JIT was adopted by the Japanese because of real estate for warehouses is in short supply and very expensive. For most American businesses to adopt the process it’s like wearing a raincoat in the desert, we have plenty of land and real estate was fairly reasonable until the communist inflation showed up.
That is certainly a component, but there are other things in play, such as tying up more capital (a major one), supplies getting old (which applies to more than you might think), an extra step in storing and relocating, and paying taxes on the stuff sitting in the warehouses (a very major one).
The main benefit of JIT is less inventory costs. One of these is tax as mentioned above. Also, lost opportunity costs as well as storage costs. If you are paying for that inventory you can not make profits doing something else with that money. We may have room but you have to pay for the use of that room. I guess there are more costs also.
Profit is affected by the cash flow velocity. Holding inventory is generally negative on profit.
Losing sales is the other side of that gamble.
There is good commercial value to being nimble, able to ramp it up and turn it off on demand.
There are other benefits to JIT, typically that quality issues are nipped in the bud, reducing those losses. Also, design evolution can result in substantial inventory losing value - who wants last year’s garbage?
Costs and prices will go up as business migrates toward JIC