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Supply
Chain by the Numbers |
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- Oct. 10, 2024
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rash |
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DC Contruction Crashes in Q3; Dock Workers get Big Raise but Automation Issue Looms; California to Enforce DC CO2 Rules; Lots of Supply Chain Reorgs |
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43% |
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That was the big decline in the long red hot US warehouse construction levels in the third quarter versus 2023. The drop took new construction fell to 309 million square feet, representing the steepest quarterly drop since 2008.That according to real-estate firm Cushman & Wakefield in a new report this week. “Developers are paring back their expansion plans as companies have held off on making leasing decisions and higher interest rates have pushed up borrowing costs,” the Wall Street Journal reported on the data.“You have softer market conditions. It’s taking longer for some of these projects, when they deliver, to lease up,” said Jason Price, head of logistics and industrial research at Cushman. “There’s not this rush to get something built right away.” |
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That is the total wage hike over six years that was agreed to late last week between the International Longshoremen’s Association (ILA) union and the US Maritime Alliance (USMX), which represents East and Gulf Coast port operators. That wage hike was enough to end a two-day strike. But the labor issue is hardly over, with the current contract extended until January 15th to resolve other issues. At the top of that list: port automation. ILA leaders have vowed to fight any allowance for automation in a new contract, while port interests say automation is essential to their global competitiveness. |
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100,000 |
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| That’s the threshold level in square footage size for warehouses in Southern California that will now be subject to new CO2 emissions rules. That after the U.S. Environmental Protection Agency’s recent approval of a California law forcing warehouses to reduce emissions or pay mitigation fees tied to truck deliveries. Effective Oct. 11, EPA has okayed a Southern California air-quality mandate that forces warehouse owners and operators to make changes and invest in actions to lower greenhouse gas emissions associated with their businesses or pay fees to the state. It also includes state reporting requirements. Coming to a state near you? |
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That amazingly is the percent of companies surveyed by the analysts at Gartner which said they are currently reorganizing, their supply chain organization, or plan to in the near future. Seems like a big number to us. That from a blog post last week by Gartner analyst Alan O’Keefe. What’s more, O’Keefe said, companies too often don’t get the results they expected from the reorgs. “We urge CSCOs to make three outcomes central to their new organization design,” O’Keefe says. Those three are improved balance, strength, and speed. O’Keefe added that “when top athletes need to push beyond performance plateaus, they radically rethink how they develop their bodies via their training and preparation routines.” He adds that supply chain leaders seeking to revitalize their organizations need to take a similar approach.
