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"The pandemic has exposed supply chain risks that were previously not identified or rejected," said Paul Danks, President of the European Regional Chapter of the Society of Industrial and Office REALTORS® and Director of Global Corporate Solutions at DeVono Cresa in London. For example, over 50% of all cargo is transported in the belly of passenger jets. When commercial air travel virtually ceased due to COVID-19 fears, the supply chain of certain items was immediately disrupted.
One proposal was a “China plus one” strategy, which means reducing risk while taking advantage of the lower labor costs in Asia. Plus-one can mean regional manufacturing centers in the US or nearshoring in Mexico. These solutions offer shorter distance to marketplaces, lower transportation costs, enterprise technology dispersed across the US, and the marketing advantage of a product “made in America”.
Three U.S. cities that may not present prospects for onshoring benefits have learned otherwise.
Miami – Raw materials and products that come from Latin America usually pass through the port of Miami, "which is busier than ever," says John Steinbauer, SIOR President of Steinbauer Associates Inc. in Miami. "From an international point of view, we purchase materials and products primarily from Latin American suppliers and have therefore coped well with the pandemic," says Steinbauer. All of these products and materials sometimes need to be stored, which is an added benefit.
