According to logistics experts, the impacts of the forest fire supply chain in southern California have been minimal. However, several experts said that the challenges could later come once people begin to rebuild the infrastructure and houses.
The wildfires in southern California erased various neighborhoods, streets and roads, and increased the lives of many residents in Altadena, Lake Hughes, Pacific Palisades and San Diego County.
The fires have not been 100%contained, according to a Map of the Foresty Department and Fire Protection of California for the last time updated on January 27. But progress is made, as Eaton’s fire is 99% containment, while Hughes’s fire is 98% containment. The affected hectares of the four active fires are 54,519, according to the Cal fire map.
Warehouses avoided direct impact
The wildfires had little or no impact on the warehouses, as most were outside the fire area, said Lisa Anderson, president of LMA Consulting Group, told the DIVE supply chain in an interview. However, there are short -term challenges presented for some companies.
“Even companies outside the firefighters experience wavy effects based on electrical interruptions, infrastructure tension and demand for consumption,” Anderson said.
Anderson said he has a customer who supplies construction products. The customer’s manufacturing installation was unable for about a week due to preventive stops, although its area was not on the fire.
There are several warehouse and logistics centers in southern California, but most are in the inner empire, Anderson said. Some locations that make up the inner empire include Riverside, Upland, Fontana and San Bernardino.
A logistics provider, DHL Supply Chain, told the supply chain in an email that had no direct impact on fires.
“The DHL supply chain operates 13 places in the area and has had no direct impact on our associates or facilities of recent fires. Our teams continue to supervise the situation and are ready to support any changes to the supply chains of our clients to ensure their business continuity, “the company said.
Even without direct warehouse impacts, Anderson said that the detailed supply chains will be altered to change the consumer’s demand.
For example, a shop in a local area devastated by fires could be burned. As a result, local residents of this specific store could buy in other areas for essential items that they lost to the fire, he added, changing purchase patterns and inventory needs along the way.
Reconstruction of efforts to cause supply, storage needs
Although there is no clear time to reconstruct efforts in the affected areas, CBRE experts told the DIVE supply chain that the demand for short -term storage storage of construction residential providers and Manufacture is expected to jump.
It will take some time before any type of reconstruction begins, said Robert Pedicord, executive director of Cbre’s South Bay Operations.
“Most communities talk about construction will not start from two to three years, because obviously the infrastructure must be rebuilt first. First, you must eliminate all waste and then the infrastructure must be rebuilt. [The] Time frame that appears right now [is] Two to three years before any construction begins, “said Pedicord.
Articles that could deal with scarcity in the midst of reconstruction efforts include materials such as the socket, cabinets, plumbing and roof supplies, said Pedicord.
Once the materials are available and begin to enter Los Angeles, there will be a greater demand for storage space required due to the significant amount of inventory needed for infrastructure and houses, John Morris, In an interview, the President of Industrial America & Logistics in CBRE.
“Some of this may be a classroom warehouse as the type of facilities used to send e -commerce, etc. but I think most of this will be less functional … type D “Buildings that will only be needed for temporary storage,” said Morris.
He said that the increase in demand for this space will increase values and prices. Morris also said that interest in industrial storage could be used for materials such as sticks, beams and wiring.
Anderson said that the resilience of the supply chain should remain a hot topic in the fires. Even more so because companies need to find ways to continue to support their customers.
“In addition, having manufacturing options outside of primary location can provide vital flexibility, ensuring that production continues, even if primary facilities are affected by electrical interruptions or other interruptions,” Anderson said in a statement. of the press of January 16.
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