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Coronavirus Could Reshape America’s Logistical System Forever

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You never know what you’re really made of until you’re tested. Coronavirus has tested every facet of the American logistical system.

With millions of Americans at home, doing their best to avoid going out by ordering online, the e-commerce infrastructure of America has been pushed to its limits.

With all that pushing, some things have bent, and few have even broken. Major e-commerce businesses and brick and mortar companies with large logistical operations are looking at how to improve for the future.

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Part of that improvement, reports Paul Page in the WSJ’s Logistics Report is the expansion of warehousing. Page says that expansion could drive up demand for industrial real estate. he writes:

Warehouse operators believe the coronavirus pandemic will end up fueling more demand for industrial real estate. Executives say the business upheaval from extensive community lockdowns will trigger fundamental changes in supply chains, the WSJ Logistics Report’s Jennifer Smith writes, bolstered by more robust e-commerce operations and more “safety stock” positioned around the country. The pandemic’s potential lasting impact on business is being hotly debated even as retailers, logistics companies and transport operators cope with volatile swings in demand. Business shutdowns have curbed activity among some operators while others are scrambling for warehouse capacity to get closer to residential customers. Shared-space specialist Flexe Inc. says it is seeing a rush of demand from retailers and direct-to-consumer brands swamped by online orders. Longer-term, the biggest gains could come in temperature-controlled warehousing as homebound consumers grow more comfortable with online grocery ordering and supermarkets adjust to meet the demand.

Even if your business hasn’t been greatly affected by coronavirus-driven logistical problems, it’s a good time to evaluate bottlenecks you can alleviate and places where you might improve on your disaster planning.

Create a list of problems you have encountered because of the coronavirus that you had never encountered before. Take some time to brainstorm solutions for each one. Then put those plans into place before inertia or distraction can prevent you from reaching your goals.

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West (RIP JB) and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.

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