Pandemic Disrupts Supply Chain and Creates More Industrial Demand

Travel restrictions due to the COVID-19 pandemic have severely impacted the supply chain for the foreseeable future. With some estimates showing that the coronavirus will be part of life for years to come, businesses are quickly adapting business strategy to move closer to consumers. According to research from CBRE, the disruption in the supply chain will create demand for 400 million to 500 million square feet of industrial space.

“It’s important to think through the human element that is involved in handling supply chains throughout the entire process,” Kurt Strasmann, executive managing director of CBRE’s Orange County and Inland Empire operations, tells GlobeSt.com. “Now think about social distancing and the handling of materials with new safety protocols. Less people means operations will be less efficient initially.  I am certain, over time the process will normalize but many dramatic changes throughout the entire process have led to major disruptions across the entire supply chain process, from raw supplies to manufacturing to transportation to warehousing to delivery of the end product to the end consumer.”