Analyst Insight: As the economic recovery proceeds, companies should be changing their sights from mere tactical cost-cutting measures to more strategic improvement initiatives. Productivity increases and cost containment are now considered a given at the leading companies. The bigger benefits are coming from companies that are integrating logistics and distribution more broadly into innovative supply chain improvement strategies.
The economy has not been good to this sector, says Walt Rakowich, ProLogis CEO, but some trends in industrial real estate are very promising. First, there is growing demand for sustainable warehouses. Second, a combination of GDP spurts and natural obsolescence of buildings stimulates construction.
Recession, congestion and the development of alternative gateways are among the factors causing ports and carriers to rethink how they handle international freight with maximum efficiency.