Process, Distribution & Logistics Consulting NAICS 541614

Sep 29, 2025 - Energy Reliability a Top Concern Among Supply Chain Execs

• A majority of senior supply chain executives say energy reliability is a top concern for warehouse operations, according to an annual survey by industrial REIT Prologis. About 89% of executives say they experienced an energy-related disruption in the past year, from price swings to weather-driven outages, Another 70% said they fear outages more than any other hurdle. Going forward, 76% of supply chain execs expect power requirements to rise 10-50% over the next five years due to AI adoption and data center construction. Respondent concern was palpable: 83% worry energy procurement could reach emergency levels, so much so that 90% said they would pay a premium for warehouses with dependable power. The survey also highlighted broader supply chain shifts: 77% are moving toward self-sufficient regional networks, and 70% have implemented advanced AI technologies. Energy reliability, AI, and strategic location were the essential focuses for supply chain companies, per the survey.
• New orders for US manufactured goods rose 8.2% in May 2025 from the previous month, according to the US Census Bureau. The $642 billion of new orders is a reprieve that could be brief if the Trump administration’s massive tariff plans are ever fully implemented. Shipments of manufactured goods barely moved in May after two consecutive months of declines, pulling in $599 billion - a 0.1% increase over April. Both figures can be used as proxies for the overall demand of the manufacturing sector and new orders and shipments for goods usually spike in mid-year ahead of the holidays, although there are many questions this year due to tariff policy. Manufacturing logistics consulting firms stand to be in high demand in late 2025 with the US government engaging in a high-profile worldwide trade war that could spark inflation.

• Large US businesses have an increasingly pessimistic outlook on their financial fortunes for the rest of 2025, with 60% of executives saying they expect their companies’ performance to be flat or even shrink during the year, according to a recent report from Sentry Insurance. The survey of more than 1,000 C-level US executives found that 82% of large business leaders were more stressed than last year, 15% higher than small businesses. Almost half of respondents, 45%, cite supply chain problems brought on by tariffs as their biggest concern, followed by economic uncertainty (39%) and inflation (34%). To counter, large businesses have responded by cutting logistics and transportation staff, asking current employees to work longer hours, and delaying infrastructure improvements until costs are more manageable.
• While the raw materials shortages that posed headwinds for manufacturers during the pandemic are just a bad memory for some, challenges remain, according to Supply Chain Management Review. The growth of data centers and electricity generation capacity needed to power AI has given rise to shortages of some types of electrical and electronic components. Industrial production of electrical equipment used to generate and distribute electricity is now 25% higher than in 2017. The proportion of US computer and electronic products manufacturers that cite raw materials as an impediment to capacity utilization has been rising since the end of 2023, according to US Census data. Manufacturing sector observers are likely to follow any fluctuations in factory capacity utilization closely. Rises in capacity utilization would likely indicate stronger demand but might also signal future raw material shortages, especially among industries already experiencing procurement delays.