Seeing What's Next - Trends Impacting Economic Development & Real Estate
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Seeing What’s Next: Trends Impacting
Economic Development & Real Estate
Thursday, April 25, 2013
2:00pm-3:30pm EST
Presenters:
Steve Grable, SIOR, Jones Lang LaSalle
Ted Abernathy, Executive Director, Southern Growth Policies Board
Hosted by:
Dean Whittaker of Whittaker Associates, Inc.
in collaboration with the Pro Learning Lab
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Thanks to Our
Professional Learning Lab Partners and Affiliates
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Steve Grable, SIOR
Global Supply Chain “Threads”
Interplay Between These Emerging Trends
and What They Signify
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More than real estate…
50.3%
21.8%
9.5% 7.8%
4.3% 2.7% 2.2% 1.2%
0%
10%
20%
30%
40%
50%
60%
Transportation Inventory Labor Customer Service Rent Admin Supplies Other
Transportation, inventory
and labor typically
account for 80% of the
operating costs
Real estate typically
accounts for less than
5%
…Understanding the total operating cost picture is critical to maximizing value
Steve Grable, SIOR
8. Copyright 2013 Whittaker Associates, Inc
Steve Grable, SIOR
Global “Threads”
• Global Near Shoring
• U.S. Manufacturing
• Panama Canal Expansion
• Emerging Global Development in BRIC Countries
• Energy Shift to Natural Gas and Biomass
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Steve Grable, SIOR
The Threads Signify…
• Job Creation
• Automation and Technical Training
• Emphasis on Speed, Flexibility, Reliability,
and Efficiency
• Expansion of Logistics Clusters
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I Have Nothing
Profound the Say
…except, many of the
things we used to know
we knew, have changed
Think
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Why is it Harder To Compete?
The economy changed
The competition changed
Locational factors changed
The U.S. workforce has changed
The talent demands changed
Life cycles have changed
Tools have changed
Customer (talent & companies) demands/expectations changed
Local leadership has changed
The pace of change and everything else changed
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Demographic Shifts
Specialization
Intensifying Competition
Corporate Integration
Technology (Speed)
The Omni Customer
Natural Resources
Urbanization
Global Interdependence
Complexity
Changing InstitutionsRadical Decentralization
Community Resilience
The Talent Bar
Growth Future
15 of the Trends Changing Our World
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Coming Over the Horizon
1. Regionalism and clusters (places and companies tied together by
geography)
2. Return-on-Investment (mania & metrics)
3. Regulation
4. Return to rural worry
5. Real workforce reform (maybe)
6. Redefine priorities
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Summary
Global Supply Chain Threads
Global Near Shoring
U.S. Manufacturing
Panama Canal Expansion
Emerging Global Development in BRIC Countries
Energy Shift to Natural Gas and Biomass
Trends Changing Our World
Urbanization
Global Interdependence
Growth Future
Complexity
Corporate Integration
Radical Decentralization
Etc.