The Friday Report: May 7th, 2021

Quick wrap up of a few hot topic newsworthy stories in the supply chain logistics industry

Big Box Distribution Centers Booming

Industrial real estate firm CBRE evaluated the current state of the warehouse industry, specifically “big box” distribution centers, 200k square feet or larger in size.  According to CBRE, 2020 was the strongest year on record for the North American industrial and logistics market.

Companies filled vacant warehouses and absorbed space to accommodate the rapidly growing ecommerce fulfillment needs of consumers who were locked down in their homes.  Of the 22 popular markets that were analyzed, CBRE noted a 25% increase in leased or acquired big box warehouse space in the more than 11,000 DCs in those markets.

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Retrain, Reskill and Certify Manufacturing Workers to Raise Output

Using the latest learning and development technology, manufacturers hope to help ensure employees can keep up to date on tool advancements, policy changes and technology in the wake of the pandemic.  Current estimates indicate the 66% of manufacturing organizations anticipate production output will increase this year, even though workplace capacity levels hover around 50%.

The new deskless workforce will need to learn remotely while ensuring that employees remain engaged, compliant, and safe.  Manufacturing training is typically conduced in person in large spaces.  By training existing workers to develop new skills, companies can keep costs lower as well as making gains in efficiency and productivity.  Retraining eliminates the time-consuming task of recruiting interviewing and hiring new workers.

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Increased Interest in Outdoor Activities Hampered by Supply Chain Disruption

During the COVID-19 pandemic, people across the world were eager to find outdoor recreational activities to pass the time.  Boat and bicycle sales soared and are expected to go even higher.

Unfortunately, labor shortages and supply chain delays are sidelining production, backlogging orders into 2023 for some goods.  Both newbies and seasoned boat owners are taking the plunge to buy new boats.  One professional reported that he had never seen such stressed supply chains in the 18 years he had been in the boating industry.

For more information, please continue reading here.

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