Despite the harsh winter and the infamous Polar Vortex, the U.S. logistics industry experienced growth through the tail end of 2013 and into the first half of 2014, running parallel with revenue increases in 2012.
Overall State of the Logistics Industry
According to the Council of Supply Chain Management Professionals (CSCMP) State of the Logistics Report, all modes of the transportation industry experienced gains in revenue with the overall transportation sector reaching a growth of 2 percent.
The numbers included in the report present the growing importance and magnitude of the logistics sector in the U.S. In 2013, business logistics cost in the U.S. rose to $1.39 trillion, a 2.3 increase from 2012 and mirroring similar levels to pre-recession America.
2014 Growth Projections and Areas of Concerns
Although 2013 continued to be a profitable year for the logistics industry, the picture seems much brighter for 2014.
“This will the best year we have experienced in the last eight years,” said Rosalyn Wilson, author of the report. “The first five months of 2014 have been the strongest since the end of the Great Recession. I believe 2014 will be a banner year for the logistics industry.”
One of the largest areas of growth in this industry continues to be in the freight sector. According to industry experts, 2014 was predicted to be the best year in the past eight years for freight transportation. Due in part to an increased amount of online purchases from consumers, between January and May 204 alone, the transportation industry saw a 13 percent increase in freight shipments.
More eyes will be on the trucking industry for the remainder of the year, the report details, as one of the largest issues facing the industry this year continues to be regarding the trucking driver shortage. The shortage is due, in part, to a higher cost for drivers, less experienced drivers available for hire and increased government regulations on the industry.
Other highlights from the report include: