Travel restrictions due to the COVID-19 pandemic have severelyimpacted the supply chain for the foreseeable future. With someestimates showing that the coronavirus will be part of life foryears to come, businesses are quickly adapting business strategy tomove closer to consumers. According to research fromCBRE, the disruption in the supply chain willcreate demand for 400 million to 500 million square feet ofindustrial space.

"It's important to think through the human element that isinvolved in handling supply chains throughout the entire process,"Kurt Strasmann, executive managing director ofCBRE's Orange County and Inland Empire operations, tellsGlobeSt.com. "Now think about social distancing and the handling ofmaterials with new safety protocols. Less people meansoperations will be less efficient initially.  I amcertain, over time the process will normalize but many dramaticchanges throughout the entire process have led to major disruptionsacross the entire supply chain process, from raw supplies tomanufacturing to transportation to warehousing to delivery of theend product to the end consumer."

Changes to the supply chain are a big upset for the ecommerceand industrial markets. In recent years, the supply chain hasbecome a well-oiled machine, but now, retailers need to find newways to get goods to consumers. "Given the disruptions and in manycases the lack of real time product available to consumers,retailers are rethinking their inventory levels," saysStrasmann. "Pre-COVID, the supply chain processwas exceptionally efficient and designed for just-in-time deliveryand availability of product to minimize inventory levels andtherefore the cost of warehousing the product. Inventory levelswere kept to a minimum, which saved enormous cost for theretailer."