Despite promises of a “reshoring boom”, the survey that included 380 business and supply chain professionals revealed that high costs are steering companies toward alternative low-tariff countries and not back to the U.S.
Driven by ongoing population growth, low costs, strategic infrastructure access, and a favorable business operation environment, industrial vacancy rates remain below pre-pandemic averages, and rental rates continue to rise in key markets in the Southeast U.S.
Trade tariffs may lead to inflation and recession, as seen in the past, with profound effects on the construction sector, impacting both costs and demand. And immigration policies that induce fear among workers could worsen the ongoing labor shortages in construction, making it harder to recruit and retain skilled labor.
According to CBRE, should the trade disputes escalate it will likely result in less demand for industrial space as US imports require more space. CLICK ON THE HEADLINE FOR MORE