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Five key drivers of European logistics market change

Sea ports and urban logistics centres will become more important according to Jones Lang LaSalle

Munich, EXPO REAL, 9th October 2012 – Five drivers are causing rapid change across the European logistics market, according to Paul Betts, Head of EMEA Logistics & Industrial at Jones Lang LaSalle.
These five key drivers are:

  1. World trade growth and larger container ships increase ‘portcentric’ logistics
  2. Growth in multi-channel / internet retail
  3. Sourcing strategies and the location of manufacturing
  4. City growth increases urban logistics centre demand
  5. Demographic change

Commenting on the how the trends impact every angle of the logistics world, Paul Betts, Head of EMEA Logistics & Industrial, Jones Lang LaSalle said:

“We are currently seeing wholesale changes in the world of logistics. Whilst generally positive, these drivers are causing many European end users of logistics real estate to assess their requirements, and consider if their current strategy is fit for the future.”

Expanding on the drivers of change in more detail, Paul Betts added:

“With 90% of global trade handled by sea ports and high trade growth forecast, this will lead to a growth in container traffic and larger container. With bigger ships, some ports are better placed to win the competition for freight. These hub ports will encourage a rise in ‘portcentric’ logistics, including large logistics facilities at ports and intermodal inland ports.

Internet retail continues to grow rapidly. This is generating requirements for logistics properties from internet-only and multi-channel retailers which in turn will increase demand for both large and smaller logistics units.

The rising costs and risks associated with extended global supply chains, are encouraging companies to look at more local suppliers, or at bringing some manufacturing closer to the market it serves. This increases supply chain ‘agility’, and enables companies to respond quickly to volatile demand. This will create more demand for industrial, and associated logistics, facilities in Europe as some manufacturing moves closer to market. 

With nearly three-quarters of Europe’s population living in urban areas, cities remain engines of economic growth. As cities grow we will see increasing demand for logistics facilities in and around cities, including shared user facilities operated by logistics companies.

Demographic growth and ageing, and associated changes in incomes and spending, will have a dramatic impact on global supply chains. For many companies, this will drive significant change in their current logistics networks. Rising populations will generate increasing demand for modern logistics facilities.”

– ends –

Notes to the Editor

Jones Lang LaSalle has 180 Logistics & Industrial specialists in 31 countries across Europe, Middle East and Africa.

Come and speak to Jones Lang LaSalle Logistics experts at the Expo Real launch of IPD´s new Pan-European Logistics Performance Report on Tuesday 9th October – stand C2.220.

Watch Paul Betts' video "Logistics Trends in the European Market".​