Reflecting Back on The State of U.S. Logisticsby Luke Kupersmith on 2012-07-10 03:03:09
Earlier in June, the Council of Supply Chain Management Professionals released their annual State of U.S. Logistics report to their members, reporting on the general trends and observations about U.S. logistics and supply chains in general. Their findings reflect an interesting intersection between improvement along with obstacles and trouble spots still in the way.
Some quick observations of the report showcase both the positives and negatives of the current state of logistics in the U.S. On the positive side, there has been a steady increase in profit that has gone to many of the shipping sources from shipping carriers, such as FedEx and UPS, who has seen their profits rise 9%, to rail, which saw an increase of 15%. Ports saw a generous increase in volume as well. These statistics can also be linked with good export activity, rising 15% from the previous year to $1.27 trillion. Many of these companies coordinating or in the business of moving shipments are doing well.
On the downside, however, there are still many hurdles companies should be aware of. These problems include a slow GDP growth rate, which has lowered to 1.7 rather than 2.8 from the prior year. Also, even though many shipping arenas saw profits with higher costs, over six percent of the increase in logistics costs resulted in an over 50% decline in GDP output. These statistics show that even though some of the logistics and shipping companies are doing well themselves, those working within manufacturing and businesses in the U.S. are still struggling with economic hurdles.
Understanding where all the companies lie in this spectrum of logistics and supply chains can better help to comprehend where companies can save money and make a difference in their own company’s finances and a hopefully better 2013 State of Logistics Report! Source Consulting aims to be vigilant in all supply chain and logistics news that affects businesses both domestically and internationally. Our knowledgeable employees and up-to-date technology helps businesses reduce shipping costs and stay on top of the best shipping knowledge.