You are visiting a page on our global site but we noticed that you are in United States.
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

The Duality of Volume Shifts in Industrial & Manufacturing

3/19/2020
Critical goods production is ramping up, meanwhile supply chain interruptions spur need for temporary warehouse space.

Critical Goods Covid-19 update (image)

The impact of the COVID-19 pandemic on industrial users presents unprecedented challenges including supply chain interruptions, transit bottlenecks and increased demand. As supply chain disruptors leave product stranded, and as demand shifts persist, companies need product storage, spurring the need for temporary warehouse space. At the same time, businesses that manufacture critical goods are ramping up throughput to meet increased demand for medical supplies and groceries.

On Wednesday, March 18, President Trump invoked the Defense Production Act (DPA) which allows the government to require businesses to prioritize contracts that are necessary for public safety or defense. It includes the ability to control the distribution of materials and goods, requisition property, force increased production of critical goods and control the provision of raw materials.

Below are observations on the potential impacts of COVID-19 and the DPA on the industrial and manufacturing sectors:

Medical Supply Industry: To prepare for the increase in medical needs, companies that manufacture medical devices and supplies (surgical masks, ventilators, hospital beds, etc.) will look to increase manufacturing capacity.

Consumer Packaged Goods: There is an overall increased need for packaged food, household cleaning products and self-care items. Consumer packaged goods producers will attempt  to increase throughput to meet the new and record-level demand.

Cold Storage: Increased demand for cold storage space is likely, due to the shortage in refrigerated shipping containers and an increased need for food and grocery items. Whereas grocery stores are stocking up and storing product locally due to delayed supply chains with supply gaps.

Gasoline: Gasoline will likely go into surplus and require more storage than usual in the U.S., particularly with reduced commuting.

Manufacturing Production Delays: Manufacturing that involves assembly of parts that are produced in different geographies will likely need additional temporary storage due to out-of-sync productionproduction that has slowed or paused for components necessary to complete the entire product. Manufacturers may also need to adjust throughput of certain components so the production of other items can catch up.

Restaurant Supply Distributors: As restaurants close for dine-in customers, restaurant supply distributors will need to store excess product and evaluate incoming orders from suppliers.

The global pandemic is without a doubt affecting the industrial market as we know it. Cushman & Wakefield will continuously monitor the virus and its impact and provide frequent updates.

Related Insights

occupier response (image)
Article • Economy

COVID-19: Occupier Response

The circumstances are constantly evolving, requiring nimble action on the part of companies and their leadership. Here are a few ways that office occupiers are responding to the challenges posed by the current health situation.
David Smith • 3/17/2020
Time to reassess (image)
Article • Economy

Coronavirus Update: Time to Reassess

Although health officials overwhelmingly agree that these containment measures are necessary, the economic costs of the coronavirus are rising quickly. In this update, we highlight some of the latest developments that are most germane to property.
Kevin Thorpe • 3/16/2020
recovery china buildings (image)
Research • Office

Recovery Guidelines for Buildings

With lessons learned across 100 million square meters under management, the Vanke Service | Cushman & Wakefield joint venture has collaborated with Lujiazui Financial City and RICS to produce an extensive set of guidelines to help landlords and tenants in China and around the world get back to the workplace.
Edward Law • 6/17/2020
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Privacy & Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS