The chief executive officer of Prologis Inc. has stated that US immigration policy is contributing to a labour shortage, which in turn is driving up building costs. Prologis is a real estate investment trust that owns and operates warehouses. CEO Hamid Moghadam made these remarks during a recent Bloomberg TV interview.
Moghadam noted that construction costs were expected to stabilise this year. However, he believes that current immigration policies are placing additional pressure on the construction sector. President Trump’s administration has pledged a significant deportation campaign, with Immigration and Customs Enforcement (ICE) expanding its detention facilities and setting arrest quotas.
According to Moghadam, this situation poses a significant challenge for Prologis’ customers. Warehouses require a substantial workforce, and these are often the individuals affected by immigration issues. This is pushing businesses towards automation, although it may not always be economically viable at this time.
Moghadam expressed uncertainty about the future labour supply needed to support manufacturing growth. The increasing costs and labour shortages are creating multifaceted problems for the warehouse and manufacturing industries.
