“The Great Reset”
Tags: 3PL, July 2023, Logistics, Supply Chain
The State of Logistics Report, produced annually for the Council of Supply Chain Management Professionals by global consulting firm Kearney and presented by Penske Logistics, delivers a snapshot of the American economy through the lens of the logistics sector and its role in overall supply chains.
Among the major 2023 report findings:
- A key report statistic, U.S. business logistics costs (USBLC), shows an increase. USBLC now stands at a record $2.3 trillion (it was $1.85 trillion last year), representing 9.1% of national GDP—the highest percentage of GDP ever.
- While consumers are continuing to return to stores, ecommerce sales are not slowing down. In 2022, the U.S. ecommerce market grew by 8%, to $1.03 trillion (it was $871 billion). It is now 14.5% of the entire U.S. retail market.
- Third-party logistics providers are investing more capital into their technology offerings, as opposed to shippers (see chart). Respondents indicated that 96% of 3PLs have migrated to the cloud (shippers indicated 86% of them have), while 80% of 3PLs are investing in IoT (77% for shippers).
- The reshoring movement continues. For a number of businesses, reshoring has gone from a strategic possibility to a market reality. American imports of Mexican manufactured goods have grown by 26% (dating back to spring 2020), according to the Kearney Reshoring Index.