A Prologis and The Harris Poll survey, conducted in August this year with more than 1,800 global executives for a 2027 industry forecast, finds that reliable energy supply and delivery speed have become primary factors in selecting logistics sites, displacing traditional cost‑based considerations.
Key findings
- Power supply security has become the top criterion for choosing logistics locations, ahead of transport links, automation and rental costs.
- Two‑thirds of executives say energy costs are a significant operational burden, and 95% treat reliable energy infrastructure as a prerequisite when signing lease agreements.
- While 58% of companies now have comprehensive backup systems — a 12 percentage‑point increase in one year — only 23% have achieved full on‑site energy independence. Demand for warehouses with stable power far exceeds market supply.
Supply‑chain reconfiguration and geopolitics
Geopolitical tensions, including rising tariffs and conflicts affecting shipping routes, are prompting companies to restructure global networks. The share of firms that left their international presence unchanged fell by 15 percentage points in one year, to 36%. Decision makers are pursuing supplier diversification, regionalization and reshoring production closer to domestic or nearby markets.
Ninety‑three percent of respondents agree that by 2030 agility and flexibility will be a more important competitive advantage than scale or cost efficiency. Building local networks also introduces new challenges: two‑thirds of companies face strict local regulations, chiefly around emissions standards.
Artificial intelligence: advantage and use cases
AI is drawing a clear line between market players:
- Two‑thirds of respondents say AI already provides them with a meaningful competitive advantage.
- Nearly 10% use the technology explicitly to capture market share from larger rivals.
- Top AI investment areas are demand‑forecasting algorithms (43%) and agent‑based execution systems capable of autonomous decision‑making (39%).
Wider AI deployment is hindered by integration into legacy IT systems (27%), cybersecurity risks (26%) and high upfront costs (23%).
Consumer expectations and last‑mile logistics
Delivery speed has become the main differentiator for consumers: 39% of executives name it as the most important factor, compared with 18% who prioritize pricing. The proportion of companies offering same‑day or next‑day delivery rose from 24% to 58% over seven years, and 91% of respondents say these services are now basic consumer expectations.
Nevertheless, 84% of decision makers acknowledge a gap between retailers’ promises and warehouses’ actual performance. To close that gap, 92% of companies are investing in last‑mile delivery improvements and 91% are pushing to establish decentralized logistics hubs closer to customers.
Implications for the market
The survey indicates that future logistics choices will be driven mainly by energy security and the ability to meet rapid delivery expectations. This trend is reshaping demand in the real estate market — especially for warehouses with reliable power — and is creating new investment, technology and regulatory challenges for industry participants.
(Note: an AI assistant helped prepare this article; the final content was edited and verified by our journalist.)
