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Colliers’ quarterly State of the Industry report highlights the latest in freight pricing trends, port capacities, labor dynamics, current events, supply chain best practices.
Here are the Top 5 trends:
- Global trade tariffs go into effect
- Global import tariffs initiated by the U.S. Administration went into effect on Aug. 7.
- Impacted countries include, but are not limited to, Canada, China, India, Mexico, the European Union, Vietnam, Taiwan, Japan, South Korea, and the United Kingdom.
- As of Aug. 7, the latest agreed-upon range of tariff rates imposed upon these countries was 10-35%.
- Tariff reclassification may be used as a cost avoidance strategy
- Regular monitoring of the U.S. Tariff Harmonization Schedule is an important strategy for companies sourcing products from multiple vendors or geographies for the purposes of tariff related cost avoidance.
- Industrial vacancy climbs to a 12-year high
- The average U.S. industrial vacancy rate reached 7.3% in the second quarter, the highest level since 2013, although rates in most regions and markets are nearing their cyclical peak.
- Industrial space listed for sublease exceeded 200 million square feet, which is up 26% year-over-year.
- Observable cooling in the labor market
- The latest report from the Bureau of Labor Statistics showed only 73,000 new jobs added in July and a combined downward revision of 258,000 jobs for May and June, bringing average monthly job gains for May through July to only 35,000.
- Union Pacific and Norfolk Southern announce merger
- If approved by regulators, the merger would create a single company controlling coast-to-coast rail shipments for the first time in U.S. history.
- Some labor unions and trade groups oppose the merger, saying that it will result in job dislocation and disproportionate pricing power for the combined company.
