PL Provider, was able to save hundreds of labor hours annually by implementing briefli.
“We began using briefli with the goal to minimize manual order entry, increase accuracy and ultimately help our team focus more on customer support and relationship vs data entry. We quickly realized how beneficial and impactful briefli can be for us now and in the future, briefli has exceeded our expectations and continues to add value.” - Steve Bohin, CEO at Quality Distribution
More information on briefli can be found at briefli.ai
Supply Chain Management Trends to Watch in 2025
In 2024, supply chain professionals faced significant disruptions, including increasing tariffs, labor unrest, and extreme weather events, highlighting the need for more resilient and adaptable supply chains. As companies prepare for potential challenges in 2025, several trends are expected to shape the landscape. Diversification of sourcing, particularly away from China, is key as geopolitical tensions and tariff pressures rise.?
Automation and AI are set to accelerate, with technology improving inventory management and forecasting, though fully automated "dark warehouses" remain a distant future. The rise of consumer-facing supply chains has made inventory management and consistent customer experience crucial, pushing retailers to enhance product delivery solutions, including last-mile delivery. Labor and transportation costs are expected to rise, with a growing shortage of skilled workers and increasing trucking rates.?
Additionally, cargo theft and cybersecurity threats are major concerns, prompting federal action and increased focus on protecting digital and physical supply chain assets. As demand for nimble, responsive supply chains intensifies, companies will need to embrace technology, diversification, and resilience to stay competitive in 2025.
Chief Executive Officer
1 个月Big changes are on the horizon for supply chains in 2025! From AI-driven logistics to increased resilience strategies to managing through tariffs, the industry is evolving fast. Adaptation will be key!?