Megatrends and trends are constantly evolving and require new strategies, including in the logistics and light industrial sectors, where a reorientation of global supply chains, sustainable mobility, connectivity and progressive urbanisation continue to gain in importance.
“Progress is impossible without change, and those who cannot change their minds cannot change anything.” As George Bernard Shaw rightly pointed out, it is essential to continually rethink and develop strategies if progress and growth are to be possible. In the past, we have looked more closely at trends such as Industry 4.0, urban logistics, the growth of e-commerce and deglobalisation. These trends are still important aspects within the sector and will continue to shape and influence the market. By contrast, other megatrends are evolving and therefore present opportunities and challenges in equal measure.
Supply chains, light industrial real estate and sustainable mobility
An increasingly important aspect in the logistics and light industrial sector relates less to deglobalisation, rather more to the changing conditions and effects of globalisation. This is particularly true with regard to the risks and the current realignment of global supply chains when it comes to bringing goods closer to consumers. While nearshoring and reshoring remain relevant, they no longer capture the full scope of this transformation. As the world’s population expands and the exchange of ideas, talents and products intensifies, logistics remains a key factor in supporting these shifts and advancing human progress.
Light industrial properties are characterised by their flexibility. They can often be cost-effectively adapted to the specific needs of tenants, for example as small production facilities, assembly work or storage. This flexibility makes them attractive to a wide range of businesses, especially in times of uncertain markets, where companies need to keep their operating costs low while responding to changing business demands.
An ongoing trend is the transition to sustainable mobility. The gradual replacement of diesel and petrol engines is paving the way for a post-fossil era and requires a more sustainable approach in the logistics sector. With cities increasingly moving towards car-free zones, the demand for eco-friendly last-mile delivery solutions is rising.
Connectivity, population growth and increasing urbanisation
The integration of these elements necessitates broad-based connectivity. Increased levels of interconnectivity or the internet of things are driving forces in this respect. It encompasses the linking of diverse entities, including knowledge and information, people and lifestyles, cultures and nations, production processes and machines. In this context, logistics and light manufacturing assume a pivotal role.
The population in major cities continues to grow. As a result, the demands of urbanisation are increasing. This goes hand in hand with the desire for urban neighbourhoods. It is important that logistics provides solutions for the realisation of 15-minute cities, superblocks and vertical villages.
While many of these trends may already be familiar, they are constantly evolving, just as we are. The environment, markets and buildings are in a state of change. At Swiss Life Asset Managers, we continuously integrate the latest research findings into our investment strategies. By developing future-ready properties and funds, we position ourselves to capitalise on both existing and emerging megatrends.
