It’s been a year now into full or partial lockdowns, social distancing rules and work from home as a result of the COVID crisis which unequivocally forced people to spend more time into their homes and consequently to change their shopping habits - reconsidering what is essential and therefore set new priorities on what to buy. One of the new essentials seems to be – not surprisingly – bedding products as people seek extra comfort at home.

After the lockdown last spring that forced manufacturers from all sectors to halt production, auto makers now have to face another challenge: the global chip shortage due to the high demand on consumer electronics (laptops, gaming consoles, TVs etc.). The increased need for the technology devices along with the initial lockdowns and employee furloughs overwhelmed chipmakers and now are struggling to keep up with the surge in orders. Another factor was the faster than anticipated recovery in the second half of 2020 as several manufacturers in the sector ramped up the car production to rebound from the spring’s shutdowns and increase the chance of hitting the year’s target.

For investors, foot traffic data is fast becoming a critical weapon as part of an alternative data armory. The value of tracking real-time visitation numbers to retail and consumer-facing compa-nies is widely recognized. Yet, as we explore here, measuring traffic to industrial companies can offer even more effective signals to predict top line performance. It is intuitive that the number of employees at production facilities should be an indicator of pro-duction, which in turn would help forecast revenues.

In this third blog post of our summer series, we review two different measures of economic activity that can help paint an overall picture of consumer trends. Measuring foot traffic at consumer discretionary businesses helps us understand the extent to which people are back to shopping for non-essentials - an indicator for increasing flexibility of movement and confidence in the outlook. During April and May there was a massive year-over-year drop in visits to non-essential locations.

Over the past several weeks, meat processing plants around the world have been receiving increased attention in the media. The high numbers of COVID-19 cases in these locations, where physical distancing can be difficult, has affected meat supply chains across the country. While some plants closed, many have now reopened. Physical distancing measures are in place but the number of workers on production lines remains depressed with many having fallen sick and others cautious about returning to work due to the risk of infection.

As we continue our trip across the property types analyzing the change in foot traffic using Advan data and the impact of Covid-19 on commercial real estate, Eigen 10 advisors examines the industrial property sector this week. The data this week comes from the Port of LA and an industrial warehouse park outside of Chicago. The industrial park is a mix of food distribution, light manufacturing, auto part distribution and other uses.

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