<p>For the past several decades, the dominant playbook was globalization and specialization. Companies outsourced components to the lowest-cost producer, often halfway around the world. Supply chains became long, complex, and highly optimized for cost.</p><p>On paper, it made perfect sense. If a supplier could produce a component cheaper and sell it to multiple competitors in the same industry, everyone benefited from economies of scale.</p><p>But there was a hidden assumption baked into that model. The assumption was that supply chains would always function smoothly.</p><p>And we now know that assumption was flawed.</p><p>Over the past several years, we’ve seen disruptions from pandemics, geopolitical tensions, trade disputes, and transportation bottlenecks. What used to be considered low-probability events are now happening with uncomfortable frequency.</p><p>Supply chains are no longer just an efficiency mechanism. They’ve become a source of risk.</p><p>And when risk enters the equation, the optimal strategy changes.</p><p>We’re now seeing companies rethink their dependence on third-party suppliers for critical components. In many cases, they’re bringing production back in-house. That’s vertical integration.</p><p>Not across the board. Not for every component. But selectively, for the parts of the value chain that are mission-critical.</p><p>That&#39;s changing demand for industrial real estate. </p><p>-------------</p><p>**Real Estate Espresso Podcast:**<br> Spotify: [The Real Estate Espresso Podcast](<a href="https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1" target="_blank">https://open.spotify.com/show/3GvtwRmTq4r3es8cbw8jW0?si=c75ea506a6694ef1</a>)  <br> iTunes: [The Real Estate Espresso Podcast](<a href="https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613" target="_blank">https://podcasts.apple.com/ca/podcast/the-real-estate-espresso-podcast/id1340482613</a>)  <br> Website: [<a href="http://www.victorjm.com/" target="_blank">www.victorjm.com</a>](<a href="http://www.victorjm.com/" target="_blank">http://www.victorjm.com</a>)  <br> LinkedIn: [Victor Menasce](<a href="http://www.linkedin.com/in/vmenasce" target="_blank">http://www.linkedin.com/in/vmenasce</a>)  <br> YouTube: [The Real Estate Espresso Podcast](<a href="http://www.youtube.com/@victorjmenasce6734" target="_blank">http://www.youtube.com/@victorjmenasce6734</a>)  <br> Facebook: [<a href="http://www.facebook.com/realestateespresso%5D(http://www.facebook.com/realestateespresso)" target="_blank">www.facebook.com/realestateespresso](http://www.facebook.com/realestateespresso)</a>  <br> Email: [<a href="mailto:[email protected]" target="_blank">[email protected]</a>](mailto:<a href="mailto:[email protected]" target="_blank">[email protected]</a>)  <br>**Y Street Capital:**<br> Website: [<a href="http://www.ystreetcapital.com/" target="_blank">www.ystreetcapital.com</a>](<a href="http://www.ystreetcapital.com/" target="_blank">http://www.ystreetcapital.com</a>)  <br> Facebook: [<a href="http://www.facebook.com/YStreetCapital%5D(https://www.facebook.com/YStreetCapital)" target="_blank">www.facebook.com/YStreetCapital](https://www.facebook.com/YStreetCapital)</a>  <br> Instagram: [@ystreetcapital](<a href="http://www.instagram.com/ystreetcapital" target="_blank">http://www.instagram.com/ystreetcapital</a>)  <br></p>