Is Ecommerce Really Responsible for the Industrial Boom?

Los Angeles

Ecommerce gets all the credit, but it might not be solely responsible for the industrial boom this cycle, according to experts at RealShare Southern California. On the Industrial Outlook panel—moderated by Jenny Redlin, a principal at Partner Engineering and Science with speakers Brandon Birtcher, CEO of Birtcher Development LLC; Ryan Grove, director of real estate development at Ryan Companies US; and Tim O’Rourke, managing director at JLL—said that changes to the supply chain, which requires that goods be closer to the consumer, is largely responsible for the industrial activity this cycle.

Birtcher said that these changes to the supply chain include changes in the trucking industry and the shortage of drivers, the need for new bridging in railroads and ports that can accommodate mega ships. While he says that ecommerce is one driver, he says that these changes to the supply chain have created a need for goods to be closer to consumers today. This means, for example, that a market like Phoenix can’t service Southern California anymore. “We have a need to put goods close to people,” he said on the panel. “It is the supply chain that really drove this activity.”