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According to the logistics expert, the effects of the supply chain from the forest fires in South California were minimal. However, several experts found that challenges could come later as soon as people begin to rebuild infrastructures and houses.
The forest fires in Southern California deleted several parts of the city, closed streets and highways and increased the lives of many residents in Altadena, Lake Hughes, Pacific Palisades and San Diego County.
The fires were not contained 100%, according to a department for forestry and fire protection cards in California updated on January 27th. However, progress is made because the Eaton fire is 99% containment, while the Hughes fire is 98% containment. Hectar from all four active fires affected, according to Cal Fire Map, 54,519.
Warehouses avoided direct effects
The forest fires had little or no influence on the warehouses, since most of them showed outside the fire brigade, Lisa Anderson, President of the LMA Consulting Group, told Supply Chain Dive in an interview. Nevertheless, there are short -term challenges for some companies.
“Even business outside of the fire areas have wave effects from power failures, infrastructure loads and shift in consumer demand,” said Anderson.
Anderson said she had a customer who delivers construction products. The customer's production facility was supplied without electricity for about a week due to preventive switching off, although its area was not on the way of the fires.
There are several warehouse and logistics centers in Southern California, but most of them are in Germany -Reich, said Anderson. Some places where the domestic empire exists are Riverside, Upland, Fontana and San Bernardino.
A logistics provider, the DHL delivery chain, said Supply Chain in an e -mail that he had no direct effects of the fires.
“The DHL delivery chain operates 13 locations in the region and has no direct effects on our employees or facilities from the latest fires. Our teams continue to monitor the situation and are ready to support every shift in our customers' supply chains to ensure their business continuity, ”said the company.
Even without direct storage effects of camps, Anderson said that the offer chains are disturbed by the relocation of consumer demand.
For example, a business in a region that was destroyed by the fires would have burned down. As a result, residents from this special shop can shop in other areas to have lost essential objects in the fire, added them and changed the purchase patterns and the inventory needs on the way.
The reconstruction of efforts to trigger the offer and the storage requirement
Although there is no clear schedule for the reconstruction of efforts in affected areas, CBRE experts said that short-term storage according to buildings and manufacturers from household providers would probably jump.
It will take some time for a reconstruction to actually begin, said Robert Peddicord, Managing Director of Executive Managing at CBRE's South Bay Operations.
“Most municipalities talk about the construction that does not begin two to three years because the infrastructure obviously has to be rebuilt first. First you have to remove the entire waste, and then the infrastructure must be rebuilt. [The] Time frame that is currently appearing [is] Two to three years before the start of a building, ”said Peddicord.
The objects that could be confronted with deficiency in the context of reconstruction include materials such as drywall, cupboards, sanitary and roof supervision, said Peddicord.
As soon as the materials are available and come to Los Angeles, it will be necessary for the considerable amount of inventory for infrastructure and houses, John Morris, a higher demand for storage space President of Americas Industrial & Logistics at CBRE said in an interview.
“Some of them may be a large storage of the class, such as the types of facilities used to send e-commerce, etc. But I think most of it will be less functional … types of buildings that are only required for temporary storage, ”said Morris.
The increased demand for this room will increase the values and pricing, he said. Morris also said that there could be an increased interest in industrial outer warehouses that can be used for materials such as poles, rays and cabling.
The resilience of the supply chain should remain a hot topic in the fires, said Anderson. Even more because companies have to find paths to continue to support their customers.
“Additonally, the production options outside the primary location can offer important flexibility and ensure that production continues, even if the primary facilities are influenced by power outages or other disorders,” said Anderson in a press release on January 16 on January 16.
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