Japan Brief: Manufacturing inventory set to emerge as next driver of logistics demand

–Japan’s total manufacturing inventory increased for a seventh consecutive quarter in Q4 2022. The rise was most notable for “raw materials and supplies”, which has grown by 54% since prior to the onset of the pandemic. Increases in the machinery and equipment manufacturing sectors, including automobiles, have also been prominent.

–CBRE’s data show the proportion of electronic components and machinery as goods handled in logistics facilities completed in 2021-2022 is higher than that of older properties, particularly in Greater Nagoya and Greater Fukuoka. The build-up of inventory in the machinery and equipment manufacturing sectors is set to emerge as a major driver of new demand for logistics space.