Nordics Real Estate Blog | CBRE

The Future of Nordic logistics beyond the Covid-19

Written by Dragana Marina & Daniel Marthendal | 02-Jun-2020 13:43:04

The logistics industry globally has experienced massive development during recent years. Although logistics has been widely considered with an emphasis on transportation, the very concept is quite comprehensive and includes services such as transportation, customs clearance, storage, handling, packaging, inventory management and more. The distance between the point of procurement and consumption has made logistics industry a very important competitive differentiator.

Supply chain reliability is strongly associated with logistics performance. In a global environment, reliability is actually much more important than speed. Therefore, demand for logistics is only expected to increase in the future, in line with manufacturers reconsidering their supply chain strategies and potentially moving production facilities closer to consumers. Besides, short term surge in demand coming from online grocery stores is also believed to continue, in line with customers changing their purchasing habits.

We believe that the perception of the Nordic Region as one of the logistics hot spots will only increase in the future. One of the main reasons behind this is substantial potential for development across the region, from old and obsolete stock that can be demolished to make space for new construction to vast undeveloped areas that can be activated for development provided the zoning is in place. This will require the governmental/municipal recognition of the importance of logistics for the future economic growth and competitiveness of one country in a global setting.