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Facing higher costs, manufacturers and distributors may pull back on expansion

Economic indicators show logistics expenses rising faster than shipping volumes
Expansions by manufacturers, such as Tesla's recent lease of a 267,099-square-foot industrial property in Fremont, California, may grow less frequent in reaction to higher costs and trade volatility. (CoStar)
Expansions by manufacturers, such as Tesla's recent lease of a 267,099-square-foot industrial property in Fremont, California, may grow less frequent in reaction to higher costs and trade volatility. (CoStar)
CoStar Analytics
April 13, 2026 | 6:49 P.M.

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The latest Purchasing Managers' Index, a monthly economic indicator measuring the health of the U.S. manufacturing sector, points to rising cost pressures. It's part of a scenario that could mean more caution when it comes to expansion.

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News | Facing higher costs, manufacturers and distributors may pull back on expansion