Infrastructure Investments Ranked Biggest Opportunity for Global Transportation, Logistics Industry: Study

Despite headwinds, the global transportation and logistics sector is taking a positive approach, focusing on expansion and investment and looking to develop solutions to big challenges such as climate change, according to the Global Transportation and Logistics Risk Report, by Willis, a WTW business.

“The transportation and logistics industry stands at a crossroads in 2025, with the potential to drive significant positive change. By leveraging technology, addressing sustainability goals, and navigating regulatory and economic challenges, companies can position themselves for success in a rapidly evolving market. It will be paramount for companies to keep on top of fast-changing cyber threats, as well as being able to demonstrate that they are on a path to climate resilience and sustainability. These are no longer ‘nice to have’, but business necessities,” says Garret Gaughan, global head of direct and facultative at Willis.

Key takeaways:

• A majority (57%) of those surveyed ranked infrastructure investments among the sector’s biggest business opportunities for the next two years. As well as general investment in improving rail, ports and airports, this may reflect a drive to build out the facilities and technologies needed for the transition to clean energy.
• New regulations, particularly in environmental and cybersecurity areas, are adding complexity and costs to operations, emerging as the top risk (53%). 
• 50% of respondents ranked global trade expansion as a key opportunity over the next two years.
• 44% ranked customer experience as a leading opportunity across the next two years.
• 44% of respondents plan to expand into new markets.

• 47% ranked business interruption as a top risk, as heightened global instability and conflict, as well as disruptions caused by natural disasters and operational failures pose risks, which can lead to significant delays and loss of customer trust. 
• 37% of executives ranked supply chain disruption as a top risk.
• Cybersecurity was ranked by 34% as a top risk.
• Technology is proving to be critical to managing risks and improving service efficiency, as more than half of executives (55%) look to invest in technology as a strategy.
• Additionally, sustainability is a major focus for the industry, with 61% of respondents citing it as their biggest environmental risk.