Our Take: Not a Boom, But a Return to Normalcy
While we welcome the activity in the market, we recommend taking the “tariff confidence” narrative with a grain of salt. Attributing this surge entirely to clarity on tariff policy feels like a stretch, especially given that recent legal decisions suggest the future of those tariffs is far from set in stone.
From our perspective, what we are seeing isn’t necessarily a policy-driven surge, but a return to the mean. We are coming out of a period of historically low warehouse construction starts—a natural correction following the massive overbuild during the COVID era. The market bottomed out, and now it’s bouncing back.
It’s less about a sudden love affair with tariff policy and more about the natural, cyclical stabilization of construction and capacity. For supply chain leaders, the takeaway is simple: capacity is opening up, but don’t let macro-economic headlines distract you from the fundamental supply and demand mechanics at play.
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The consultants at LIDD work with organizations across the supply chain to build more efficient, sustainable, and resilient operations. If you’re looking to turn your business into a powerhouse of operational excellence, reach out today.
