Armstrong study cites C.H. Robinson, Expeditors International, Landstar Logistics as leading 3PLs; Exel and UPS cited in VAWD segment
Stoughton, WI — March 26, 2004 — For the ninth consecutive year, U.S. growth in third-party, contract logistics services exceeded growth in the overall U.S. economy, with net revenues for third-party logistics providers (3PLs) rising by 6 percent, to $32.9 billion, in 2003, following 7 percent growth for 2002, according to a new report from supply chain management consulting firm Armstrong & Associates.
Net income for 3PLs increased to 4 percent of net revenue, up from 3 percent in 2002 and 1.7 percent in FY 2001. Turnover (gross revenues) increased by 8.2 percent, to $76.9 billion.
Individual company results varied, with select companies posting strong results, Armstrong reported. Value-added transportation manager C.H. Robinson continued to improve its best-in-class results by increasing net revenue (gross margin) by 12.6 percent. Its net after-tax income margin increased to 20.9 percent. Net revenue was $545 million, and net income was $114.
International transportation manager, Expeditors International, maintained its excellent operations, according to Armstrong, with net revenues up 10.1 percent. Profitability continued at high levels, with net after-tax income margins of 16.2 percent.
Armstrong also cited Landstar Logistics for what the consultancy termed the 3PL's "top quality results." Landstar's net revenue was up 18.4 percent, to an estimated $58 million, with net after-tax profitability estimated at 10 percent. Landstar's agent model has been extended to include international transportation management, Armstrong noted.
Among midsized value-added warehouse distribution (VAWD) 3PLs, Kenco, Genco and DSC all had revenue growth exceeding 10 percent. Net after-tax profitability for the VAWD segment improved to 2.3 percent, up from 1.7 percent in 2002. Exel and UPS SCS continue to be the major players in VAWD. Both had good growth and improved profitability.
UPS SCS has reached $2.1 billion in net revenue and was profitable in all four quarters of FY 2003. Standard UPS operating efficiencies are taking hold, Armstrong reported.
Of the 35 companies in Armstrong's core tracking group, 89 percent had increases in net revenues for 2003.
Stoughton, WI — March 26, 2004 — For the ninth consecutive year, U.S. growth in third-party, contract logistics services exceeded growth in the overall U.S. economy, with net revenues for third-party logistics providers (3PLs) rising by 6 percent, to $32.9 billion, in 2003, following 7 percent growth for 2002, according to a new report from supply chain management consulting firm Armstrong & Associates.
Net income for 3PLs increased to 4 percent of net revenue, up from 3 percent in 2002 and 1.7 percent in FY 2001. Turnover (gross revenues) increased by 8.2 percent, to $76.9 billion.
Individual company results varied, with select companies posting strong results, Armstrong reported. Value-added transportation manager C.H. Robinson continued to improve its best-in-class results by increasing net revenue (gross margin) by 12.6 percent. Its net after-tax income margin increased to 20.9 percent. Net revenue was $545 million, and net income was $114.
International transportation manager, Expeditors International, maintained its excellent operations, according to Armstrong, with net revenues up 10.1 percent. Profitability continued at high levels, with net after-tax income margins of 16.2 percent.
Armstrong also cited Landstar Logistics for what the consultancy termed the 3PL's "top quality results." Landstar's net revenue was up 18.4 percent, to an estimated $58 million, with net after-tax profitability estimated at 10 percent. Landstar's agent model has been extended to include international transportation management, Armstrong noted.
Among midsized value-added warehouse distribution (VAWD) 3PLs, Kenco, Genco and DSC all had revenue growth exceeding 10 percent. Net after-tax profitability for the VAWD segment improved to 2.3 percent, up from 1.7 percent in 2002. Exel and UPS SCS continue to be the major players in VAWD. Both had good growth and improved profitability.
UPS SCS has reached $2.1 billion in net revenue and was profitable in all four quarters of FY 2003. Standard UPS operating efficiencies are taking hold, Armstrong reported.
Of the 35 companies in Armstrong's core tracking group, 89 percent had increases in net revenues for 2003.
