Drivers
- As e-commerce continues to soar and many companies are bulk-buying and over-manufacturing to have enough inventory on hand, warehouse space cannot keep up with demand, therefore producing very low vacancy rates in the Quad Cities region for these types of buildings. This challenge is driving some local developers to announce the construction of warehouse/distribution/light manufacturing space.
- While the US freight rail network has always moved items such as heavy equipment and large quantities of resources like coal and grain, it is now starting to be used more for consumer goods with the rise of e-commerce companies. According to the Association of American Railroads, one-third of all US exports and 40% of long-distance freight is moved via trains. Three of the seven major freight railroads move through the Quad Cities region—Union Pacific, BNSF and Canadian Pacific—and are important to both existing companies and companies looking to locate in the region. Iowa Interstate Railroad is the short line railroad in the region that connects to the three Class 1 rail lines.
Drawbacks
- Supply chain disruption continues; however, even more concerning is the surge in cargo freight rates. Local companies have indicated that shipping container rates have tripled and sometimes even quadrupled in the last 18 months.
