Supply Chain News Roundup: The Pillars of a Sustainability Plan

Three pillars can aid transportation companies in their quest for decarbonization and sustainability practices: minimizing miles, implementing efficient equipment and targeted training.

When it comes to technology, none of them have a high price tag, said Travis Vedral, senior director of transportation strategy at Univar Solutions, during a recent Sustainability in Logistics event by Chicago-based Redwood Logistics.

“For an effective sustainability plan to come to fruition, you have to start with an effective team centered around research, collaboration and education,” Vedral said in a press release.

According to research, tech investment is seen as a barrier to entry, particularly in the transportation industry, he said. These pillars don’t require new technology, but they do entail a willingness to invest in internal assessment and research, he said.

Nate Greensphan, Redwood’s director of product, added that the evolution of decarbonization and sustainability efforts is “intertwined with Scope 3 (emissions) regulations, creating new challenges and opportunities.”

While tech investment isn’t necessary when embarking on a sustainability journey, “it can certainly help to kickstart the process and is essential for companies that have more evolved plans,” he said in the press release.

Industrial Vacancy Rates Cool

The pace of vacancy rates for industrial properties is slowing — and in all four regions of the country.

According to a third-quarter status report from real estate firm Colliers, vacancy is still rising, but at a slower pace. U.S. Industrial Market Statistics 24Q3 found that the rate increased 156 basis points to 6.6 percent, which was the smallest quarterly increase since it began to rise in late 2022.

The West region recorded 6.6-percent vacancy, an increase of 256 basis points year over year; the South, 7.8-percent vacancy, a year-over-year increase of 179 basis points; the Northeast, 6.5 percent, up 121 basis points; and the Midwest, 5.3 percent, 57 basis points.

The balance between supply and demand is coming back, according to the report. “Nineteen of the 77 markets tracked recorded positive net absorption greater than 1 million square feet between July and September, while 26 markets saw net absorption turn negative during the quarter. A recent uptick in new leasing volume will result in a bump in demand during the fourth quarter as tenants take occupancy,” the report states.

Additionally, industrial development is returning to pre-coronavirus pandemic levels, with 2025 projected to be even closer to those levels for development under construction. The top markets for square feet under construction and year-over-year change, according to the report, are, in descending order, Phoenix, greater Los Angeles, Atlanta, Dallas-Fort Worth and Austin, Texas.

While warehouse/distribution rent growth peaked in 2023, during the third quarter, it averaged US$10.26 per square foot, an increase of 67 percent since early 2020, the report said.

The Holidays Are Coming

Halloween is two days away, and Christmas tree sales are already underway. And as with many goods in the supply chain, cost will be a factor in the decision to buy.

A national survey by National Tree Company, an importer and wholesaler of artificial Christmas trees and other holiday decorations, found that a third (35 percent) of consumers intend to buy a new artificial tree this year. Nearly a third have a budget between $101 and $200 ­— also the most popular price range last year. However, 21 percent said they would spend more — between $201 and $500.

Brick-and-mortar stores are expected to eclipse e-commerce for sales, with discount retailers being popular.

“The fact that more than one third of the survey’s respondents said they planned on buying a new artificial tree suggests a robust market this season, but enthusiasm should be tempered as budgets and inflation are still wearing on consumers,” Chris Butler, CEO of National Tree Company, said in a press release.

(Photo credit: Getty Images/Ezypix)