$45 Trillion in Goods Could Crisscross Planet by 2021! by Cushman & Wakefield
A new Cushman & Wakefield White Paper, The Changing World of Trade, estimates that if global trade continues to grow by an average of 9.5 percent per year for the next 10 years, about $2.7 trillion in new goods will be added per year to the global pipeline. That means that by 2021 an astounding $45 trillion in goods could be crisscrossing our planet every year. That compares to $6.5 trillion in 2001.
Technology and demographics are dramatically altering global labor and consumer landscapes, which is driving change across commercial estate sectors, including warehouse and distribution, manufacturing and retail. Rising wages in some Asian countries, increasing transportation costs and advanced automation have some manufacturers rethinking their business models and moving all or parts of their operations back to North America or Eastern Europe or emerging new markets.
Owners, occupiers and investors need to respond to unprecedented trends in technology, demographics and infrastructure that are transforming global supply chains, according to the White Paper.
According to Cushman & Wakefield, the U.S. is facing a potential shortage of class A industrial space, spurring more redevelopment and retrofitting of existing facilities. In Europe, activity has been mixed, giving rise to the re-emergence of build-to-suit developments. Brazil and China have become dominant players on the global scene due to strong economic growth coupled with rising incomes. However, China and the growing integration of intra-Asia trade channels supported by a budding middle class point towards more demand for industrial space across most regional hubs such as in Vietnam and the Philippines.
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