60% of logistics companies are planning major investments this year. In retail and production only one in three

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One of the main challenges of the pandemic is economic uncertainty. Therefore, logistics, retail and production companies are cautious about spending significant amounts on investments. They are planned by 46% of companies, while in the previous edition of the survey it was 74% of companies – according to the CBRE’s “Confidence Index” report. Much greater optimism is visible in the logistics sector. Already 60% of companies want to invest, among others, in the development of supply chains. In trade and production, despite the significant growth of the e-commerce sector, only one in three companies declares such a plan.

– The decisions of entrepreneurs are marked by caution. Hence, their reserved declarations concerning the increase of investment outlays on e.g. logistics or supply chains. However, this is not surprising. At least a few more months of this year will be marked by uncertainty. For the time being, companies prefer to withhold decisions concerning expansion, investments or even increasing the level of employment. However, entrepreneurs are aware of the changes brought about by the pandemic and of the fact that in order to keep up with them, it is necessary to plan investments in the future. First of all, companies will focus on the development of i.e. logistics, supply chain, but also on modern technologies or recently popular sustainable development solutions – says Agata Czarnecka, director in the research and analyses department at CBRE.

Lower investment outlays

CBRE’s “Confidence Index” report shows that fewer entrepreneurs from the logistics, manufacturing and trade sectors are planning significant investments this year compared to the previous edition of the survey. 46% of respondents expect capital expenditures in this area, while in the previous report 74% chose this answer. 54% of the respondents do not expect significant investment outlays, which is a consequence of the uncertain market situation, that will haunt entrepreneurs for at least several more months, the report authors forecast.

Logistics operators are more optimistic about investment outlays. Already 60% of them are likely to invest in new solutions, while only 32% of producers and retailers are willing to do so.

Growing awareness of irreversible post-pandemic changes

Entrepreneurs in the logistics, retail and manufacturing sectors are aware that they need to adapt their businesses to the changes brought about by the pandemic. The three most frequently selected ways to adapt to the post-coronavirus reality are: greater use of and investment in technology (52%), diversifying the customer base to reduce the risk profile (52%) and responding to changes in international supply chains, or near-shoring (41%).

– Responses from logistics operators and manufacturers and retailers differed only slightly. This shows how much awareness there is of the changes brought about by the pandemic in different sectors. Some of them are irreversible and entrepreneurs know that they have to incur costs to adapt to them – concludes Agata Czarnecka.

Source: CBRE