1. Distribution Trends and EDOsApril 3, 2013

2. TopicsSite selection factorsTrends in the industryWhat trends mean to EDOsPositioning in the marketplace2 3. What matters to distribution/logisticsMarket, population & productionbalance cost and access on the peripherysupply chain balance: production vs. customerTransportation networkshift goods to lower cost modes:ShipRailTruckPlaneLabordeep labor pools with low wagesLand3 4. Industry TrendsEvolution of Big Box DistributionBig Box driving force of demandDuring downtown, large firms ate up supplyMajor logistics hubs remain primary locationsbut new markets emergingNorm moving to 36 foot clear heightsA lot of investment in technology4 5. Impact on EDOsEvolution of Big Box DistributionProduct: sites and buildingsUnique building attributes maylimit search to handful of existingopportunities; build-to-suit is notalways attractiveUp front cost avoidance becauseof technology investment5 6. Industry TrendsPanama Canal ExpansionIncrease in grainthrough gulf coast portsContainerized graincould see increase6LNG vessels through the canalIncrease in competitiveness for east coast/gulf portsImpacts on overall distribution network; shifting the need forrail, intermodal, etc. 7. Impact on EDOsPanama Canal ExpansionInfrastructureSmart investment planning in lightof relatively short leasesServiceability of inland waterwaysSpecialized sites and operations7 8. Fuel PricesPrices Go UpPush to increase railand seaBig Box distributionincreases inimportance8How much lighttight oil do wehave?Prices Go DownMore distributednetwork of smallerdistribution centers 9. Positioning to Capture Investment9Asset MappingDefine your competitivepositionOverall and by target industryKnow your competitorsWhat is their competitive position?Know your customersNiche targetingPrepare for first interaction &response