We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Dispatches
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » U.S. supply chains adopt “China Plus One” strategy to diversify trade patterns

U.S. supply chains adopt “China Plus One” strategy to diversify trade patterns

CBRE study shows tariffs and pandemic have increased imports and exports with Taiwan and Vietnam.

CBRE global supply chains
July 9, 2020
DC Velocity Staff
No Comments

U.S. supply chains are adopting a “China Plus One” strategy as they shift away from an over-reliance on trading partners in that single country and strive to include more Asian and European markets in response to the pressure of recent trade wars and the coronavirus pandemic, according to an analysis by commercial real estate giant CBRE.

The trend is borne out by statistics showing that China-to-U.S. exports decreased 12.7% in 2019, and total trade between the countries was down $100 billion year-over-year, CBRE said. The main countries benefiting from that shift are Taiwan and Vietnam, which saw their total trade with the U.S. increase in 2019 by $18.7 billion and $9.1 billion, respectively, CBRE found. Smaller increases are also going to Belgium, the Netherlands, and France, all within the European Union.

Despite those moves, China will remain one of the largest trade partners for the U.S. “While we will not see a widespread exodus from China, we will see a shift in trade patterns that will trigger broader effects on U.S. supply chains, including increased industrial distribution development and increased domestic manufacturing,” John Morris, CBRE’s executive managing eirector Americas Industrial & Logistics, said in a release.

The report echoes a similar finding from the industry analyst firm Gartner, which said in June that a survey showed one third of companies with global supply chains have moved their sourcing and manufacturing activities out of China or plan to do so in the next two to three years. Likewise, that survey cited the three reasons for the change as Brexit, the pandemic, and rising trade tariffs. The Gartner survey also found that a top alternative location was Vietnam, but said trade was rising with India and Mexico too.

According to CBRE, the shifting supply chain patterns stand to make ripples domestically as well, sparking rising industrial demand in the Southeast and Gulf regions of the U.S. Those areas will be boosted by growth in trade with Europe and parts of Asia that access the U.S. through the Suez Canal, thanks to the Southeast’s 85 million person population, which is the largest in the U.S. and is projected to grow 4.8% in the next five years.

Specifically, CBRE predicts fast growth at the ports of Houston, Charleston, Virginia, and Savannah. “West coast port fundamentals will remain sound and see growth in the coming years, but the top markets for growth will likely shift to the Southeast,” James Breeze, CBRE’s global head of Industrial and Logistics research, said in the release. “As trade patterns change, this region offers significant logistics capacity, available land for industrial and manufacturing development, lower asking rents, and access to the largest population concentration in the country.”

Likewise, domestic manufacturing is likely to increase, as more parts are sourced from North America in an effort by retailers and manufacturers to become more flexible and nimble by locating more of their operations closer to their consumer base. That trend will also be pushed by the recent United States-Mexico-Canada Agreement (USMCA), which is expected to drive more reshoring and increased industrial demand, especially in the automotive industry, CBRE said.

Supply Chain Services Global Logistics Coronavirus Coverage
KEYWORDS CBRE Gartner, Inc.
  • Related Articles

    Survey: Covid-19 won’t curtail holiday shopping spend

    Qatar Airways Cargo donates freight shipments to ease pandemic challenges

    Report: Changing trade patterns a boon to U.S. industrial real estate

Recent Articles by DC Velocity Staff

Need an item? Hail a store

Cobot sales forecast for swift rebound from “arid” slump in 2020

ATA cheers court ruling upholding looser hours of service caps

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • Cold chain giant Lineage Logistics buys its own rail operator

  • For container lines and ports, what a difference a year makes

  • Outlook 2021: What’s in store for logistics supply chain?

  • Capacity challenges will continue in 2021

  • Cushman & Wakefield Brokers Sale of 170 Acres plus Lease for 1MSF Build-to-Suit for Home Improvement Retailer in Commerce City, CO.

Now Playing on DCV-TV

2mw 01 11 21 thumb

Ocean Sector Shaping the Next Shipageddon

DCV-TV 4: Viewer Contributed
If you're a shipper, it's never good when a rep for an ocean carrier tells you, "You better sit down before you read this." We've been seeing astoundingly high increases in the ocean sector and they seem to have staying power. While the ocean carriers used blank sailings last year to tip the balance of supply and...

FEATURED WHITE PAPERS

  • Proven Benefits: A Compendium of Slotting Optimization Success Snapshots

  • Bridging Information Gaps in Dock and Yard Operations

  • How Intelligent Sensor Solutions Turn Data Into Action

  • Order picking Solutions: Understanding Your Options

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing