Global Trade Patterns: The Acceleration of Nearshoring and Re-Shoring
A shift in global trade patterns continues to highlight two important themes: nearshoring and re-shoring. Nearshoring being the accelerated recalibration of supply chains in neighboring counties, and re-shoring being the increased investment of manufacturing in the US.
While decelerating demand is partially a factor for global shifts, US imports from Mexico have demonstrably outpaced China, with potential implications not only for logistics networks but also manufacturing. Direct investment in Mexico may have lasting potential benefits from a nearshoring perspective by reducing costs while also shortening lead and delivery times. The expansion of both nearshoring and re-shoring contribute to logistics demand to facilitate the efficient exchange of goods.
In the coming weeks, we’ll be releasing some more in-depth commentary centered around the Southern California Logistics market. We’ve noticed that as the economy has cooled this year, much of the media commentary around this market has been, in our estimation, a bit off the mark. You can see a preview of this piece below (under Coming Insights). As always, thank you for being part of our network!
CONSTRUCTION UPDATE
Genesis 121, Grapevine, TX
In April, BLP broke ground on Genesis 121, a planned 182,983 SF, rear load warehouse in Grapevine, Texas. Since then, site grading has been completed, utility infrastructure is nearly complete, and the building concrete slab is close to 90% complete. In the coming weeks, tilt wall panel construction will commence.
COMING INSIGHTS
Follow us on social media for more news and in-depth industry insights. Here is a preview of what’s coming this month.
The Enduring Strength of SoCal Industrial
Population outmigration. Declining container volumes at the Ports of Los Angeles and Long Beach. Shifting of imports to the East Coast. You’ve heard the reasons why the Southern California logistics market is changing. Here’s why they’re wrong.
Global Trade Patterns
US imports from Mexico now exceed imports from China. This represents a significant shift in global trade patterns, and one that bodes well for logistics demand via continued nearshoring and re-shoring.
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Bridge Logistics Properties, 1501 Quail Street, Suite 110, Newport Beach, CA 92660, United States