Supply chain shifts to drive more manufacturing to Southeast Asia - JLL Diversification of supply chains to create opportunities but will require companies to be flexible on factors including site selection says JLL. The coming years will accelerate shifting supply chains, with manufacturing and production locations diversifying across Southeast Asia. JLL (NYSE: JLL) reports that Southeast Asia and other developing economies in the APAC region stand to be net beneficiaries of this trend. Over the past few years, Chinese companies have begun exploring the expansion of manufacturing outside of China. “In Asia Pacific, this near/re/friend shoring trend has resulted in the China+1 strategy where companies add additional manufacturing bases outside of China to hedge against supply chain disruptions by reducing heavy reliance on a single country,” JLL estimates China holds the lion’s share of manufacturing FDI in the region. However, this dominance is gradually diminishing as Southeast Asian countries and other developing economies in the Asia-Pacific are experiencing faster growth in FDI inflows compared to China. By Yin Hong, Head of Logistics & Industrial, Jll China and Yulia Nikulicheva Head of Research & Consultancy, JLL (Malaysia). Read more on Retalk Asia > https://lnkd.in/gkq6Xmup The INDUSTRIALIST JLL Malaysia (Value & Risk Advisory) Andrew Peck Jamie Tan Anthony Couse Christopher Fossick #jll #jllmalaysia #jllchina #supplychain #logisticsrealestate #industrialrealestate #manufacturing #APAC #china
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So #China +1 has become topical in the #supplychain and #industrial real eatate community. While it is plausible to see more diversification of #manufacturing capabilities away from China to markets like #Malaysia, it is implausible that China will take a backseat in the development of conplementary markets. JLL’s Hong Yin and Yulia Nikulicheva accessibly explain this phenomenon and the implications for #realestate in RETalk Asia. Christophe Vicic; Derek Yap (MSc, BSc); Joey Ng; Michael Ignatiadis; Peter Guevarra
Supply chain shifts to drive more manufacturing to Southeast Asia - JLL Diversification of supply chains to create opportunities but will require companies to be flexible on factors including site selection says JLL. The coming years will accelerate shifting supply chains, with manufacturing and production locations diversifying across Southeast Asia. JLL (NYSE: JLL) reports that Southeast Asia and other developing economies in the APAC region stand to be net beneficiaries of this trend. Over the past few years, Chinese companies have begun exploring the expansion of manufacturing outside of China. “In Asia Pacific, this near/re/friend shoring trend has resulted in the China+1 strategy where companies add additional manufacturing bases outside of China to hedge against supply chain disruptions by reducing heavy reliance on a single country,” JLL estimates China holds the lion’s share of manufacturing FDI in the region. However, this dominance is gradually diminishing as Southeast Asian countries and other developing economies in the Asia-Pacific are experiencing faster growth in FDI inflows compared to China. By Yin Hong, Head of Logistics & Industrial, Jll China and Yulia Nikulicheva Head of Research & Consultancy, JLL (Malaysia). Read more on Retalk Asia > https://lnkd.in/gkq6Xmup The INDUSTRIALIST JLL Malaysia (Value & Risk Advisory) Andrew Peck Jamie Tan Anthony Couse Christopher Fossick #jll #jllmalaysia #jllchina #supplychain #logisticsrealestate #industrialrealestate #manufacturing #APAC #china
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The coming years will accelerate shifting supply chains, with manufacturing and production locations diversifying across Southeast Asia. JLL reports that Southeast Asia and other developing economies in the APAC region stand to be net beneficiaries of this trend. Over the past few years, Chinese companies have begun exploring the expansion of manufacturing outside of China. “In Asia Pacific, this near/re/friend shoring trend has resulted in the China+1 strategy where companies add additional manufacturing bases outside of China to hedge against supply chain disruptions by reducing heavy reliance on a single country,” said Hong Yin, Head of Logistics & Industrial, JLL China. Yulia Nikulicheva https://lnkd.in/gh7UWduk #JLL #Insights #PropertyNews
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India Head - Operations, Business Development, Industrial Consulting & Integrated Logistics, L&I, JLL
Beyond #China: #Asia's next manufacturing powerhouse. Check out JLL latest #research on #manufacturing update, #hotspots and #investment snapshots of #India #Indonesia #Malaysia #Phillipines #Singapore #Thailand & #Vietnam Michael Ignatiadis Peter Guevarra Trang Le JLL India #logistics #InvestinIndia
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Real estate investors with an appetite for manufacturing are shifting their focus to India and South East Asia, capitalising on the strong economic fundamentals of the region.
Southeast Asia & India emerging manufacturing centres - JLL According to JLL, manufacturing is shifting from China to Southeast Asia and India due to rising costs and the need for supply chain diversification. Southeast Asia and India are benefiting from increased foreign direct investment (FDI) by China+1 strategy, with significant growth in countries like Indonesia and Vietnam. We see Southeast Asia and India representing a natural complement to the existing production strength of China but feel that for companies to respond quickly to supply chain shifts, they need to adopt a flexible mindset towards land selection and funding options,” says Michael Ignatiadis Head of Manufacturing Strategy, Asia Pacific, JLL. The driving force behind this trend is not only the need for supply chain diversification, but also to capitalise on the strong economic fundamentals of this region, including a large population and labour pool, favourable costs, and various incentives. From a manufacturing investment perspective, these factors position SEA and India as major manufacturing hubs for global markets. Each economy in Southeast Asia is at a different level of its manufacturing story, but we can confidently say that policymakers are extremely keen to rake advantage of diversification initiatives of supply chains. Companies need to carefully evaluate various factors such as costs, market access, infrastructure, labour, and governmental support before determining their global manufacturing investment strategies,” says Peter Guevarra Director, Research Consultancy, Asia Pacific, JLL. Read more published on Retalk Asia linked below: The INDUSTRIALIST The ASEAN Developer Peter Blade (JP) Andrew Peck COMMO #supplychain #logisticsrealestate #manufacturing #industrialrealestate #industrialproperty #industrialdevelopment #industrialleasing #jll https://lnkd.in/g9H5UA_J
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RESEARCH: The next decade will accelerate shifting supply chains whereby manufacturing and production will diversify to multiple locations across Thailand, Southeast Asia and India. According to JLL, markets like Thailand stand to be net beneficiaries of companies diversifying manufacturing capabilities to complement existing bases in China, but companies will need to be flexible when considering locations and funding options to take advantage of volatility in supply chains.
Thailand to benefit from supply chain and manufacturing shifts
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Southeast Asia & India emerging manufacturing centres - JLL According to JLL, manufacturing is shifting from China to Southeast Asia and India due to rising costs and the need for supply chain diversification. Southeast Asia and India are benefiting from increased foreign direct investment (FDI) by China+1 strategy, with significant growth in countries like Indonesia and Vietnam. We see Southeast Asia and India representing a natural complement to the existing production strength of China but feel that for companies to respond quickly to supply chain shifts, they need to adopt a flexible mindset towards land selection and funding options,” says Michael Ignatiadis Head of Manufacturing Strategy, Asia Pacific, JLL. The driving force behind this trend is not only the need for supply chain diversification, but also to capitalise on the strong economic fundamentals of this region, including a large population and labour pool, favourable costs, and various incentives. From a manufacturing investment perspective, these factors position SEA and India as major manufacturing hubs for global markets. Each economy in Southeast Asia is at a different level of its manufacturing story, but we can confidently say that policymakers are extremely keen to rake advantage of diversification initiatives of supply chains. Companies need to carefully evaluate various factors such as costs, market access, infrastructure, labour, and governmental support before determining their global manufacturing investment strategies,” says Peter Guevarra Director, Research Consultancy, Asia Pacific, JLL. Read more published on Retalk Asia linked below: The INDUSTRIALIST The ASEAN Developer Peter Blade (JP) Andrew Peck COMMO #supplychain #logisticsrealestate #manufacturing #industrialrealestate #industrialproperty #industrialdevelopment #industrialleasing #jll https://lnkd.in/g9H5UA_J
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Read our latest report on the industrial market! In 2Q 2024, Singapore’s economy performed better than expected. The manufacturing sector expanded by 0.5% year-on-year, reversing the previous quarter's negative YoY growth. This improvement supported demand for industrial space in 2Q 2024. Demand for industrial space surged by 258,000 sq m, with the price index climbing 1.2%, driven by a 1.7% price increase in the multi-user segment. This is the strongest quarterly growth since 1Q 2023. Transactions of multi-user factories jumped to 516, up 42.1% from the previous quarter, with many purchases ranging between $1.0 million and $1.5 million. The Singapore Purchasing Managers’ Index expanded in 2Q 2024, led by the electronics cluster, which is expected to drive manufacturing recovery in 2H 2024. If there is a cut in interest rate in the second half of 2024, the strata industrial market may get a boost in demand as the net return on investment will improve. Industrial space prices and rents may grow by 3% to 5% this year. Download now: https://lnkd.in/gKbXg4UH Speak to your preferred Huttons Associates to get an in-depth analysis and understand the opportunities in the industrial market for you. #HuttonsGroup #FastestGrowingAgency #SingaporeLargestPrivateRealEstateAgency #QuarterlyReport #MarketUpdate #IndustrialReport #HuttonsDataAnalytics #BigData
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Thailand benefits from supply chain and manufacturing shifts- JLL Thailand has emerged as a prime investment destination in the supply chain reformation from China with substantial investment across key industrial clusters over the next decade, said Michael Glancy, Country Head of JLL Thailand. The next decade will accelerate shifting supply chains whereby manufacturing and production locations will diversify to multiple locations across Thailand, Southeast Asia and India. Read more published on RETalk Asia: https://lnkd.in/dCCZEY4U The ASEAN Developer COMMO JLL JLL Thailand Michael Glancy Krit Pimhataivoot Michael Ignatiadis Andrew Peck The INDUSTRIALIST Subyagorn Sansugtaweesub Kyle Stuart Nathapak Pisuttinusart Anawin Chiamprasert #JLL #JLLThailand #Thailand #ThailandInvestment #ThailandIndustrial #ChinaPlusOne #commercialrealestate #supplychains #industrialrealestate #capitalmarkets #FDI #SEA #supplychain #logisticsrealestate #logistics #industrialleasing #jllindustrial #manufactoring
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Thailand is attracting significant investments in its industrial clusters, making it a prime destination for companies looking to diversify their manufacturing and production locations. In the next decade, we can expect to see a shift towards multiple locations across Thailand, Southeast Asia, and India, as companies seek to optimize their supply chains. At JLL, we understand the importance of adapting your supply chain strategy to stay ahead and are currently assisting a number of clients with Market Entry Strategy into Thailand. If you need any further information please feel free to reach out to myself or any of my colleagues Krit Pimhataivoot Subyagorn Sansugtaweesub Chakrin Charoenchit Jarunat Sachaphondeth Yuwadee (Sherry) Sahapornpitakkul Thananun (Tony) Ruengveeravich Michael Glancy Anawin Chiamprasert Kiert Vitoonwithluck Witchaya Wipusanawan #JLL #Industrial #manufacturing #supplychain
Thailand benefits from supply chain and manufacturing shifts- JLL Thailand has emerged as a prime investment destination in the supply chain reformation from China with substantial investment across key industrial clusters over the next decade, said Michael Glancy, Country Head of JLL Thailand. The next decade will accelerate shifting supply chains whereby manufacturing and production locations will diversify to multiple locations across Thailand, Southeast Asia and India. Read more published on RETalk Asia: https://lnkd.in/dCCZEY4U The ASEAN Developer COMMO JLL JLL Thailand Michael Glancy Krit Pimhataivoot Michael Ignatiadis Andrew Peck The INDUSTRIALIST Subyagorn Sansugtaweesub Kyle Stuart Nathapak Pisuttinusart Anawin Chiamprasert #JLL #JLLThailand #Thailand #ThailandInvestment #ThailandIndustrial #ChinaPlusOne #commercialrealestate #supplychains #industrialrealestate #capitalmarkets #FDI #SEA #supplychain #logisticsrealestate #logistics #industrialleasing #jllindustrial #manufactoring
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Diversifying global supply chains is now a strategic priority, with Southeast Asia emerging as a key region of opportunity. McKinsey’s latest insights explore how businesses can leverage the region's growing infrastructure, skilled workforce, and competitive costs to build more resilient supply chains. By diversifying into Southeast Asia, companies can mitigate risks, enhance operational efficiency, and tap into new growth markets. Diversifying global supply chains is now a strategic priority, with Southeast Asia emerging as a key region of opportunity. McKinsey’s latest insights explore how businesses can leverage the region's growing infrastructure, skilled workforce, and competitive costs to build more resilient supply chains. By diversifying into Southeast Asia, companies can mitigate risks, enhance operational efficiency, and tap into new growth markets. #GlobalSupplyChains #SoutheastAsiaOpportunity #DiversifySupplyChains #ResilientSupplyChains Read on: https://ow.ly/SwnG50Tsv6J
Diversifying global supply chains: Opportunities in Southeast Asia
mckinsey.com
