Publications

- October 2012: Vol. 24 No. 9

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Warehouse Wins Retail Wars: Internet Retailing and Time-to-Market Considerations Have Changed the Balance of Power

by Marc Louargand

Changing logistics practices and new retail trends are combining to make warehouse/distribution buildings an attractive investment.

Rising fuel costs and increasing labor costs in China have caused some manufacturers to rethink their product sourcing, and some have begun to “reshore” their production to North America. A recent MIT study found 14 percent of 106 manufacturers surveyed had definite plans to reshore, while 33 percent were considering it. Boston Consulting Group conducted a survey of similar size and found 37 percent of companies were actively considering reshoring.

Estimating the carbon footprint of goods or the total cost of ownership has also led some to see local production as a viable alternative. Master Lock Co. of Milwaukee brought production back to the United States from China and found productivity to be six times higher after the move. Intex Technologies, a manufacturer of molded foam products, found that it could reduce a custo

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