Warehouse on Wheels has released it’s Q1 2025 Economic Report. This report highlights key trends impacting the domestic supply chain with a key focus on storage, warehousing, and transportation.

To receive the full Quarterly Economic Report directly in your inbox, please submit your email address below.

Key Takeaways

Inventories-to-Sales: Many supply chain managers accelerated inventory purchases into Q1 to avoid tariffs, but current data shows inventories remain balanced with no signs of oversupply.

Warehousing: Industrial vacancy rates rose to 7.6% as new supply continues to outpace demand, and despite slowing absorption, rents remain 72% higher than pre-pandemic levels.

Supply Chain Activity: Freight volumes were expected to normalize in early 2025, but unexpected tariff risks have dampened activity, with hopes for improvement in the second half depending on trade negotiations.

Retail Sales: Core retail spending grew steadily through February, with e-commerce and furniture seeing strong gains, though discretionary categories like electronics and sporting goods continued to lag.

Manufacturing Trends: Manufacturing activity slowed in March as new orders tapered off following early inventory buildup, but optimism remains for a rebound later this year.