Recent findings from a CBRE market study presented during the International Logistics Exhibition in Barcelona reveal that about two in three operators in logistics and retail sectors anticipate higher turnover in the near term. The survey, which drew on responses from fifty operators collected in the spring, highlights a period of resilience for firms facing rising prices and tighter storage space. While sixty-eight percent expect increased sales and only sixteen percent foresee declines, around forty percent of logistics operators expect stronger profits next year, compared with twenty percent among retailers.
The report, titled Confidence index in the Spanish logistics sector, notes continued industry optimism despite current conditions. Respondents on average scored fifty-four on the confidence index, a touch below the 2021 level of fifty-nine and well above the 2020 mark of thirty-five. Inflation concerns and geopolitical tensions weigh on the outlook, with forty-three percent concerned about rising prices and geopolitical risk. Logistics operators show similar worry about both inflation and instability, while fuel costs and shipping expenses are the top worries for retailers, cited by twenty-one percent. About one in three respondents expect international supply chains to be restructured due to the geopolitical environment, though six percent believe the instability will not affect their companies. Covid concerns have largely faded from the agenda in this sector.
Alberto Larrazabal, the national director of CBRE Industrial and Logistics in Spain, interprets the data as evidence that the Spanish logistics market recovered rapidly from the pandemic, aided by Spain’s strategic position relative to Europe and South America and by inbound foreign investment.
Looking ahead to next year’s business conditions, about thirty percent feel optimistic and view the environment positively, compared with twenty percent in the initial 2020 edition and forty-nine percent in the 2021 edition. Logistics operators appear slightly more upbeat than retailers about the near future. Seventy-two percent of interviewees expect to invest in logistics and the supply chain next year, a five-point rise from the previous survey. In this edition, logistics operators and retailers share similar investment intentions, whereas last year operators showed lower enthusiasm with sixty-five percent planning investments versus sixty-eight percent of retailers.
Regarding employment, sixty-two percent expect workforce growth between two and ten percent, twenty-two percent foresee no change, and sixteen percent anticipate reductions, down from higher proportions seen earlier. The demand for logistics warehouses is notably strong, with sixty percent predicting increased demand in the next twelve months, up from forty-eight percent the prior year. As in prior years, logistics operators remain far more optimistic than retailers about space expansion, with eighty percent expecting growth in demand for logistics space, compared with seventy-four percent last year and forty-seven percent in 2020. Only twenty-three percent of retailers anticipate expanding new facilities.
When considering future real estate activity, respondents cite three main concerns: facility obsolescence, limited current supply, and rising construction costs. They also expect significant disruption from technology, with about half believing that artificial intelligence, the Internet of Things, and automated vehicles will have the greatest impact on warehouse operations over the next three years. Robotic process automation, autonomous mobile robots, and automated storage and retrieval systems follow closely behind in anticipated influence.