Process, Distribution & Logistics Consulting NAICS 541614

Mar 30, 2026 - Cold-Storage Warehouses Hit Record Vacancy Rate

• The US cold-storage warehouse market is experiencing its highest vacancy rate in two decades, reaching 6.9% in Q4 2025 according to Newmark, more than double what it was five years ago. A pandemic-era surge in demand for refrigerated space prompted a construction boom, but that demand has since faded as food producers and retailers worked through excess inventory while grappling with high interest rates and trade disruption. The result is a mismatch between supply and demand that hurt even the industry's biggest players: Lineage, the world's largest cold-storage operator, has seen its stock fall 55% since its record-breaking 2024 IPO, while both Lineage and Americold reported declining revenues in Q4. Industry insiders expect many newer operators to fail, though a projected slowdown in new construction - from 10.4 million square feet delivered in 2025 down to around 4 million this year - offers some hope for a gradual recovery.
• Supply Chain Dive highlights five key supply chain trends shaping 2026, centered on persistent uncertainty, cost pressures, and strategic shifts. Geopolitical fragmentation - especially expansive US tariff policies - continues to complicate global trade, prompting firms to diversify and regionalize sourcing, and logistics networks. Economic softness and rising costs are driving intense cost-optimization efforts across manufacturing, distribution, and transportation. After heavy AI investment with mixed short-term returns, companies are recalibrating expectations while scaling technology for planning and forecasting. Workforce challenges - from labor shortages to skills gaps tied to automation and analytics - pose strategic constraints alongside tech deployment. These forces collectively underscore a supply chain environment where visibility, agility, and diversified risk management are critical for logistics strategy and network design.

• The US oil and gas industry is feeling the ripple effects of tariffs in ways that go beyond price tags, particularly in logistics and distribution. While crude oil and refined products aren’t directly hit, tariffs on steel, aluminum, and critical components are driving up costs for pipelines, drilling rigs, processing facilities, and other infrastructure. These higher material costs are slowing project timelines, especially in offshore and midstream operations, where steel and specialized equipment are essential. Supply chains are under strain as vital parts become more expensive or harder to source. Companies are responding by renegotiating contracts, delaying new investments, or reshuffling logistics strategies. Transportation and distribution networks are also affected, as rising costs cascade through shipping and storage. Tariffs are forcing the industry to rethink everything from procurement to project execution due to added uncertainty and complexity to already delicate supply chains.
• 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.