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Econometric Advisors' blog

Pandemic May Bring Lasting Shifts in Industrial Sector

Jun 26, 2020, 10:02 AM by Ibrahiim Bayaan

The industrial sector will not escape the current recession unscathed, but it will experience a quick recovery and an improved outlook in outer years. Early signs from the manufacturing and retail sector show that activity has plummeted in the aftermath of the pandemic, with industrial production and retail sales both experiencing historic declines in March and April.  

As a result, the industrial sector is likely to be negatively affected over the next few quarters, both on the demand and supply side. CBRE EA expects to see a modest rise in availability over the next few quarters, with a peak in Q1 2021 and steady improvement following throughout the remainder of 2021 and 2022.

Shifts somewhat attributed to the pandemic, such as an increase in e-commerce, carry some positive implications for industrial demand, even once the pandemic subsides.

To read a more detailed viewpoint of the industrial trends forecast, visit the report linked below.


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