Investor Presentaiton
Global Drivers: Customers Worry About Supply Chain
Ongoing shift in global value chains
TOP 10 PROLOGIS CUSTOMERS VOICE "SUPPLY CHAIN CHALLENGES❞1
# of times top 10 customers mentioned "supply chain challenges" in earning calls
50
DISTRIBUTION OF GLOBAL SUPPLY CHAIN ESTIMATED COSTS
%
40
30
20
10
0
2010 11
12
13
14 15
16
17
18
19
20
21
Transportation
55%
FIBRA
PROLOGIS
Labor
Inventory
Rent
20
20
20
ம
9 in 10 executives surveyed agree that their supply bases are too concentrated, according to an Interos survey of global goods' companies.
Out of 1,500 global companies, 64% plan to modify their supply chain footprints.
Executives plan to reshore an average of 51% of existing contracts, mostly from Asia.
Rents are much less important for supply chain costs than transportation, labor. This implies significant upside for rents in markets with low
transport & labor costs, such as Mexico.
Sources: Interos, Prologis Research.
8View entire presentation