“Companies who have not adjusted to the eCommerce world that we’re living in are in a world of hurt. If they don’t have the supply chain infrastructure to support the growing demand for eCommerce in the Amazon effect, they’re going to have a lot of trouble surviving in the 2020s.”
– Ward Richmond, Executive Vice President at Colliers International
For years now, companies have been looking to do more with less when it comes to real estate, making the most of expensive investments. In the wake of the COVID-19 pandemic, the trend has reversed, with companies looking to have enough space to maintain the safety of their teams without skyrocketing overhead.
Ward Richmond is an Executive Vice President and shareholder at Colliers International, as well as a blogger at supplychainrealestate.com. The U.S. industrial real estate review for Q1 2020 has just been released, and while the real estate market has changed significantly in the last 3 months, it still provides valuable benchmarks and insight that companies can use.
In this conversation, Ward returns to the show to provide Supply Chain Now Co-hosts Greg White and Scott Luton with an update on:
Intro – Amanda Luton (00:05):
It’s time for supply chain. Now broadcasting live from the supply chain capital of the country, Atlanta, Georgia, heard around the world. Supply chain now spotlights the best in all things. Supply chain, the people, the technologies, the best practices, and the critical issues of the day. And now here are your hosts.
Scott Luton (00:29):
Hey, good afternoon, Scott Luton and Greg white with you here on supply chain. Now welcome to today’s show, Greg. We’ve got a special guest in store today, right? I’m already glad to see him. He’s already here with us right here at the virtual studio.
Ward Richmond (00:44):
Greg White (00:44):
And um, yeah, there he is right there. And um, I’m really looking forward to it because he’s got a really interesting report about what’s going on in real estate. By the way, if you see me looking this way, it’s cause I’m looking over here at the report to check it out. Incredibly thorough ton of information here. We’re going to take the high spots, but uh, there’s a lot to it, so we’ll point everyone to it.
Scott Luton (01:07):
So let’s connect the dots for the folks that may be listening. So first off, we’ve got ward 10 X Richmond with us here today. Uh, executive vice president and shareholder at Colliers international, w w one of the leading real estate firms in the world. Uh, ward. Good afternoon.
Ward Richmond (01:23):
Hello. How are you guys doing your faces? I wish I was
Scott Luton (01:29):
well, I spend too long. Great to have you back. And then it connect the dots on the, on the other thing that Greg mentioned and kind of for shattered a bit, the report he’s talking about, we’re going to be, we’re going to be diving in with ward on the U S industrial Q1 2020 review, which is all about some of the key things you need to know in industrial real estate. Is that, is that right ward?
Ward Richmond (01:49):
Yes sir. I’m looking forward to going over to the high points of that report and of course you can find the entire report upon my firstname.lastname@example.org. And uh, yeah, this is our U S industrial report that we’re going to start off talking about. Um, when we get into the industrial real estate world today. And, uh, it’s a quarterly report that we put out with Colliers international. It’s organized by our head of us industrial research, Amanda or teas. And, uh, it’s just an incredible comprehensive report that’s a bunch of data gathered from all of the different markets throughout the United States related to industrial real estate activity.
Scott Luton (02:33):
It, you know, what, you make me tired just hearing about all of that work that went into the exhaustive research that went into building this report. Um, so before we dive into that, Greg, we want to learn a little bit more about ward and get some good news. But for starters, ward in, you know, in the reader’s digest fashion, tell us about yourself.
Ward Richmond (02:51):
All right, well, I am based out of Dallas, Texas. Born and raised here.
Ward Richmond (02:57):
After high school I attended Brown university and uh, then moved back to Dallas. I started my career in industrial real estate in 2006. So it’s, uh, coming on almost 15 years now. Like I’m just past 14 years of doing this and our team specializes in representing occupiers of industrial real estate globally. So those are, those are the tenants that use the big warehouses and the big manufacturing facilities. So, you know, we work with manufacturers and shippers and, uh, third party logistics companies and trucking companies and pretty much, uh, everything you can imagine within the realm of the supply chain.
Scott Luton (03:39):
Love it. And if you’ve got a problem related to and, and, uh, I love how you specialize, you know, supply chain, you’ve talked in previous shows with us, they really important to, uh, to specialize in the real estate space. So if I’ve got a problem, real estate related or supply chain related ward can be a wonderful resource. And if it’s not him, he’s got a vast network that he leveraged for his clients all the time. And, and the, as you can tell, we’re big fans. This is a wards, I don’t know, probably a six or seven appearance here on supply chain. Now, Hey, before we talk good news ward, and you may, you may break my legs for doing this later, but as a personal aside, you’ve got, I know you’re a huge music artist, used to have a rock and roll tours globally. You’re dropping some new music here next month, right?
Ward Richmond (04:25):
I am. I am. Uh, well I’ve, uh, I’ve been playing music since I was in high school and I’ve actually, prior to the beginning of my career in industrial real estate, I was a professional touring musician, um, in my twenties and, uh, retired from the road back in about 2006 when I started doing this. But, um, along the way, since that time, I’ve still recorded a lot of music, written a lot of songs and I still play shows actually. Um, we just played a show the Saturday before Kobe porn scene began and the world flipped upside down and it was, it was the only show we had booked for the year. So we normally play like one or two shows a year. But yeah, last year I, um, wrote a bunch of new songs and um, went into the studio and it’s one of my favorite things to do and um, assemble the band and uh, worked with an incredible producer and we made an album. So that album’s coming out and on my birthday on June 26th. So it is, so the album is under my name, ward Richmond, and the name of the album is called highly meditated.
Scott Luton (05:36):
Love it. Alright, so let’s talk about some other good news, right? Greg, tell, tell us, I mean, aside from that, which is really, really great news, tell us what’s a, what’s top of your radar right now in terms of good news?
Ward Richmond (05:50):
Yeah, that is exciting news. The music. I have another personal note. I’ll just say like, um, I’ve looked at this is an absolute blessing. Um, I have spent more time with my children, um, and it’s, uh, and since quarantine then I would have to say that I did, I’m talking real present quality time with them. Not necessarily being in the same city or the house is them at the same time, but, um, during this quarantine then I would say in all of last year and this year combined, um, as you guys know, I’ve trout, I used to travel a lot. Uh, I was away for work 70 nights last year, so I was constantly on the road. And then of course when I was home, um, part of my business was lots of entertaining and dinners and conferences and this and that. And I mean, I, you know, we’re going full speed ahead.
Ward Richmond (06:41):
And, uh, now that stage in my career where I think it was the norm to do it, and I knew, I sensed there was something not great going on in terms of my quality time being filled with my young children. Um, and then it came to, I just had a great awakening really since this all started and I’ve gotten to spend so much time with them and watched our relationships just like exponentially improved. So that’s been an incredible blessing on a personal front, on a business front, I can tell you when COBIT happened, probably like most people, I was freaking out quite a bit. And, um, who knows? And I, my, my income is purely transaction based, so I do not have, I mean, are we get compensated when we close deals? And, um, so when something like COBIT occurs, there’s undoubtedly going to be a slowdown and deal closing.
Ward Richmond (07:35):
And, um, that that’s kind of scary when you’re a commission only a 10 99 employee like I am and like all my team members are as well. And um, so it was, it was a little scary, but I think, um, the dust has settled and, um, our business is um, keeping on and thankfully we’re a lot of incredible companies that are weathering the storm and, um, and in some cases even thriving despite the circumstances because as I’m sure you’re all aware, um, there is going to be an uptick in the growth rate of eCommerce, which, uh, is going to be, um, something that has a positive impact on my sector of specializing in industrial real estate,
Greg White (08:23):
increase the, the number and types of distribution facilities as companies try to get closer and closer to the consumer. And we’ve lost a couple of pretty good size retailers that may or may go completely away or may, um, may go e-com. Only pier one just announced that they’re going to liquidate close all of their stores. Maybe, maybe ward, what we ought to do is tell them to just stick the econ and write and get some industrial facilities and, and distribute,
Ward Richmond (08:56):
right. I’m not going to speak about any companies specifically, but I can tell you that companies who have not adjusted to the eCommerce world that we’re living in are big or they’re in a world of hurt. If they don’t have the supply chain infrastructure to support the growing demand for eCommerce in the Amazon effect, they’re going to have a lot of trouble surviving in the 2020s. And, uh, especially postcode mid 20, 20. And uh, if you want to make that happen very quickly, I would say call a three PL. There are lots of three PLS out there that specialize in eCommerce and that’s what, um, most of the, uh, you know, a lot of shippers are doing, uh, simplifies things. The three PL specialize in e-commerce distribution for retailers and that’s all they do for a living is handle the distribution of that eCommerce product.
Ward Richmond (09:51):
So I think, um, now of course there’s lots of eCommerce companies who pride themselves on being an eCommerce, but I’m really specifically talking about retailers who might still be operating on a warehouses that they designed in the nineties. And when I was in the nineties, there were a lot of retailers or household name brands that, um, I had the, where the latest brands of their clothing to when I went to high school so that I might be able to get a date and they were so cool and so stylish and trendy. But the problem is on some of those companies, if you go to their website, then it’s kind of a pain and it’s going to be expensive and slow. And then I say, ah, I made, I’ll try this new brand that’s on Instagram and I can click one button and I pay with Apple and it’s at my house one day and I don’t pay for the delivery.
Greg White (10:44):
Yeah. A lot of the brands, a lot of the retailers we’re seeing go belly up. We’re staggering anyway. Right. We can mention the brands here. That’s what we do. But, um, but you know, JC penny, Neiman Marcus, Macy, several of them, not that they are all belly up in case any of you are shareholders, but they are all staggered and were, were staggered by e-comm to begin with and Cove, it has just been the straw that broke the camel’s back for many of these companies. But that’s a great suggestion. There are so many companies out there. I think the last time you were on board, we talked with Tim Hinkley from radial who does, um, three PL services for e-commerce. And there are a ton of Shopify of course, is really getting into that to try and compete directly with Amazon. And there are a ton of other companies doing that as well. Yep.
Scott Luton (11:33):
ABA. All right. So that’s one of Greg’s favorite acronyms. I love it. Anyone but Amazon
Greg White (11:42):
Scott Luton (11:43):
Right. It’s good to have healthy competition, right. And healthy competition. Alright. So ward moving right along as we dive into this report, you’ve already kind of laid the basis around just how exhausted the research, the thousands of data points and everything that goes into making this a really credible, um, uh, piece of research for business leaders to look at and review. Um, and this comes out every month from the call. Your, you’re right. Every quarter, every quarter. That’s right. Um, it would be a lot of work
Ward Richmond (12:16):
and, and let me throw something else out there. Um, this report track history of what happened in the first quarter of 2020 that was barely affected by Kobe. Um, so it’s almost, I think it’s worth talking about quickly to see what was going on in the U S one. I think what happens in Q two, three and four, um, is it is going to, um, be quite different, quite a different story than what we saw in Q1. And then on top of that, I also don’t think it’s going to be meaningful in terms of what’s going to happen in 2021. So I don’t think it’s going to be like the beginning of some new longterm trend. It’s just going to be like a short snapshot of what happens when the world shuts down for the first time in my life and how that impacts decisions getting made, which is, it slows them down because everybody’s just been scrambling to figure out how to operate in this new environment. And, um, so let’s talk about these numbers are, they’re pretty incredible stats and, um, I do think we’ll see a slow down in Q two, three and four and then, uh, probably absurd happening in 2021. So, um, do you want to hop into some of those slides and I can talk you through them?
Scott Luton (13:37):
Absolutely. And Greg, we’re going to be moving fast and furious. So dive right in here. Yep. All right. So ward your what we’re calling kind of your key insight number one, take it away. Yeah,
Ward Richmond (13:49):
yeah. And feel free to stop me and ask questions if I’m speaking in real estate terms that don’t make sense to you, but that, um, this is our key insight number one. And that top level number 63.5 million square feet is the year to date overall net absorption. That is, uh, that’s how many deals got done. So 63 million square feet of deals got signed in the U S uh, for industrial real estate and Q1 warehouse distribution. Rent rates are $6 and 18 cents per square foot on average. So those costs are per square foot per year is how that cost is being quoted and it’s also being quoted triple net. So that’s not including your taxes or insurance or operating expenses. That’s just your base rental rate. Does that make sense?
Scott Luton (14:39):
Yeah, I think so. Uh, so real quick in some kind of context, some kind of historical context. Six, six bucks, $6 and 18 cents per square foot. Is that a competitive
Greg White (14:52):
rate or what’s your take on that?
Ward Richmond (14:54):
I knew you were going to ask me that. So that’s pretty high. Um, in the history of industrial real estate, I would guess that it kinda, w used to be for pre Amazon prime and then it jumped to five, and now it’s above six level. And, um, so that would be, I’m kind of guessing, but I bet I’m pretty close. And I’m also give you a feel how we get there. Like in, in Dallas, if you’re looking at the rates for, um, the, the large distribution space, it’s, um, closer to $4 a foot. And then in other markets like, uh, Northern California, it’s getting up there closer to $10 a foot. Uh, and so then you can just imagine how that works. Like markets like New Jersey, Seattle, LA, um, all have, um, you know, just a lot more barrier to entry than a Dallas. So we have more land. It’s just going to be lower priced. Um, Chicago’s in Atlanta are pretty close to Dallas pricing. I think in general. Uh, Toronto is extremely high if you want to look into Canada and, um, that’s because it’s just tough to develop buildings in those, uh, in certain markets versus others.
Greg White (16:09):
Gotcha. Gotcha. Okay. Yep.
Ward Richmond (16:12):
Um, the overall vacancy rate is 5.2%. That’s a very healthy vacancy rate. And, uh, on the low side. And, uh, then product under construction is a whopping 330 million square feet of space.
Greg White (16:25):
So you say whopping. So clearly that’s a huge number. So are records or a substantial uptick from the previous year or previous quarter? So I know, yes, probably this is ancient history now, but ward, what was the trend that we were seeing, um, until as you said, the world changed. What do you think was driving that? Was it
Ward Richmond (16:53):
the eCom? Uh, and yeah, the growth of e-commerce that’s been driving it. And I heard, I heard someone, uh, speak the other day that is, uh, with, uh, one of the largest institutional landlords in the country. And I heard, um, this stat that basically e-comm growth has been growing at a clip of 15% per year. Um, and that basically requires 500 million square feet of space or 500 million square feet of demand for industrial real estate at that growth rate. Um, so if, because of Kobe, people like my father started ordering their prescriptions and groceries via econ, which he didn’t used to do and lots of other people in the world that did not use to use e-comm have now almost been forced into it, but now also realize how awesome it is and uh, there’s going to be an increase in the growth rate. So if the growth rate were to increase from 15% to 20, I heard the stat that the demand could increase from 500 million to 900 million square feet. Wow, that’s pretty, that’s quite incredible. Uh, increase in demand is that we could see if that growth rate does in fact increase, which, um, most, most experts I’ve talked to on the matter think that that will happen despite not having a crystal ball.
Speaker 5 (18:13):
We’ve talked about the amount that’s bill and the amount that’s in process. Are we going there here soon or I don’t want to jump ahead of us a little bit, but, um, Ward’s the boss. Yeah. Or do you want to cover of any of your other metrics here? But we have talked about what’s built versus what we expect demand to be and the impact that that can have on pricing.
Ward Richmond (18:37):
Yeah, of course, of course they expected a man to be what’s being built. So I think, but here’s what’s going to happen. This stat for everything under construction, some of this is going to get the pause button is going to get hit because of coal bed. If it hadn’t officially started yet or if it was super early stage, they’re pausing it. Okay. So that number is probably higher than what’s actual is my guests. Got it. And then on top of that, there’s a little bit of a hesitation, pause and demand as well. Um, I think for especially smaller deals, and we’re going to get into this, but I think there’s going to be a little bit of a positive man. Suddenly there’s going to be a surge in demand. I in my what is what I expect. And then also we might have a shortage of supply because people have hit the pause button right now, do the COBIT and then that can create a whole another weird situation where you have like this momentary softening in the market and then boom, it’s like everything changes and we don’t have enough supply to accommodate the demand.
Ward Richmond (19:41):
And then, um, that’s, that could be an issue. Or, uh, the, the dark side of the moon is that the economy pulls apart and nobody can afford to buy e-commerce. And then who knows what will happen. And I know that everyone hopes that does not occur. And obviously the solution to combat that is to get businesses back up and running as quickly and as safely as possible.
Speaker 5 (20:07):
Yup. Yup. Okay. We’re going to keep driving into key insight number two. Are you ready? Ward and Greg. Alright, ready? Alright, so now we’re talking net absorption, which for folks like myself, you’re going to have to explain that, uh, and product under construction. So, so talk about what absorption means first.
Ward Richmond (20:28):
Yeah. Absorption is basically, um, if you imagine you’ve got, um, you know, uh, a big, a big market full of empty warehouses, how much of that empty space is going to get filled? And that’s what the absorption numbers, um, track. So you can see the number one market Q1 was the inland empire. That is the market in case you’re not familiar with that. It’s outside of Los Angeles. It is uh, like Ontario, California where the airport is there in Ontario, California. That is just like the prime hotspot for building these monstrous warehouses that, um, basically sit outside of Los Angeles and service the greater LA area. And um, they, uh, so that’s just a huge market. They’ve had 10 million square feet of absorption. My hometown of Dallas, Fort worth is number two with 8 million. And then you can see Chicago, Houston, Kansas city, Baltimore, and uh, Northern New Jersey are all trailing that. So, um, the next slide there, did you have any other questions or does that all make sense?
Scott Luton (21:41):
Yeah, I think it makes sense to me. Uh, you’re still, when you say the next slide, you’re talking about the product under construction next.
Ward Richmond (21:49):
Yeah. Um, and that is, uh, hometown Dallas, Texas is leading the charge with that, uh, with 35 million square feet under construction followed by Atlanta, Chicago, Houston, LA.
Scott Luton (22:03):
Hey, real quick. Or, uh, you know, Greg and I both are really familiar with, with, you know, why Atlanta, there is number two and some of the factors behind that. Um, it’s a great city to do, to do anything supply chain and technology or logistics or you name it or what some of the things off the top of your head that make DFW in that area. Such a great market.
Ward Richmond (22:24):
Okay. Um, well we have incredible, um, highway infrastructure. We have, um, lots of different interstates running through the DFW metroplex. We also have two inner modals, one service by the BNSF railroad, one service by the union Pacific railroad. We have an industrial only airport at Alliance airport. We have DFW airport, which is one of the most active airports in the world for freight and for, uh, passenger travel. And, uh, then on top of that, we have a very, very fast growing population and I don’t have population stats on DFW and I’m just not good at remembering things like that. But I mean, I know there, here’s what I know is that there used to not be traffic and now I think the traffic here is just almost as bad as the traffic in Los Angeles. And it gets worse every day because people keep moving here.
Ward Richmond (23:15):
And that’s fantastic. So people move here because there’s a low cost of living. There’s lots of jobs, there’s lots of companies that are moving here because we have incredible infrastructure for office space. We have incredible labor pool. There’s no state income tax. We’re central time zone. I’ve been a guy that flew 70 nights last year, um, or was away 70 nights last year. I can fly anywhere in North America in basically three hours or less. Uh, Toronto, Mexico city where LA legal work, wherever I want to go. Atlanta is like two hours. Um, so it’s just very convenient to live here. I can do business on the East and West coast and uh, never have to really adjust my time too much. Um, so that’s nice.
Scott Luton (23:59):
I’m sold, I’m buying a house.
Ward Richmond (24:02):
Can you tell, can you tell like I do this on a daily basis? Yeah, well, it just makes sense. And there’s a lot of big distributors that, um, come here and it’s located right in the middle of the country for the most part. And um, the population growth and yeah, I think that’s it. And we have great labor and it’s affordable and it’s low cost of living and there’s lots of land here so you can keep building and the land is so inexpensive if you go get land. Um, I mean like in LA, I think it’s like 20 to 40 bucks a foot. Um, and Dallas is like, you know, you can go get land for three to five bucks a foot.
Scott Luton (24:43):
Well, you know what, um, we saw some of the available land, Greg, as we ventured out in the supply chain now van to Austin, uh, for the EFT conference way back before the world changed last November. And beyond the great food man there was, there was a expand business expansion everywhere. It’s seen, of course that was, that was quite some time ago.
Ward Richmond (25:04):
Yeah. I mean, I tell you, Austin doesn’t actually have the, even anywhere close to the amount of, um, land supply that we have because the topography there and, uh, they have wakes and rivers and Hills and, uh, Dallas is just flatter. So, um, and we have a lot better highway infrastructure to support the growing population. I think Austin, if you go there, if I think the traffic’s bad in Dallas, traffic in Austin is brutal. And I love, I love Austin so much and I always say I want to move there whenever I go there, especially the rock and roller. I mean, you know, and I, I’m a singer songwriter and that’s such a huge part of the culture in Austin. So I love it, but the traffic’s brutal and they, they just haven’t really designed the roads to support it the way that we have and DFW.
Scott Luton (25:53):
So let me wait, let me get Greg. So, so we’re getting a ton of information here from ward and I love it because it’s not all focused just on real estate. It’s a lot of business observations that whether you’re looking for a site, you’re looking for a job, it might be helpful. Greg, what’s, what’s in any key observation from, from this information data thus far on your end? Yeah, I think what you’re seeing here is you’re seeing a lot of those marketplaces that are the lesser, even of the, even of the relatively costly, they are the lesser costly at a critical crossroads like ward is talking about in Atlanta. We have three interstates that go right through the middle of the city. Um, and that has its blessings and curses. Um, Chicago is a Houston, Kansas city that you mentioned all
Speaker 5 (26:44):
center, uh, of, of the country. Right? And, and with port access and, or, um, transportation access or, you know, in the case of some of these cities, Kansas city has always been a transportation hub, right? Literally the center of the United States. So there are a lot of those things. Even inland empire ward, if you think about that, even though relatively expensive because it’s California, it’s much, much less expensive than it is in the larger, uh, LA or Norco. Right, exactly. You’re exactly right. Is that migration of industry. And now as we’ve started to see with Cova, we’ll start to see migration of workers around the country because as companies, uh, cease to require onsite work, you can live anywhere, right? I just published an article on or posted an article, started publishing, posted an article on LinkedIn about that very thing. Why would people stay in Silicon Valley, right?
Speaker 5 (27:52):
When they can now work from anywhere. Facebook, Twitter, Google. Several companies have allowed their people who already work some from home to work solely from home, right. And there and companies and people are already flocking to Texas and Arizona and Georgia and other States from the expensive marketplaces around the country to see that impact. Um, I think office to some extent, maybe, maybe, um, hoteling or shared office space and, and home real estate as well. Yep. All right. Ward, uh, react to that or, or piggyback on the commentary before we move on to key insight. Number three.
Ward Richmond (28:34):
Do you think I could pull off living in Maui with the time difference?
Speaker 5 (28:40):
It’s funny, it’s funny how many people, you know, I ask people, okay, if you could work from anywhere you wanted to, where would you choose? And it was amazing how almost right off the bat, people designated themselves as beach tribe or mountains or mountain tribe. I don’t know if you’ve ever heard those terms. Those are kind of, um, it was, it was interesting how quickly somebody went, I’m going to the Lake in the mountains, I’m going to the beach, whatever. Right? Totally. It is interesting and people are seriously thinking about it. Mm Hmm. Yep.
Ward Richmond (29:16):
And you can, and uh, yeah, I’ll tell you, I agree with all those thoughts and um, and one thing I did forget to mention about Texas is the, the government, the state of Texas, you know, and the local municipalities and those governments and they’re super business friendly. We’re opening up right now pretty aggressively. Thankfully I got to go to a yoga class this morning that opened back up. They’re handling it very safely. They’re doing social scene, but they’re opening back up so they can like actually operate a business
Speaker 5 (29:46):
so you can stay heavily meditated. Right.
Ward Richmond (29:49):
I try to, I try. Um, so yeah, but I mean I agree with all of that in the office call. Uh, you know, and we had talked about maybe once we get through this report we can talk a little bit about trends. I think we’ve seen due to COBIT and um, and real estate in general. And um, yeah, so this next slide is just gives you, I think a lot of your listeners would be interested to see this. This is who’s taking all this space when we talk about the space getting absorbed, here’s who’s taking it. So I’m the number one taker, third party logistics and packaging companies. No big surprise there. That’s because those retailers are shifting their product to these three PLS and three PLS are taking down the space and their behalf. Right. Um, we’ve seen a big surge in three PL activity since Kobe in lots of parts of the supply chain, primarily e-commerce, food, electronics, and uh, right behind that is general retail and wholesale.
Ward Richmond (30:51):
Now you’re going to see that in a lot of those retailers are, um, signing leases because they, um, can sign longer term leases directly with the landlords and utilize their balance sheets to get better deals than a three PL who may only have a three year contract. So you’re seeing these shippers go sign the actual leaf, even though the three PL might be handling all of the inventory and, um, moving everything around. So, um, that’s something important to know and that’s why that’s 23%. But I mean, I would imagine that a significant portion of that 23% is actually being run by three PLS, even though the actual lease is getting signed by retailers, wholesalers. So, um, that three PO number could, um, really be much larger than it appears here, even though it’s still the top. They’re the top takers of space and, uh, then manufacturing is behind it. There’s been a lot of talk that there’s going to be some onshore in a near shore and a manufacturing going on because of all of this and the continue, uh, trade war. That’s, that’s happening and that seems to be heating back up again. I didn’t hear anything about it for awhile. Now it’s back.
Speaker 5 (32:04):
Right, right. Well, you know, Greg, you were, you were talking on the buzz just a couple days ago about, uh, the survey that supply chain dive covered 64%, I believe was the number of manufacturers that plan on doing some level of reassuring or near shore or near shoring. Right, right. Yeah. I mean, so many companies are moving to this China plus one, two, three or there at least looking at reassuring manufacturing or near shoring. Um, and the very least, I believe we’ll see an uptick. You know, I get nothing from making these predictions. So I believe that we’ll see uptick in industrial space used for manufacturing because companies will at least facilitate a, a secondary sourcing option. Nearshore onshore, um, something like that. Right?
Ward Richmond (32:55):
Yep. And I think you’re going to see a lot of that happening in Mexico and there should be a big uptake in activity and markets close to the Mexico border. And I’ve, I’ve actually heard, uh, Houston come up a lot and, uh, as that would be a great, uh, they, I’ve heard some people say they expect to see some big growth in Houston since due to its proximity to the border and, uh, potentially, uh, you know, being impacted by that, which would be great for Houston due to the current oil situation.
Speaker 5 (33:25):
Yep. All right
Ward Richmond (33:29):
then last but not least are, uh, we have one more slide. Yeah. Now here are the names of some of these occupiers that are taking the space and, uh, and it’s Greg’s favorite company at the top of the list. Um, I didn’t, I like, I don’t know. Um, I don’t know if that, it’s hard to track these exact numbers. We do our best to do it. I can tell you at Amazon, it’s a 6 million square foot beaten, uh, [inaudible] I can tell you in Dallas they took 1.5 million square feet and they’re about to sign another million square foot, at least what I hear. So that’s 2.5 million just in Dallas probably before June. Um, and they, they’ve been aggressively going after space that since COBIT started as Jeff Bezos, I’ve heard it was on his way to becoming the first trillionaire.
Speaker 5 (34:19):
Wow. Right. And the, and they haven’t slowed the construction, at least I haven’t heard of any slowing of the construction, uh, or even remodeling of current spaces. So they are very aggressively tackling this market. They took some, some positions in terms of how to fulfill, knowing that any harm they did to themselves or even their sellers in the short term by cutting off nonessential goods, they knew they would get back. Realizing that eCommerce, as we’ve just talked about, will come back in greater measure than it even than it even was when covert initially happened. So.
Ward Richmond (34:55):
Right. That’s a great point, Greg. And I’ve been stressing this to a lot of my clients. Um, some companies out there have been a little bit shortsighted on how to try to generate value due to COBIT. And the first strategy I think pop to everyone’s mind is let’s go get rent abatements. Let’s go see if we can defer paying rent because
Speaker 5 (35:21):
the eight our way to success,
Ward Richmond (35:23):
this is crazy. Um, exactly. And I naturally felt that way too at first and then after I let it sink in for a few weeks and say, okay, the world is not ending. Um, we’re going to get out of this. Oh man, now you have this little momentary softness in the market. Go sign some big ass leases. That’s what I’d be doing. I’m assuming you’re not about to go out of business because a COBIT, I’m not talking about those companies. They obviously need to focus on the short term and try to get all the help they can get to survive. But those companies that are, are not as worried about surviving. Um, I think it’s an opportune time to call me and go
Speaker 5 (36:04):
and they’re there for you. There you go. That, you know, that’s not unique to real estate board. I mean we’re, you know, I’m on the board of a couple of technology companies, one in the cannabis industry where demand went through the roof immediately. Um, and the other is in supply chain technology and saw a very similar thing. Those companies that were already strong or in a position to get strong, they’re taking advantage of this to separate themselves from their competition. It’s, this has a similar effect that I recall to the great recession, uh, back in 2008 to 2013. So, um, you’re, you’re right, there are a lot of really strong companies that will come out of this in much, much better position in a lot of ways.
Ward Richmond (36:54):
Yeah. And, uh, lots of Atlanta companies on here, like home Depot floor and decor, I believe is out of Atlanta. Is that right? Correct. Right. Um, and I mean that, I went to Lowe’s the other day. They’re on this list of top occupiers. Uh, I started a garden in my backyard with my six year old daughter. Um, I’ve never done that.
Speaker 5 (37:17):
Ward Richmond (37:17):
Yeah, I mean it’s awesome. Yeah, we do. I just went, Lowe’s is pretty close. It was the closest one of all those big, you know, gardening type places next to my house and he go there and it’s packed. Yeah. Um, so super, um, super exciting to see these companies on here. They’re getting after it and I think, and I’ve heard that in general, there was pretty big slowdown in activity in April and now, um, it’s heating back up again and especially on the larger deals, uh, around e-commerce food.
Speaker 5 (37:50):
Yeah. Yeah. Interesting. I mean, how many companies have seen an uptick? Walmart had a 74% increase in e-commerce, right. Sales, right.
Scott Luton (38:03):
Period. And they’re obviously making the announcement of the one day delivery. I don’t have, I can’t remember what they named that service thing. Uh, it’s something obviously that competes with Amazon prime, but they sped up that timeframe because of everything that was taking place with the quarantine and the ramp up in, uh, and as war put it folks that typically didn’t like to get their groceries or other items delivered. They like being in the stores. Right. Folks are finding how convenient it is, um, to get all that stuff delivered to your home. So it’ll be, you know, as we’ve said before, Greg, it’s really interesting to see Walmart take all the punches as taken in recent years as it tries to figure out its e-commerce strategy and, and you know, make some breakthrough moments in the last, in the, you know, especially in the last 12 months or so. So it’s really neat to see. All right, so for folks that, um, uh, are viewing this video, you can clearly have you got ward Richmond’s contact information. Um, and if you are listening to this episode, maybe you can check him email@example.com for content resources. And of course if you want to connect with him, um, just want to point that out. But, but we’re not done with ward just yet cause we want to make sure, uh, Greg from current market activity, uh, give us an observation or two there, right? Yeah,
Speaker 5 (39:24):
yeah. Tell us about the, uh, tell us what you’re seeing in terms of, you know, what’s going on and maybe even, I know you don’t have a crystal ball, but maybe even what you see coming,
Ward Richmond (39:38):
right? Yeah. So I mean, one thing to think about is everyone’s having to change the way they operate. So, um, they’re doing temperature checks. These warehouses, if there’s some kind of a, you know, there’s some people getting sick, you might have to go clean these warehouses. That could be a two to three day process for 500,000 square foot distribution center. Uh, there’s been pay hikes for the workers, um, for, uh, these essential employees. They’re going out there and working in these warehouses. I’ve been in an Amazon warehouse and I mean, I, I can only imagine, uh, the fear that some of those people might, might feel when they walk in there. The beginning of all of this, I mean, I felt nervous going to the gas station because my, my uncle got me paranoid about touching the gas pump. And then I can only imagine going into an Amazon distribution center and how that must feel.
Ward Richmond (40:31):
So I’m there training all of these employees on how to promote social distancing and restructuring the flow of employees that’s happening in all everything, every sector of commercial real estate, from multifamily apartment complexes to retail to um, office and industrial. Like you’re having to have this new PLO and put up these screens in elevators. If you have elevators, how many people can be in. Um, um, the, my yoga class, you got to wear a mat. We had to wear a mask to go in. It’s a locally owned yoga place so we could actually practice without the mask, which was great. So I didn’t pass out. But um, there’s like core power yoga where I go in Atlanta is a chain, so they have like 20 locations across the country. I’m a member there because how often I travel and um, they, I’ve heard that they actually make you wear a mask when you do yoga. Um, so, eh, I know some, some places are having to do that and just, it’s just going to vary from company to company, but you have to take all these precautions and then, yeah.
Scott Luton (41:38):
Hey, real quick, real quick. Uh, going back to work force, um, some of the things we’re seeing there in the U S government has frozen certain aspects of the aid of the American with disabilities act so that employers could take temperature of their workforce as they enter the plants. That’s right.
Ward Richmond (41:58):
Yep. Um, yeah, that’s happening. And um, and that’s happening everywhere. They’re having a yoga today. Um, they took my temperature there right when I walked in. So was it
Scott Luton (42:10):
just out of curiosity,
Ward Richmond (42:12):
98.7, I don’t know. Thankfully I’m feeling pretty good. So office space that, that’s kind of kind of retail office. Little scary. I think multifamily scary because a lot of people that are renting apartments have been living month to month evidently, and they don’t have jobs or they’re getting furloughed and so many people are getting laid off. They’re not able to pay the rent. That’s what I, you know, the concern is their retail. Um, you know, they’re, they’ve had to, they’ve been forced, forced to be shut down. I was talking to my friends. Uh, I have from my days as a musician, I have a lot of bar owner friends and cause we, my band used to play in a lot of bars, nightclubs and um, so I still am just really tied into that those people in that industry. And they can open back up this Friday in Dallas, the bars can, but one of my good friends, she has a couple of bars in Dallas and she’s not even gonna open back up because you have to operate at 25% capacity and you can’t like stand next to the bar. And she’s like, what, what am I going to do when they get drunk at the bar? And then I’m trying to tell him to not stand at the bar. Like, I mean it sounds, it sounds really tough on a lot of these businesses and uh, I know there’s been, I mean it’s just, it’s just kind of weird.
Scott Luton (43:34):
You guys have solutions
Ward Richmond (43:35):
for sure. There’s a lot of restaurants and bars that were barely making it month to month staying alive and now you’ve got to operate at 25%. I don’t understand really how it works. Um, but that being said, offices are also going to change. I have many close friends and clients that have hundreds, if not thousands of employees that have lots of office space. And I do a lot of office space deals too because a lot of my clients have a lot of office space. Um, and they’re rethinking it. So different things that are happening there, they’re shifting presence. They’re doing eight days and B days where certain maybe certain percentage of employees are continue to work from home full time. A certain percentage have to come back to the office, but they’re coming on different days. Um, another thing, I mean, they’re shutting down thing.
Ward Richmond (44:23):
All these trendy things that used to do like have, um, more or like a smaller per square foot per person to maximize, to get more bang for your buck, not have to take quite as much office space. They were doing, sharing a work desk workspaces and all of that. Like that’s going to have to go in the opposite direction. So they’re going to have to have more per square foot per person. And they’re gonna have to have dedicated desk or you’re going to have to clean the desk every time someone leaves it. Right? So that’s going to be kind of different. And I have one of my good friends, they have four or five offices across the country and he told me there’s subways in all our space now and they’re only going to just, they’re just going to leave some dedicated meeting space for their employees to use for dedicated meetings.
Ward Richmond (45:11):
And if he wants to get the whole company together, he’ll go rent out, uh, patios at, uh, restaurants to get groups of less than 50 together. Um, so public transportation, something else that’s going to be a concern in inner city urban environments that we’re becoming the thing and everybody’s moving back to the city now. Um, there might be a little bit of a move back to the suburbs because there’s going to be more room to park. They’re not going to have to put their employees at risk writing on trains. And, um, everybody’s very concerned about the health and wellbeing and the safety. And of course, um, just the, you know, the culture. And how they’re going to make their employees feel and they want their employees to feel they’re being taken care of.
Scott Luton (45:56):
That is a sale line. Sorry, Scott, go ahead. I was going to say that that’s a silver lining and all of this, right? We’ve been banging the drum for a while. You know? Of course the has gotta be the frontline medical folks gotta be protected first responders, but man, you know the, in the end supply chain, the truck drivers, the pickers, Packers, you name it, they keep the country moving. They keep the world moving and wrapping them up and protect them. I hope that that’s one of the big silver linings that comes out of all of this. Greg, what were you going to say?
Speaker 5 (46:27):
E-bikes? Sales are up dramatically because people are trying to avoid public transportation. There was already concerns about what the term I heard used by some of the commercial real estate people. I know Phantom leases where the space had already been abandoned, but the lease had not gone up. The last company that I had, one of the things that we were working on was how to tell whether space that was leased was actually being used so that the landlord would not be caught off guard when the lease, uh, you know, when the lease turned up. So this will be the opposite of good news for office space. I can assure you of that.
Ward Richmond (47:05):
The only thing, the only thing they have going for it is that you’re going to have to take more office space per person than you used to. And that might have some balancing effects. But the overall impact I would guess is going to be net negative. Um, in terms of spend on office space, it’s going to go down, therefore pricing will go down. Um, and I mean the demands definitely. I, it just, I don’t see it not going down. Uh, and I, people like working from home, uh, we ran a survey and it showed that like the majority of people wanted to work from home, I believe, three days a week. And I, that’s what I answered. And I already, I mean I already worked from home a lot and I was on the road all the time anyway. So I was very accustomed to just being a very remote worker.
Ward Richmond (47:51):
Right. Um, and um, but a lot of people never got to experience the freedom of that and now they have and they don’t want to go back and they’re more efficient. They’re getting more work done and they actually, in some cases they’re like working three extra hours a day cause they’re not traveling. So I mean their, their employers are pretty pumped about it. And, um, for those people, I would remind you that you need to control your schedule when you have that kind of freedom. Like I’ve had things we had for a long time with my type of job and, uh, you need to make sure you’re not working yourself to death and you block your time and as needed and appropriately so that you’re not working too hard because,
Scott Luton (48:29):
so we got it. Hey, so real quick. Uh, so in light of that picture you painted where, um, you know, there won’t be as much demand, you don’t think for real estate, certainly office space, um, while industrial space, you know, given e-commerce and other trends, you got partner with a specialized resource to make sure that you’re getting the full picture right and, and, and making sure you have all options at the table that, that, that it seems to me that special specialization right now, whether it’s a three PL, whether it’s a real estate broker or resource or, or many other things, it perhaps is extreme is more important than, than what it has been recent months. Agreed. Or
Ward Richmond (49:14):
it’s equally important, but now people are just finally maybe realizing it for the first time. But yeah,
Scott Luton (49:23):
Speaker 5 (49:23):
I think I agree. I agree complete with completely with that. And I think it also, it’s rare to find someone like ward who has a realistic perspective. I don’t want to say realistic but balanced perspective on the marketplace. What I find very often is that, and know this is the nature of the person who does the job. Real estate agents are inherently optimistic and they often ignore the realities of the marketplace because they want to believe that it will always be or takes a very balanced approach. He knows not just this, the real estate business, he knows the supply chain business. And he can balance that perspective from knowing that as well. So if, if you don’t get help from ward, get help from somebody like ward who has that balanced perspective or triangulate amongst a number of professionals to try and get a balanced perspective.
Scott Luton (50:16):
Love that. All right, so
Ward Richmond (50:18):
you so much for the kind words brother.
Scott Luton (50:20):
You bet man. Hey, it’s, it’s all genuine or you know, we wouldn’t be saying it especially right now. Hey, um, so let’s do this. Uh, I know for the sake of time, I know where you’ve got a slew of meetings, uh, before we wrap up here or before we wrap up the day, let’s make sure that folks know how to get in touch with you. So what, where can they find you?
Ward Richmond (50:43):
But they can find firstname.lastname@example.org. And uh, that’s the best man. Um, we’ve, I’ve got everything there from Mark the market overview. We discussed, I have a DFW specific market overview. Um, all the podcasts that we’ve done together up on the website, I have a video telling you exactly what our team does and case studies showing how we’ve generated tens of millions of dollars in savings for our clients. Um, who includes some of the most incredible companies in the world, like FedEx and writer DB, Schenker, TFI international and Keller logistics, Palmer logistics. We have so many incredible customers. We’re very thankful during this time to, um, be working with these companies and uh, helping them to take their, uh, supply chains to the next level.
Scott Luton (51:28):
The syndicate, the supply chain syndicate. That’s your team, right?
Ward Richmond (51:33):
Yeah, that’s what we call ourselves.
Scott Luton (51:35):
And I love that video. Y’all did. I think I’ll publish that probably six months or so. You know, uh, it really personalizes the team and, and y’all have got a ton of passion and a ton of expertise, so we always love to have your own. And look forward to reconnecting with you again soon. Greg, I got an a with ward still here. Before we wrap up, I got to ask you for your one key hot take before we, we conclude today’s session.
Speaker 5 (52:00):
Um, well for industrial space and, and a lot of commercial space, it’s going to get a lot better for office space. I’m a firm believer it’s going to get a lot worse, but the most important hot take for today is ward Richmond. Com.
Scott Luton (52:18):
Always a pleasure
Speaker 5 (52:20):
trained professional at what he does, no matter what it is. So check out his music and I think you’ll enjoy it.
Scott Luton (52:25):
Awesome. Hey Warren, thanks so much for joining us. Sit tight for a second. We’re going to wrap up and lightning round speed. Give us two minutes. We’ve got a couple upcoming events that I’m, I’m sure if you’re aware of war, what we’ve got tracking here. So starting with supply chain trivia, who would have thought supply chain trivia would be such a thing? However, this has been popular. Folks want to, they want to kind of distress a war. Do you need to jump into competition? I bet you’d be a fierce competitor. Uh, next round is June 3rd, 9:30 AM Eastern daylight time. We’re doing that Greg, because it’s our Eastern hemisphere edition, right? Yeah,
Speaker 5 (53:01):
that’s right. This is our Eastern hemisphere edition. We had a three day Grundy, uh, this, this past week or past, uh, round and the round before Nickeel Wadhwa both doing great at two 30 in the morning. So we, we want to see how good they are during office hours.
Scott Luton (53:19):
That’s right. Our current champ is Coby cannoli. He didn’t miss a single question last go round. So, uh, we’re looking forward to partnering with say pics, which is a great group, doing big things in supply chain across the continent of Africa. So join us June 3rd at 9:30 AM Eastern daylight time. And then, uh, let’s see, before we even get to trivia, we’ve got, uh, Mike Rosewall with Gardner and that their top 25 supply paint for 2020 was just released in the last couple of days putting us on May 27th. What’s he going to talk about, Greg?
Speaker 5 (53:53):
Well, he’s going to talk about some of the key takeaways from that. Look, if you’re in the supply chain industry, I would encourage you reward to have your clients. Uh, take a look at this because we’re going to talk about some of the key takeaways. You don’t have to pay for a report, you don’t have to be a Gartner subscriber, but you can still hear from the top retail and um, and supply chain analyst at Gartner, Mike Griswold and learn something that will benefit your business. Whether you’re big or small, your retailer, manufacturer, distributor or otherwise you’re going to learn something that’s going to,
Scott Luton (54:27):
to help you improve your business. Hey Mike Griswold is the Tom Brady of supply chain ranking. Is that Greg? I know that we probably shouldn’t use,
Speaker 5 (54:35):
I probably appreciate John wooden but most people don’t know who John wooden is. So I think he’d take Tom Brady. Yeah, he’s also a basketball coach. Another another professional with a side hustle. Yup. It was back as well.
Scott Luton (54:49):
Um, micro as well. Alright. So ward, we got count on you being there cause I bet you can contribute a lot to the conversation with these webinars. We always have a very loudly Q and a, both comments and observations as well as questions from the audience. So we invite all of our friends to join us. May 27th, uh, at 12 noon Eastern daylight time supply chain, real estate.com, supply chain now, radio.com. Those are the places we’ll have it in the show notes, a ward. Uh, I’m going to give you the last word before we wrap up here.
Ward Richmond (55:22):
All right, well everybody take care out there. Stay safe. And um, just, you know, I think it’s a great time to keep your head down. And if you look at the history of business in the United States of America, some of the most incredible companies have been formed in moments like this at times of economic recessions. That’s when you have an opportunity to go make some big moves and uh, take advantage of, uh, the, you know, this, this current landscape. So I think it’s important to just stay focused and stay productive. And I’m hopeful that this all, um, hopefully come to an end and turn to some sort of normalcy soon.
Scott Luton (56:04):
That’s right. I couldn’t imagine that the new normal is around the corner. We’ve seen some, some great positivity here. Uh, the light in the tunnel brighter, brighter days do lie ahead ward. I loved how you ended it and Greg, on that note, uh, we want to tell everybody, thanks for joining us here today. Uh, stay safe and join us next time here on supply chain now. Thanks everybody. Thanks everybody. Thanks.
Ward Richmond is an Executive Vice President and shareholder at Colliers International (NASDAQ: CIGI). His team within Colliers specializes in working with C-level executives and operational specialists to develop and execute corporate real estate strategies on a local and global basis in an effort to maximize operational efficiencies and value. Ward’s primary focus is representing dominant logistics companies in the acquisition and disposition of “supply chain real estate”: distribution centers, truck terminals, last mile hubs, manufacturing facilities and industrial land. With over 12 years of experience, Ward has developed an unparalleled understanding of Supply Chain Real Estate strategy via negotiating 500+ transactions, globally, in 50+ cities while generating millions in value for his customers. Ward enjoys reading, writing and speaking about eCommerce and the logistics industry. He’s been featured on podcasts like the GaryVee Audio Experience and interviewed by multiple publications including The Wall Street Journal. Ward has also been a featured speaker at multiple real estate and logistics conferences around the globe. Ward currently serves on the steering committee for the Colliers International Logistics & Transportation Solutions Group and is an active member of IWLA, IAMC, and the semi-legendary, Texas Warehouse Association. Be sure to check out Ward’s blog at: www.SupplyChainRealEstate.com and learn more about Colliers International here: https://www2.colliers.com/en
Host, Logistics with Purpose
Adrian Purtill serves as Business Development Manager at Vector Global Logistics, where he consults with importers and exporters in various industries to match their specific shipping requirements with the most effective supply chain solutions. Vector Global Logistics is an asset-free, multi-modal logistics company that provides exceptional sea freight, air freight, truck, rail, general logistic services and consulting for our clients. Our highly trained and professional team is committed to providing creative and effective solutions, always exceeding our customer’s expectations and fostering long-term relationships. With more than 20+ years of experience in both strategy consulting and logistics, Vector Global Logistics is your best choice to proactively minimize costs while having an exceptional service level.
Joshua is a student from Institute of Technology and Higher Education of Monterrey Campus Guadalajara in Communication and Digital Media. His experience ranges from Plug and Play México, DearDoc, and Nissan México creating unique social media marketing campaigns and graphics design. Joshua helps to amplify the voice of supply chain here at Supply Chain Now by assisting in graphic design, content creation, asset logistics, and more. In his free time he likes to read and write short stories as well as watch movies and television series.
Director of Communications and Executive Producer
Donna Krache is a former CNN executive producer who has won several awards in journalism and communication, including three Peabodys. She has 30 years’ experience in broadcast and digital journalism. She led the first production team at CNN to convert its show to a digital platform. She has authored many articles for CNN and other media outlets. She taught digital journalism at Georgia State University and Arizona State University. Krache holds a bachelor’s degree in government from the College of William and Mary and a master’s degree in curriculum and instruction from the University of New Orleans. She is a serious sports fan who loves the Braves. She is president of the Dave Krache Foundation. Named in honor of her late husband, this non-profit pays fees for kids who want to play sports but whose parents are facing economic challenges.
Vicki has a long history of rising to challenges and keeping things up and running. First, she supported her family’s multi-million dollar business as controller for 12 years, beginning at the age of 17. Then, she worked as an office manager and controller for a wholesale food broker. But her biggest feat? Serving as the chief executive officer of her household, while her entrepreneur husband travelled the world extensively. She fed, nurtured, chaperoned, and chauffeured three daughters all while running a newsletter publishing business and remaining active in her community as a Stephen’s Minister, Sunday school teacher, school volunteer, licensed realtor and POA Board president (a title she holds to this day). A force to be reckoned with in the office, you might think twice before you meet Vicki on the tennis court! When she’s not keeping the books balanced at Supply Chain Now or playing tennis matches, you can find Vicki spending time with her husband Greg, her 4 fur babies, gardening, cleaning (yes, she loves to clean!) and learning new things.
Founder, CEO, & Host
As the founder and CEO of Supply Chain Now, you might say Scott is the voice of supply chain – but he’s too much of a team player to ever claim such a title. One thing’s for sure: he’s a tried and true supply chain expert. With over 15 years of experience in the end-to-end supply chain, Scott’s insights have appeared in major publications including The Wall Street Journal, USA Today, and CNN. He has also been named a top industry influencer by Thinkers360, ISCEA and more.
From 2009-2011, Scott was president of APICS Atlanta, and he continues to lead initiatives that support both the local business community and global industry. A United States Air Force Veteran, Scott has also regularly led efforts to give back to his fellow veteran community since his departure from active duty in 2002.
Host, Logistics with Purpose
Allison Krache Giddens has been with Win-Tech, a veteran-owned small business and aerospace precision machine shop, for 15 years, recently buying the company from her mentor and Win-Tech’s Founder, Dennis Winslow. She and her business partner, John Hudson now serve as Co-Presidents, leading the 33-year old company through the pandemic.
She holds undergraduate degrees in psychology and criminal justice from the University of Georgia, a Masters in Conflict Management from Kennesaw State University, a Masters in Manufacturing from Georgia Institute of Technology, and a Certificate of Finance from the University of Georgia. She also holds certificates in Google Analytics, event planning, and Cybersecurity Risk Management from Harvard online. Allison founded the Georgia Chapter of Women in Manufacturing and currently serves as Treasurer. She serves on the Chattahoochee Technical College Foundation Board as its Secretary, the liveSAFE Resources Board of Directors as Resource Development Co-Chair, and on the Leadership Cobb Alumni Association Board as Membership Chair and is also a member of Cobb Executive Women. She is on the Board for the Cobb Chamber of Commerce’s Northwest Area Councils. Allison runs The Dave Krache Foundation, a non-profit that helps pay sports fees for local kids in need.
Principal, Supply Chain Now
Host of Supply Chain Now and TECHquila Sunrise
When rapid-growth technology companies, venture capital and private equity firms are looking for advisory, they call Greg – a founder, board director, advisor and catalyst of disruptive B2B technology and supply chain. An insightful visionary, Greg guides founders, investors and leadership teams in creating breakthroughs to gain market exposure and momentum – increasing overall company esteem and valuation.
Greg is a founder himself, creating Blue Ridge Solutions, a Gartner Magic Quadrant Leader in cloud-native supply chain applications, and bringing to market Curo, a field service management solution. He has also held leadership roles with Servigistics (PTC) and E3 Corporation (JDA/Blue Yonder). As a principal and host at Supply Chain Now, Greg helps guide the company’s strategic direction, hosts industry leader discussions, community livestreams, and all in addition to executive producing and hosting his original YouTube channel and podcast, TEChquila Sunrise.
Principal, Supply Chain Now
Host of Supply Chain is Boring
Talk about world-class: Chris is one of the few professionals in the world to hold CPIM-F, CLTD-F and CSCP-F designations from ASCM/APICS. He’s also the APICS coach – and our resident Supply Chain Doctor. When he’s not hosting programs with Supply Chain Now, he’s sharing supply chain knowledge on the APICS Coach Youtube channel or serving as a professional education instructor for the Georgia Tech Supply Chain & Logistic Institute’s Supply Chain Management (SCM) program and University of Tennessee-Chattanooga Center for Professional Education courses.
Chris earned a BS in Industrial Engineering from Bradley University, an MBA with emphasis in Industrial Psychology from the University of West Florida, and is a Doctoral in Supply Chain Management candidate.
Host of TEKTOK
If there’s one Supply Chain ‘Pro to Know,’ it’s Karin. She’s earned the title for three years and counting – culminating in her designation as the “2020 Supply Chain Pro to Know of the Year.” Karin is also an award-winning digital supply chain, business strategy and technology marketing executive. A sought-after speaker at industry conferences, you will find her quoted in a variety of supply chain publications – and active in forums like ASCM/APICS and CSCMP.
With more than 25 years of supply chain experience, Karin spearheaded strategy and marketing for Gartner Magic Quadrant Leader and IDC MarketScape Leader, Logility. Karin has the heart of a teacher and has helped nearly 1,000 customers transform their businesses and tell their success stories. Today, she is a sought-after advisor helping high-growth B2B technology companies with everything from defining their unique value propositions to introducing new products and capturing customer success. No matter their goals, she makes sure her clients have actionable marketing strategies that help grow global revenue, market share and profitability.
Host of Digital Transformers
Kevin L. Jackson is a globally recognized Thought Leader, Industry Influencer and Founder/Author of the award winning “Cloud Musings” blog. He has also been recognized as a “Top 5G Influencer” (Onalytica 2019, Radar 2020), a “Top 50 Global Digital Transformation Thought Leader” (Thinkers 360 2019) and provides strategic consulting and integrated social media services to AT&T, Intel, Broadcom, Ericsson and other leading companies. Mr. Jackson’s commercial experience includes Vice President J.P. Morgan Chase, Worldwide Sales Executive for IBM and SAIC (Engility) Director Cloud Solutions. He has served on teams that have supported digital transformation projects for the North Atlantic Treaty Organization (NATO) and the US Intelligence Community. Kevin’s formal education includes a MS Computer Engineering from Naval Postgraduate School; MA National Security & Strategic Studies from Naval War College; and a BS Aerospace Engineering from the United States Naval Academy. Internationally recognizable firms that have sponsored articles authored by him include Cisco, Microsoft, Citrix and IBM. Books include “Click to Transform” (Leaders Press, 2020), “Architecting Cloud Computing Solutions” (Packt, 2018), and “Practical Cloud Security: A Cross Industry View” (Taylor & Francis, 2016). He also delivers online training through Tulane University, O’Reilly Media, LinkedIn Learning, and Pluralsight. Mr. Jackson retired from the U.S. Navy in 1994, earning specialties in Space Systems Engineering, Carrier Onboard Delivery Logistics and carrier-based Airborne Early Warning and Control. While active, he also served with the National Reconnaissance Office, Operational Support Office, providing tactical support to Navy and Marine Corps forces worldwide.
Host of Logistics with Purpose and Supply Chain Now en Español
Enrique serves as Managing Director at Vector Global Logistics and believes we all have a personal responsibility to change the world. He is hard working, relationship minded and pro-active. Enrique trusts that the key to logistics is having a good and responsible team that truly partners with the clients and does whatever is necessary to see them succeed. He is a proud sponsor of Vector’s unique results-based work environment and before venturing into logistics he worked for the Boston Consulting Group (BCG). During his time at BCG, he worked in different industries such as Telecommunications, Energy, Industrial Goods, Building Materials, and Private Banking. His main focus was always on the operations, sales, and supply chain processes, with case focus on, logistics, growth strategy, and cost reduction. Prior to joining BCG, Enrique worked for Grupo Vitro, a Mexican glass manufacturer, for five years holding different positions from sales and logistics manager to supply chain project leader in charge of five warehouses in Colombia.
He has an MBA from The Wharton School of Business and a BS, in Mechanical Engineer from the Technologico de Monterrey in Mexico. Enrique’s passions are soccer and the ocean, and he also enjoys traveling, getting to know new people, and spending time with his wife and two kids, Emma and Enrique.
Host of Dial P for Procurement
Kelly is the Owner and Managing Director of Buyers Meeting Point and MyPurchasingCenter. She has been in procurement since 2003, starting as a practitioner and then as the Associate Director of Consulting at Emptoris. She has covered procurement news, events, publications, solutions, trends, and relevant economics at Buyers Meeting Point since 2009. Kelly is also the General Manager at Art of Procurement and Business Survey Chair for the ISM-New York Report on Business. Kelly has her MBA from Babson College as well as an MS in Library and Information Science from Simmons College and she has co-authored three books: ‘Supply Market Intelligence for Procurement Professionals’, ‘Procurement at a Crossroads’, and ‘Finance Unleashed’.
Host, Veteran Voices
Mary Kate Soliva is transitioning from active duty in the US Army. She is currently in the Doctor of Criminal Justice program at Saint Leo University. She is passionate about combating human trafficking and has spent the last decade conducting training for military personnel and the local community.
Jeff Miller is the host of Supply Chain Now’s Supply Chain is the Business. Jeff is a digital business transformation and supply chain advisor with deep expertise in Industry 4.0, ERP, PLM, SCM, IoT, AR and related technologies. Through more than 25 years of industry and consulting experience, he has worked with many of the world’s leading product and service companies to achieve their strategic business and supply chain goals, creating durable business value for organizations at the forefront of technology and business practices. Jeff is the managing director for North America at Transition Technologies PSC, a global solution integrator, and the founder and managing principal of BTV Advisors, a firm that helps companies secure business transformation value from digital supply chain technologies and their breakthrough capabilities.
Chief Marketing Officer
Amanda is a marketing veteran and entrepreneur with over 15 years of experience across a variety of industries and organizations including Von Maur, Anthropologie, AmericasMart Atlanta, and Children’s Healthcare of Atlanta. In 2016, Amanda founded and grew the Magnolia Marketing Group into a successful digital media firm, and now she develops modern marketing strategies, social campaigns, innovative operational processes, and implements creative content initiatives for Supply Chain Now. But that’s just the beginning of her supply chain impact. Amanda also served as the VP of Information Systems and Webmaster on the Board of Directors for APICS Savannah for several years, and is the face behind the scenes welcoming you to every Supply Chain Now livestream! She was also recently selected as one of the Top 100 Women in Supply Chain by Supply Chain Digest and IBM. When she’s not leading the Supply Chain Now marketing team, you can find Amanda with her and her husband Scott’s three kids, in the kitchen cooking, or reading.
Business Development Manager
Clay is passionate about two things: supply chain and the marketing that goes into it. Recently graduated with a degree in marketing at the University of Georgia, Clay got his start as a journalism major and inaugural member of the Owl’s football team at Kennesaw State University – but quickly saw tremendous opportunity in the Terry College of Business. He’s already putting his education to great use at Supply Chain Now, assisting with everything from sales and brand strategy to media production. Clay has contributed to initiatives such as our leap into video production, the guest blog series, and boosting social media presence, and after nearly two years in Supply Chain Now’s Marketing Department, Clay now heads up partnership and sales initiatives with the help of the rest of the Supply Chain Now sales team.
Trisha is new to the supply chain industry – but not to podcasting. She’s an experienced podcast manager and virtual assistant who also happens to have 20 years of experience as an elementary school teacher. It’s safe to say, she’s passionate about helping people, and she lives out that passion every day with the Supply Chain Now team, contributing to scheduling and podcast production.
Host of Dial P for Procurement
Billy Taylor is a Proven Business Excellence Practitioner and Leadership Guru with over 25 years leading operations for a Fortune 500 company, Goodyear. He is also the CEO of LinkedXL (Excellence), a Business Operating Systems Architecting Firm dedicated to implementing sustainable operating systems that drive sustainable results. Taylor’s achievements in the industry have made him a Next Generational Lean pacesetter with significant contributions.
An American business executive, Taylor has made a name for himself as an innovative and energetic industry professional with an indispensable passion for his craft of operational excellence. His journey started many years ago and has worked with renowned corporations such as The Goodyear Tire & Rubber Co. (GT) leading multi-site operations. With over 3 decades of service leading North America operations, he is experienced in a deeply rooted process driven approach in customer service, process integrity for sustainability.
A disciple of continuous improvement, Taylor’s love for people inspires commitment to helping others achieve their full potential. He is a dynamic speaker and hosts "The Winning Link," a popular podcast centered on business and leadership excellence with the #1 rated Supply Chain Now Network. As a leadership guru, Taylor has earned several invitations to universities, international conferences, global publications, and the U.S. Army to demonstrate how to achieve and sustain effective results through cultural acceptance and employee ownership. Leveraging the wisdom of his business acumen, strong influence as a speaker and podcaster Taylor is set to release "The Winning Link" book under McGraw Hill publishing in 2022. The book is a how-to manual to help readers understand the management of business interactions while teaching them how to Deine, Align, and Execute Winning in Business.
A servant leader, Taylor, was named by The National Diversity Council as one of the Top 100 Diversity Officers in the country in 2021. He features among Oklahoma's Most Admired CEOs and maintains key leadership roles with the Executive Advisory Board for The Shingo Institute "The Nobel Prize of Operations" and The Association of Manufacturing Excellence (AME); two world-leading organizations for operational excellence, business development, and cultural learning. He is also an Independent Director for the M-D Building Products Board, a proud American manufacturer of quality products since 1920.
Social Media Manager
My name is Chantel King and I am the Social Media Specialist at Supply Chain Now. My job is to make sure our audience is engaged and educated on the abundant amount of information the supply chain industry has to offer.
Social Media and Communications has been my niche ever since I graduated from college at The Academy of Art University in San Francisco. No, I am not a West Coast girl. I was born and raised in New Jersey, but my travel experience goes way beyond the garden state. My true passion is in creating editorial and graphic content that influences others to be great in whatever industry they are in. I’ve done this by working with lifestyle, financial, and editorial companies by providing resources to enhance their businesses.
Another passion of mine is trying new things. Whether it’s food, an activity, or a sport. I would like to say that I am an adventurous Taurus that never shies away from a new quest or challenge.
Lori is currently completing a degree in marketing with an emphasis in digital marketing at the University of Georgia. When she’s not supporting the marketing efforts at Supply Chain Now, you can find her at music festivals – or working toward her dream goal of a fashion career. Lori is involved in many extracurricular activities and appreciates all the learning experiences UGA has brought her.
Sales and Marketing Coordinator
Katherine is a marketing professional and MBA candidate who strives to unite her love of people with a passion for positive experiences. Having a diverse background, which includes nonprofit work with digital marketing and start-ups, she serves as a leader who helps people live their most creative lives by cultivating community, order, collaboration, and respect. With equal parts creativity and analytics, she brings a unique skill set which fosters refining, problem solving, and connecting organizations with their true vision. In her free time, you can usually find her looking for her cup of coffee, playing with her puppy Charlie, and dreaming of her next road trip.
Ben Harris is the Director of Supply Chain Ecosystem Expansion for the Metro Atlanta Chamber. Ben comes to the Metro Atlanta Chamber after serving as Senior Manager, Market Development for Manhattan Associates. There, Ben was responsible for developing Manhattan’s sales pipeline and overall Americas supply chain marketing strategy. Ben oversaw market positioning, messaging and campaign execution to build awareness and drive new pipeline growth. Prior to joining Manhattan, Ben spent four years with the Georgia Department of Economic Development’s Center of Innovation for Logistics where he played a key role in establishing the Center as a go-to industry resource for information, support, partnership building, and investment development. Additionally, he became a key SME for all logistics and supply chain-focused projects. Ben began his career at Page International, Inc. where he drove continuous improvement in complex global supply chain operations for a wide variety of businesses and Fortune 500 companies. An APICS Certified Supply Chain Professional (CSCP), Ben holds an Executive Master’s degree in Business Administration (EMBA) and bachelor’s degree in International Business (BBA) from the Terry College at the University of Georgia.
Host, The Freight Insider
Prior to joining TeamOne Logistics, Page Siplon served as the Executive Director of the Georgia Center of Innovation for Logistics, the State’s leading consulting resource for fueling logistics industry growth and global competitiveness. For over a decade, he directly assisted hundreds of companies to overcome challenges and capitalize on opportunities related to the movement of freight. During this time, Siplon was also appointed to concurrently serve the State of Georgia as Director of the larger Centers of Innovation Program, in which he provided executive leadership and vision for all six strategic industry-focused Centers. As a frequently requested keynote speaker, Siplon is called upon to address a range of audiences on unique aspects of technology, workforce, and logistics. This often includes topics of global and domestic logistics trends, supply chain visibility, collaboration, and strategic planning. He has also been quoted as an industry expert in publications such as Forbes, Journal of Commerce, Fortune, NPR, Wall Street Journal, Reuters, American Express, DC Velocity, Area Development Magazine, Site Selection Magazine, Inbound Logistics, Modern Material Handling, and is frequently a live special guest on SiriusXM’s Road Dog Radio Show. Siplon is an active industry participant, recognized by DC Velocity Magazine as a “2012 Logistics Rainmaker” which annually identifies the top-ten logistics professionals in the Nation; and named a “Pro to Know” by Supply & Demand Executive Magazine in 2014. Siplon was also selected by Georgia Trend Magazine as one of the “Top 100 Most Influential Georgians” for 2013, 2014, and 2015. He also serves various industry leadership roles at both the State and Federal level. Governor Nathan Deal nominated Siplon to represent Georgia on a National Supply Chain Competitiveness Advisory Committee, where he was appointed to a two-year term by the U.S. Secretary of Commerce and was then appointed to serve as its vice-chairman. At the State level, he was selected by then-Governor Sonny Perdue to serve as lead consultant on the Commission for New Georgia’s Freight and Logistics Task Force. In this effort, Siplon led a Private Sector Advisory Committee with invited executives from a range of private sector stakeholders including UPS, Coca-Cola, The Home Depot, Delta Airlines, Georgia Pacific, CSX, and Norfolk Southern. Siplon honorably served a combined 12 years in the United States Marine Corps and the United States Air Force. During this time, he led the integration of encryption techniques and deployed cryptographic devices for tactically secure voice and data platforms in critical ground-to-air communication systems. This service included support for all branches of the Department of Defense, multiple federal security agencies, and aiding NASA with multiple Space Shuttle launches. Originally from New York, Siplon received both a bachelor’s and master’s degree in electrical and computer engineering with a focus on digital signal processing from the Georgia Institute of Technology. He earned an associate’s degree in advanced electronic systems from the Air Force College and completed multiple military leadership academies in both the Marines and Air Force. Siplon currently lives in Cumming, Georgia (north of Atlanta), with his wife Jan, and two children Thomas (19) and Lily (15).
Host, Logistics with Purpose
Kristi Porter is VP of Sales and Marketing at Vector Global Logistics, a company that is changing the world through supply chain. In her role, she oversees all marketing efforts and supports the sales team in doing what they do best. In addition to this role, she is the Chief Do-Gooder at Signify, which assists nonprofits and social impact companies through copywriting and marketing strategy consulting. She has almost 20 years of professional experience, and loves every opportunity to help people do more good.
Host, Logistics with Purpose
Kevin Brown is the Director of Business Development for Vector Global Logistics. He has a dedicated interest in Major Account Management, Enterprise Sales, and Corporate Leadership. He offers 25 years of exceptional experience and superior performance in the sales of Logistics, Supply Chain, and Transportation Management. Kevin is a dynamic, high-impact, sales executive and corporate leader who has consistently exceeded corporate goals. He effectively coordinates multiple resources to solution sell large complex opportunities while focusing on corporate level contacts across the enterprise. His specialties include targeting and securing key accounts by analyzing customer’s current business processes and developing solutions to meet their corporate goals. Connect with Kevin on LinkedIn.
Host, Supply Chain Now en Espanol
Sofia Rivas Herrera is a Mexican Industrial Engineer from Tecnologico de Monterrey class 2019. Upon graduation, she earned a scholarship to study MIT’s Graduate Certificate in Logistics and Supply Chain Management and graduated as one of the Top 3 performers of her class in 2020. She also has a multicultural background due to her international academic experiences at Singapore Management University and Kühne Logistics University in Hamburg. Sofia self-identifies as a Supply Chain enthusiast & ambassador sharing her passion for the field in her daily life.
Host, Logistics with Purpose
Jose Manuel Irarrazaval es parte del equipo de Vector Global Logistics Chile. José Manuel es un gerente experimentado con experiencia en finanzas corporativas, fusiones y adquisiciones, financiamiento y reestructuración, inversión directa y financiera, tanto en Chile como en el exterior. José Manuel tiene su MBA de la Universidad de Pennsylvania- The Wharton School. Conéctese con Jose Manuel en LinkedIn.
Host, Supply Chain Now en Espanol
Demo Perez started his career in 1997 in the industry by chance when a relative asked him for help for two just weeks putting together an operation for FedEx Express at the Colon Free Zone, an area where he was never been but accepted the challenge. Worked in all roles possible from a truck driver to currier to a sales representative, helped the brand introduction, market share growth and recognition in the Colon Free Zone, at the end of 1999 had the chance to meet and have a chat with Fred Smith ( FedEx CEO), joined another company in 2018 who took over the FedEx operations as Operations and sales manager, in 2004 accepted the challenge from his company to leave the FedEx operations and business to take over the operation and business of DHL Express, his major competitor and rival so couldn’t say no, by changing completely its operation model in the Free Zone. In 2005 started his first entrepreneurial journey by quitting his job and joining two friends to start a Freight Forwarding company. After 8 months was recruited back by his company LSP with the General Manager role with the challenge of growing the company and make it fully capable warehousing 3PL. By 2009 joined CSCMP and WERC and started his journey of learning and growing his international network and high-level learning. In 2012 for the first time joined a local association ( the Panama Maritime Chamber) and worked in the country’s first Logistics Strategy plan, joined and lead other associations ending as president of the Panama Logistics Council in 2017. By finishing his professional mission at LSP with a company that was 8 times the size it was when accepted the role as GM with so many jobs generated and several young professionals coached, having great financial results, took the decision to move forward and start his own business from scratch by the end of 2019. with a friend and colleague co-founded IPL Group a company that started as a boutique 3PL and now is gearing up for the post-Covid era by moving to the big leagues.
Host, Supply Chain Now
The founder of Logistics Executive Group, Kim Winter delivers 40 years of executive leadership experience spanning Executive Search & Recruitment, Leadership Development, Executive Coaching, Corporate Advisory, Motivational Speaking, Trade Facilitation and across the Supply Chain, Logistics, 3PL, E-commerce, Life Science, Cold Chain, FMCG, Retail, Maritime, Defence, Aviation, Resources, and Industrial sectors. Operating from the company’s global offices, he is a regular contributor of thought leadership to industry and media, is a professional Master of Ceremonies, and is frequently invited to chair international events.
He is a Board member of over a dozen companies throughout APAC, India, and the Middle East, a New Zealand citizen, he holds formal resident status in Australia and the UAE, and is the Australia & New Zealand representative for the UAE Government-owned Jebel Ali Free Zone (JAFZA), the Middle East’s largest Economic Free Zone.
A triathlete and ex-professional rugby player, Kim is a qualified (IECL Sydney) executive coach and the Founder / Chairman of the successful not for profit humanitarian organization, Oasis Africa (www. oasisafrica.org.au), which has provided freedom from poverty through education to over 8000 mainly orphaned children in East Africa’s slums. Kim holds an MBA and BA from Massey & Victoria Universities (NZ).
Host, Logistics with Purpose
Nick Roemer has had a very diverse and extensive career within design and sales over the last 15 years stretching from China, Dubai, Germany, Holland, UK, and the USA. In the last 5 years, Nick has developed a hawk's eye for sustainable tech and the human-centric marketing and sales procedures that come with it. With his far-reaching and strong network within the logistics industry, Nick has been able to open new avenues and routes to market within major industries in the USA and the UAE. Nick lives by the ethos, “Give more than you take." His professional mission is to make the logistics industry leaner, cleaner and greener.
Sales Support Intern
Alex is pursuing a Marketing degree and a Certificate in Legal Studies at the University of Georgia. As a dual citizen of both the US and UK; Alex has studied abroad at University College London and is passionate about travel and international business. Through her coursework at the Terry College of Business, Alex has gained valuable skills in digital marketing, analytics, and professional selling. She joined Supply Chain Now as a Sales Support Intern where she assists the team by prospecting and qualifying new business partners.