The previous "Ripple Effect" posts looked first at retail and then at a few industries that supply retail. The series now considers some other industries.
Amazon has led construction and occupancy for new inventory centers and distribution opening more than 100 facilities across warehousing, distribution centers, fulfillment, transit, and large (bulky) handling locations. Parallel efforts by suppliers and competitors added warehousing for onshore inventory and buffer stocks. The additional inventory was a natural and traditional method to counter logistics problems from ship delays, port delays, and inland freight distribution delays. Untold billions of dollars and item counts are stashed in warehouses waiting for “just in time” delivery of manufactured production from East Asian suppliers to North American consumption. Market participants added inventory buffers to the popularly termed supply chain” linking manufacturers to consumers to smooth out problems.
The demands for 3PL (in transit) inventory space and their trucking facilities has placed a high demand on qualified labor for drivers and post-port handling. Energy and bulk food commodity shipping has placed scheduling for intermodal and rail shipments at a premium. Commercial real-estate construction has boomed in response to historically low interest rates and high demands. Demand has taken up warehouse space even near second-tier ports and some areas (Arizona) where trans-shipping transfers are desirable with low real-property costs. The demands for new and rehab construction have created pressure for construction materials, construction equipment, and crews, and materials to furnish warehouses (steel racks, robots, controls, etc). The benefits of the resulting construction boom have supported commercial real estate construction and uptake.
Read the other posts in the series at www.ekalore.com/the-ripple-effect or read our whole blog at www.ekalore.com/blog-1
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