$2T in Goods Flow Through Prologis Warehouse Facilities
That’s an increase of 69% compared to 2017, according to the logistics real estate company’s "Future Flow of Goods" economic impact report.
A new report estimates that an economic value of $2.2 trillion in goods flow through Prologis facilities worldwide.
The “Future Flow of Goods” study from independent advisory firm Oxford Economics commissioned by the logistics real estate company comes at a time when some consumers are relying more heavily on e-commerce amid the COVID-19 pandemic.
“This study shows just how critical logistics real estate is to the vitality of the global economy,” said Prologis chairman and CEO Hamid R. Moghadam in a statement. “Every day, Prologis sees many of the goods that make modern life possible flow through our distribution centers, which in turn underscores the interconnected nature of global trade.”
The research, based on 2019 data, also found that the $2.2 trillion in throughput moving through Prologis warehouse is 69% uptick compared to 2017. It also represents 3.5% of the gross domestic product of the 19 countries in which Prologis operates. In 2017, the company’s throughput represented just 2.4% of GDP in those countries. Since then, the company has increased its portfolio from 684 million square feet to nearly 1 billion square feet.
The largest GDP impact is felt in the United States, at $153 billion, followed by the United Kingdom at $8 billion, and then France and Germany, each with $7 billion, according to the data.
Globally, the flow of goods through Prologis buildings represents 2.5% of global GDP, equivalent to 4.4% of global household consumption, which has more than doubled from 1.7% in the past several years, the study shows. In the U.S., Prologis throughput is around 30% of goods consumption and 11% in Europe, according to the report.
The report also estimates that the global direct employment in Prologis warehouses is around 853,700, marking a 58% increase from 2017. However, the calculations were made prior to the coronavirus pandemic, but given the fluidity of the situation and “strong staffing needs from large warehouse users” the Oxford Economics decided not to adjust the estimate.
In the U.S., the activities in Prologis’ warehouses supported 1.3 million jobs. The company’s commercial real estate also supports 334,000 jobs in China and 100,000 in the U.K.