Logistics Leaders Express Optimism at CSCMP

Penske survey reveals positive feelings about long-term growth


Major Supply Chain and Logistics Industry Trends and Insights

Revenue Projections Improve

With few exceptions, the CEOs are more bullish about the financial prospects of their companies over the next one and three year periods.

  • One-year company revenue growth projections were 10.8 percent for North America (10.4 percent in 2010), 8.4 percent for Europe (7.2 percent in 2010), and 15.8 percent for APAC (22.5 percent in 2010).  The average three-year company growth projections were 10.3 percent for North America (10.6 percent in 2010), 9.1 percent for Europe (8.3 percent in 2010), and 14.6 percent for APAC (19.5 percent in 2010).
  • One-year regional 3PL industry revenue growth projections averaged 6.8 percent for North America (7.3 percent in 2010), 6.1 percent for Europe (4.8 percent in 2010), and 9.0 percent for APAC (15.4 percent in 2010).  The average three-year regional 3PL industry growth projections were 8.0 percent for North America (7.8 percent in 2010), 6.3 percent for Europe (5.4 percent in 2010), and 10.3 percent for APAC (12.9 percent in 2010).
  • Twenty-eight of the 36 CEOs surveyed reported their companies were profitable during 2010, with three reporting they broke even, and three reporting their companies were unprofitable.

Outlook for Logistics Mergers and Acquisition Activity (M&A)

  • Only five of the 36 CEOs reported their companies were involved in significant M&A activity in their regions during the past year.
  • Most believed the 3PL consolidation movement will continue in their regions.
  • CEOs in all regions expect less than 9 percent of their companies’ average annual revenue growth to come from M&A over the next three years.

Disruptions from Japan Tsunami and Earthquake Cause Rethinking

•     25 percent of the North American 3PL CEOs reported that some of their customers had experienced a loss of sales in Japan. Thirteen percent of the European CEOs reported similar experiences, as did 50 percent of the CEOS surveyed in the APAC region.

•     Eighty-eight percent of the 3PL CEOs included in the North American and European surveys reported that some of their customers had experienced a disruption of supply. Eighty percent of the CEOS in the APAC region also reported that that was the case.

•     31 percent of the North American 3PL CEOs reported that some of their customers had experienced supplier failures as a result of the tsunami/earthquake. Fifty percent of the CEOs involved in the European survey and 30 percent of those involved in the APAC survey also reported that to be the case.

Environmental and Sustainability Investments Continue

Despite the volatility of the global economy, the 3PL industry’s involvement in environmental sustainability issues continued to expand.

  • Sixteen of the 36 CEOs reported their companies launched new sustainability initiatives during 2010.
  • Nineteen CEOs reported expanding existing sustainability projects.
  • The percentage of existing customers asking third-party logistics providers to analyze their supply chains in terms of environmental impact/cost were 8 percent for North America (15 percent in 2010), 8 percent for Europe (7 percent in 2010), and 7 percent APAC (9 percent in 2010).
  • “Green” capability is ‘infrequently’ a major factor in attracting and retaining clients, according to 86 percent of CEOs surveyed.

 Social Media Plays a Growing Role

The third-party logistics providers are generally optimistic about the value of social media activities moving forward, despite the impact of these activities having been limited to date.

  • 69 percent of companies believe social media will become increasingly important in 3PL industry
  • 64 percent of companies have LinkedIn accounts
  • 47 percent of companies have Facebook pages
  • 36 percent of companies have Twitter accounts
  • 28 percent of companies post videos on YouTube
  • 17 percent of companies surveyed have blogs

Survey Design

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