Survey Finds Third-Party Logistics CEOs Projecting Growth Amidst Slow Economy
6th November 2013 17:27 - Transport and Distribution
The 20th Annual Survey of Third-Party Logistics Provider CEOs, sponsored by Penske Logistics, revealed that despite a slow economy, North American CEOs have their sights set on growth, expecting their companies to increase revenues by an average of 14.6% over the next three years.
The thirty-four CEOs were asked to project regional 3PL (Third-Party Logistics) industry revenue growth rates for the next three year-period, the CEOs projected average regional revenue growth rates of 8.29% in North America, 5.9% in Europe and 8% in the Asia-Pacific region.
Globally, half (52%) of companies either met or exceeded their revenue projections in 2012, down from three fifths (63%) in 2011. In addition, the continued instability of the Euro-zone economy and migration of some manufacturing out of China meant lower profitability in the Europe and Asia-Pacific regions – respectively, 50 and 56 percent experienced moderate profitability.
Dr. Robert Lieb, Professor of Supply Chain Management at Northeastern University, said:
“Despite Euro-zone challenges and some slowing of manufacturing activity in China, opportunities to expand services geographically have both regions poised for growth… Expansion into eastern Europe and Russia and an increased focus on servicing domestic consumption within China provide 3PLs with the opportunity to strengthen and stabilize their operations in those regions by filling out the services offered and customer base."
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