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<br />For instance, a large domestic stockpile of masks and medical supplies would have bought <br />the U.S. critical time to secure domestic production. <br />Safety issues are another concern. Some items are best produced domestically. Many <br />prescription and over-the-counter health products that were previously made in the U.S. <br />are today either made in China, or rely on Chinese factories to provide essential ingredients. <br />Not only is it risky to rely on overseas suppliers, the failure of offshore producers to <br />maintain safety and quality-control standards puts lives at risk. <br />The solution is to bring more manufacturing of life-saving products back to the U.S. For <br />basic drugs, the real expense is in research and development, and the cost of production is <br />usually low. <br /> <br />The latest research by San Francisco-based Prologis on COVID-19 and its implications for <br />logistics. The report provides insights into the third phase of the global pandemic, defined <br />as “the normal,” including quantifying the potential increase in long-term demand from <br />higher inventory levels and accelerated e-commerce adoption. <br /> <br />The report’s authors say, “We expect that lessons learned from the pandemic will add <br />demand tailwinds to logistics real estate in the “new normal.” Growth in direct-to- <br />consumer delivery volumes and rapid replenishment needs should continue to emphasize <br />the appeal of logistics real estate that is closer to end consumers.” <br /> <br />Among the findings are that accelerated e-commerce adoption and higher inventory levels <br />have the potential to generate 400 million square feet or more of additional U.S. logistics <br />real estate demand, or 150 to 200 million square feet per year for two to three years. <br /> <br />Re-tooling supply chains for increased e-fulfilment should create incremental net demand <br />of 140 to 185 million square feet in total. Inventories could increase by 5% to 10% in a <br />bid for resiliency, producing 285 to 570 million square feet of aggregate incremental <br />demand. <br /> <br />35