Onshoring is the new buzzword for international trade following the disruptions caused by the Covid pandemic. But is onshoring going to be the dynamic stimulus for warehouse demand that some industrial developers dream of?
As U.S. and foreign companies move more manufacturing from Asia to America, a healthy dose of caution is required, especially in port areas, a new study by CBRE Econometric Advisors suggests. It is, says CBRE, "a narrative far more nuanced and time-dependent than commonly believed…The benefits of onshoring could be overstated, or at least misplaced in charting the complexities of trade flows and their effects on warehouse demand."
Using a sophisticated statistical method, CBRE analyzed how sudden changes or shocks in gross exports and imports influence the demand for warehouse space. The results revealed "a somewhat counterintuitive cyclical pattern."
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