Digital supply chain management software is becoming a key factor for companies to enhance efficiency and meet customer demands. With real-time visualization and advanced analytics, systems like WMS and TMS help businesses optimize operations and meet consumer expectations. Even long-standing traditional systems need gradual upgrades to integrate new technological advancements.
With the advancement of digitalization, modern Supply Chain Management (SCM) software offers businesses real-time visibility and efficient logistics support. By integrating warehouse management, transportation management, and artificial intelligence, companies can better forecast demand and enhance customer satisfaction, gaining a competitive edge in a fiercely contested market.
The U.S. will implement import tariffs on August 1, facing urgent challenges and uncertainties in the transportation sector. Despite strong economic growth data, anxiety over policy changes complicates future impact assessments. The tariffs may lead to reduced consumer spending and increased unemployment rates. Core inflation is expected to rise to 3.6% by 2025.
The Q2 report on the U.S. industrial real estate market shows stable net absorption, driven by the resilience of the logistics sector which boosts demand for new warehouses. Despite challenges, companies are optimizing supply chain management through modernized facilities. Looking ahead, the stable market outlook presents opportunities for businesses.
According to the latest report, the net absorption of the U.S. industrial real estate market reached 29.9 million square feet in the second quarter, indicating an outperforming market, particularly driven by the continued demand for newly constructed logistics facilities, showcasing the industry's resilience and stability.
In the second quarter of 2023, the U.S. industrial real estate market demonstrated stable resilience with a net absorption of approximately 29.9 million square feet. The demand growth was driven by new logistics products, despite rising vacancy rates and consolidation pressures in some regions. By 2025, new supply is expected to exceed absorption, while absorption is projected to surpass supply by 2027.
According to a report by Cushman & Wakefield, the U.S. industrial real estate sector demonstrated stability in Q2 2023, with net absorption remaining consistent with Q1 levels and an increase in demand for logistics products. However, the western markets are facing challenges, leading to gradual changes in overall rents and construction activity.
The Cushman & Wakefield report indicates that in the second quarter of 2023, the U.S. industrial real estate market remained stable, driven by logistics resilience. There was strong demand for new warehousing facilities; however, the western regions faced negative absorption pressures. It is expected that in the coming years, new supply will continue to exceed absorption until 2027, when the market is forecasted to reverse.
The Logistics Management Index (LMI) reached 60.7 in June, marking two consecutive months of growth and indicating strong market vitality in the logistics sector. Inventory levels have increased significantly, while transportation capacity and price fluctuations have also entered a period of tension. There remains uncertainty regarding the future direction of market demand.
In June, the Logistics Manager Index (LMI) significantly rose to 60.7, marking a strong recovery in the logistics sector. The report highlights improvements in inventory levels and changes in transportation and warehousing capacities. However, it also warns of uncertainties in market demand for the second half of the year, which could impact future economic and logistics trends.
