Cushman & Wakefield Industrial Indicators - April 2012

1. NORT AM CA
TH MERIC
INDUSTR
RIAL IN
NDICAT
TORS
…IN 7 MIN
NUTES AP
PRIL 2012
2
CUSHMAN & WAKEFIELD’S SEVEN-MINUTE
W S E • Gra Alliance carr
and riers NYK Line, Hapag-Lloyd an Orient
nd
OVERVIEW OF INDUSTRIAL ACTIVITY AND D Oveerseas Containe Line are leavin the Port of Se
er ng eattle and
TRENDS WAS DESIGNED FO TODAY’S
S OR mov to the Was
ving shington United Terminals in Taacoma. This
BUSY REAL ES
STATE PROFESSSIONAL; THIS sho
ould reverse Taccoma’s recent doownward trend in container
OVERVIEW PRROVIDES READDERS A volu
ume resulting fro Maersk vaca
om ating the port in 2010.
COMPREHENS SIVE LOOK AT KEY MARKET • The Port of Long B
e Beach welcomed the largest container ship ever
d
ERS, LEADING INDICATORS, AND STATISTICS IN A QUICK
DRIVE A K to c to North Am
call merica, the MSC Fabiola. The ve
C essel, measuring
TIBLE FORMAT.
AND EASILY DIGEST 1,20 feet in length is the largest c
00 h, container vessel now serving
The gl lobal economy is expected to st off slowly in 2012, as debt
tart U.S
S.-Asia trade, and is capable of ca
d arrying more tha 12,000
an
resoluution issues rema a concern, an strengthen during the second
ain nd d conntainer units. The Port of Long BBeach is investin $4.5 billion
ng
half as underlying economic fundamen
s ntals improve. Overall, the U.S.
O ove the next deca to modernize its facilities.
er ade e
will ex
xperience modest growth during 2012 as uncert
g tainty about debbt • Cannadian National Railway will exp
pand its service t the growing
to
reduct tion and the elec
ctions keeps bus
sinesses and inve
estors cautious. Por of Prince Rupe by adding a c
rt ert container train c
connection to
Howe ever, with record corporate pro and improving consumer
d ofits Edmmonton in June. The new connection, which will also bring
deman the U.S. appe poised for growth to accele
nd, ears g erate in the add service to Calgary, comes as Alberta emerg as one of the
ded s ges
second half of the yea Canada and Mexico are also expected to
d ar. M e fast
test growing indu
ustrial and consumer based eco onomies in North
contin to expand at generally stron
nue t nger rates than in 2011, but
n Ammerica.
growt will be modes with demand from the U.S. re
th st f emaining slow. • Inveestors are lookin to take advan
ng ntage of growing population
g
cennters and evolvin trade routes. One such exam is the new
ng mple
“Ammerica’s Gatewa Logistics Cent
ay ter” in Moore HHaven, FL., the
NORT AMERICA – GDP GROW
TH WTH larg ogistics center in Florida, boasting access to fou
gest integrated lo n ur
6.0%
% sea ports, major ra carriers, and m
ail major air cargo ooperations.
• Catterpillar Inc. has closed a locomootive plant in Lo
ondon Ontario.
5.0%
%
The work will be re
e elocated to the company’s othe assembly
er
4.0%
% plan in North and South America
nts d a.
3.0%
% MANU
UFACTURING INVESTMEN RISING
G NTS
• Cat
terpillar broke g ground on a new $200 million fa
w acility near
2.0%
%
hens, Georgia. T site borders Athens-Clarke a Oconee
Ath The and
1.0%
% cou
unties. Company officials say its new plant is cre
y eating 1,400 jobs
s.
2010 201
11 2012F
2 Cat
terpillar will star producing and selling its const
rt d truction and
U.S. Canada
a Mexico min equipment a its new facility by late 2013.
ning at y
• Cat
terpillar Inc. also plans to expand its hydraulic fa
o acility in
Summter’s Black Rive Airport Indus
er strial Park. The $ million
$20
MARK DRIVERS/
KET /INFRASTRUC
CTURES inve
estment is expec more than 80 new jobs over two
cted to create m w o
• Driiven by sharply lower freight rat especially on the Asia-
l tes, n yea rs. Caterpillar’s expansion will n
nearly triple the facility’s
Eurrope route, and a 35%t increase in fuel costs, Maersk Line will
e M foottprint.
rem in the red this year, slumping to a $602 million loss in 2011
main t
• The Linamar Corp.., which has plan and facilities in 11 countries,
e nts
afte a record $2.6 billion profit in 2010.
er 6
receently offered a s
sneak preview o its new North Carolina facility
of y.
• Coonstruction of buuildings and infra
astructure at the Vancouver
e The 400,000-sf plan will employ m
e nt more than 250 w workers and will
Shipyards and Victo Shipyards is expected to be in 2012 as a
oria s egin star turning out en
rt ngine block and wheel parts for heavy
res of the $8-billion Seaspan Ma
sult arine Corp. conttract won last fal
ll. connstruction equipmment by early M
May.
Sev new non-com
ven mbat ships will be built, with wo on the first
b ork
• Acc
cording to a rece report by Accenture, some 61% of
ent
ship to begin in 2013.
p
man
nufacturing execcutives surveyed by the consulta
d ancy said they
wer considering m
re more closely mat tching supply loc
cation with
dem
mand location by re-shoring man
y nufacturing and supply.

2. UNIT
TED STATES CANA
ADA
• U.S containerized imports rose 4.1% in January ye
S. ear-over-year, to
o • Cannada’s trade surp narrowed f
plus from $2.9 billion CAD in
n
1.5 million TEUs, driven by growth in furniture and auto parts
d h d Dec cember to $2.1 billion in January 2012. This represented the
y
ship
pments. It was the third straight month of year-
t t -over-year gains. thir consecutive m
rd month of trade s surplus.
Thi data reflects the continued re
is ecovery in auto sales and the
s • Elev
vated oil prices c
continue to fuel mega projects a attached to oil
rec
cent improvement in housing sal which are tie closely to
les, ed sand initiatives, and this is leading to the rise of sig
ds gnificant
furniture imports. Sales of existing homes have risen in three of
S spe culative develop
pment within Ca algary’s industria markets – with
al h
the last four month
e hs. ove 3 million squa feet slated to rise in 2012 an 2013.
er are o nd
• The U.S. trade defi rose to a thr
e icit ree-year high of $52.6 billion in • Cannadian ports saw increased or le cargo volum in 2011 with
w evel mes h
January as a 2.1% ju ump in imports outpaced a 1.4% rise in exports
% s. seve ports recor
eral rding record leve activity. Port Metro
el
It is the largest deficit since October 2008, as impo totaled
s orts Van
ncouver saw an a all-time record o activity and M
of Montreal saw
$23 33.4 billion again $180.8 billion in export.
nst n douuble-digit growth
h.
• U.S manufacturing technology orde in January ro 8.4% year-
S ers ose • Bot New Brunswiick and Nova Scotia should see some pick-up in
th n
ove
er-year. The stro technology manufacturing re
ong eport reinforces
s eng
gineering and connstruction activi as Irving Ship
ity pbuilding Inc.
the steady surge of expansion seen in overall facto production.
e f n ory gea rs up to produc 20 large comb vessels under the shipbuildin
ce bat ng
U.S manufacturing production has expanded 30 st
S. traight months con
ntract.
thr
rough January.
• Chr rysler Canada sa one of the st
aw trongest January in history and
ys
• As domestic manuf
facturing expand and powers a U.S. economic
ds too first place in v
ok vehicle sales for only the second time in its
d
rec
covery, total U.S intermodal vol
S. lume hauled by major U.S.
m hist
tory.
railroads expanded 2.4% in Februa year-over-yea Intermodal
d ary ar.
• In Ja
anuary (the mos recent data av
st vailable), motor vehicle sales
traf was up for th 27th straight month.
ffic he
ros e 2.6% to $4.5 bbillion, the seven consecutive month of sales
nth
• Ret sales exceeded expectations rising 4.1% in March. This
tail s, M incrreases. Willingne to make “big ticket” purchas reflects
ess g ses
follows gains of 1.1% in February and 0.6% in Janua Sales were
a ary. grow consumer confidence.
owing
buooyed by a 1.6% rise in sales of motor vehicles, reflecting pent-up
r m r p
• Althhough employment was unchang in February, the number of
ged ,
demmand and growing confidence as job creation sp
s peeds up.
wor rkers declined, p
pushing the unem
mployment rate down by 0.2
• Tra volume at th nation’s two top ports (Ports of Los Angeles
ade he t s perrcentage points t 7.4%. Retail a wholesale trade,
to and
&LLong Beach) declined by 0.7% yeear-over-year, de
espite the fact tran
nsportation and warehousing sa declines, offse by gains in
aw et
tha total TEUs acr
at ross the nation’s ten biggest por has grown by
s rts y area such as financ insurance, re estate, and leasing.
as ce, eal
0.8%.
MEXIC
CO
• The recent slower activity at the So Cal ports has been partly due
e S e • Mexxican industrial p
production acceelerated in Janua (the most
ary
to t fact that India and Singapore are becoming major shipping
the e rece data availablle), driven by sig
ent gnificant gains in manufacturing
hub and routes th
bs, here favor the East Coast. Cons sequently, trade and construction, le
d ending support f upward revis
for sions to the
volume at the Port of New York/N Jersey has risen 4.0% while
t New r e cou
untry's economic growth forecasts. Output clim
c mbed 4.2% from
Sav
vannah has seen a 4.2% annual inncrease. the year earlier and 0.8% from Dec
d cember.
• The U.S. industrial market has clea transitioned into recovery in
e arly n • Mannufacturing industry led the grow in industrial output,
wth
201 and demand accelerated significantly as mark fundamentals
11 a ket s panding 5.6% fro a year earlier, followed by construction,
exp om
con
ntinue to fall mo in-line with le
ore evels seen prior to the
r with 4.8% growth w
h while mining fell 1.3%.
rec
cession.
• Mexxico’s gross dom
mestic product is expected to ex
s xpand 3.5% in
Wi improved lea
ith ancy, the national
asing velocity and gains in occupa
d 201 2, down from 33.9% in 2011 as E
Europe’s debt cr weighs on
risis
ove
erall vacancy rate declined to 100.0% at year-end 2011, an 80-
d glob demand.
bal
bas point (bp) dec
sis crease from last year.
t
• Mex xico has reached an agreement with Brazil to im
d mpose an export
t
quo on its auto sa to Brazil ov a three-year period. The
ota ales ver
U.S. TRADE VOLU
UME valu of Mexican ca exports to Br
ue ar razil jumped around 70% in
201 1, contributing to a glut of chea
aper imports tha are hurting
at
$2.0
Braazil's automakers
s.
Chained US-$ in Trillions
$1.5 • Mex xico’s potential real estate indus strial developme has
ent
$1.0 sub
bstantial upside; t expansion o manufacturing industries and
the of
(2005)
robbust growth in loogistics operatio continue. Sup is coming at
ons pply t
$0.7764
$1.4399
$0.8426
$1.5993
$0.9061
$1.7080
$0.9915
$1.8091
$1.0881
$1.8561
$1.1570
$1.7848
$1.0186
$1.5060
$1.1649
$1.7293
$1.2526
$1.8287
$0.5 attr
ractive prices an d it is likely to f
further diversify in order to
mat a more soph
tch histicated deman nd.
$
$
$0.0
2003 20
004 2005 2006 2007 2008 20
009 2010 2011
GOO EXPORTS
OD GOOD IMPO
ORTS
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man W For more informat
F tion, please contac
ct:
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mericas Tina Arambulo
T
New YYork, NY 10104-6
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3 a.arambulo@cush hwake.com)
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