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Growing U.S. exports will drive Inland Ports

Healthy export volumes abroad are prompting many U.S. manufacturers to re-evaluate their existing supply chains.

Developers finding solutions that address export demand are yielding opportunities to capture traditional warehouse/logistics users.

Exports have accounted for half of U.S. economic growth since the Great Recession’s end. And yet when most readers encounter the words “logistics” and “industrial real estate”, images of stacked import containers and behemoth distribution centers come to mind. This is hardly surprising when considering the perception of the U.S shifting from a goods-producing to a goods-consuming-nation. Though, U.S. manufacturing is alive and well.

Although the number of U.S. manufacturing jobs have been steadily declining over the past 40 years, output per employee is sharply up. And, by export volumes, the numbers are healthy. With increased demand for U.S. goods abroad come questions of efficiency: Are suppliers maximizing their supply-chain-networks? Can time-to-market deliverables be expedited? How can shipping expenses be minimized?

This paper cites U.S. export trends to springboard into a discussion on transportation costs, current logistics-infrastructure and its import-centric mentality, and the rise of inland port developments. Additionally, a study highlighting one of the U.S.’ fastest growing export industries will be provided to offer an example of how real estate plays a vital role in funneling goods to high demand markets.

Logistics provides the roads to the world’s economy. Limiting congestion; choosing the best, most cost-effective route; and making an informed decision as it relates to site selection are crucial to preserving and growing your business in today’s fiercely competitive landscape.

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