JLL, a business real estate consultancy, publishes a report entitled “Relocation to EMEA: what potential? in which she notes that European companies are relocating part of their production to Romania, Turkey and Morocco, instead of Ukraine and Asia. Unsurprisingly, the war in Ukraine and the health crisis are the main reasons for this. Adding Brexit, the logistics sector has been experiencing more frequent and stronger disruptions in recent years. “Two years of global pandemic and the Russian-Ukrainian war have helped to change things, after highlighting the lack of resilience of supply chains. Companies have realized that diversification strategies are key to optimizing inventory levels in European markets. We are witnessing a profound transformation of supply chains and this will continue”, explains Lisa Graham, Director of Industrial Research and Logistics EMEA at JLL. According to a survey carried out by BCI Global60% of American and European companies wish to repatriate certain productions which have hitherto been located in Asia.
The emerging Black Sea market
“The latest events such as the blocking of the Suez Canal or the increase in risks due to climate change have generated projects to overhaul upstream supply chains”, warns Patrick Remorse, i-Log lead director at JLL France. According to the company, the traditional blue banana and the emerging Black Sea banana, two distribution corridors of Europe, are the most likely to see an increase in demand from logistics providers. In addition, the severe supply constraints on the main markets along these corridors will push demand towards the secondary and tertiary markets strategically located along these same corridors.