NEWSWORTHY

STEADY GROWTH IN ONLINE GROCERY SHOPPING WAS ALREADYdriving demand for cold storage nationwide, but the Covid- 19 pandemic willaccelerate that trend and contribute to even greater demand over the next fiveyears, according to a report from commercial real estate giant CBRE.

CBRE estimates that an additional 75 million to 100 million square feet
of industrial freezer/cooler space will be needed to meet demand generated
by online grocery sales by 2025. Researchers add that the trend will have
five long-term effects on the
market:
b E-commerce grocery will
see wider adoption as con-
sumers grow more comfort-
able with the practice. This
will further boost demand
for cold storage capacity.
b Public refrigerated ware-
house companies will like-
ly consolidate to gain more
control of the cold storage
footprint.
b Since e-commerce orders
are typically fulfilled by local
grocery stores, retail foot-
prints will include more stor-
age and fulfillment space.
b Restaurants may see a
shift in dining formats with fewer dine-in options and more delivery or take-
out that would require cold storage capacity.

b Automation will increase, prompting higher-density, greater-height,and smaller-footprint build-outs that will be required for around-the-clockoperations.

“Until recently, consumers were not ordering a lot of perishables online,but that will likely change in a post-Covid- 19 environment,” MatthewWalaszek, associate director of industrial and logistics research for CBRE,said in a statement. “Now, we are seeing consumers trend toward buyingfoods online such as frozen meats and poultry. To meet this new demand, wewill need more temperature-controlled space.” n

Trucking industry leaders will takepart in the Trump administration’seffort to chart the country’s economic rebound from the Covid- 19pandemic, industry group executives said in mid-April.

The American TruckingAssociations (ATA) said its president and CEO, Chris Spear, willtake part in the administration’sGreat American Economic Revivalinitiative, which is conveningbipartisan groups of industryleaders from across all sectors ofthe U.S. economy to address thecountry’s economic recovery frompandemic-related shutdowns.

Other ATA members represented in the group include: FrederickW. Smith, chairman and CEO ofFedEx Corp.; David P. Abney,outgoing chairman and CEO ofUPS Inc.; John Roberts, presidentand CEO of J.B. Hunt TransportServices Inc.; and Darren Hawkins,CEO of YRC Worldwide Inc.

“I am honored to serve ourpresident and the nation in thiscapacity, representing the trucking industry and joining four ATAmember company CEOs, to bridgethis crisis to a safe, speedy, and fullrecovery,” Spear said in a statement. “Just as they have duringthe mitigation and responseefforts, truckers will be at theforefront as we revive our economy’s engine and get our countrymoving again. No industry will bemore vital, and we embrace theopportunity to play a leading rolein this national effort.” n