Logistics study projects slow economic growth and more “near-shoring” in the future
Sluggish economic growth will continue to be a dominate factor affecting the logistics landscape for the next 12 years, according to a global study conducted by Penn State University, Capgemini Consulting and recruiting firm Korn/Ferry International, with such slow-growth conditions helping spur more “near-shoring” of manufacturing activity back to the North and South America in the future.
The 18th annual study of the global logistics market – also supported by Penske Logistics and the eyefortransport forum – is based on responses from 581 third-party logistics (3PL) firms, 633 users of 3PL services, and 179 shippers that don’t use 3PL providers.
Zack Deming, principal at Korn/Ferry, noted over the next 12 years the biggest challenge facing the global logistic market is slow economic growth, ranging from 1% to 3% for developed economies like the U.S., and Europe, while “emerging markets” in Africa and Asia could see growth range from 2% to 6%.
“In short, the ‘easy growth’ is over; moving forward, such economic uncertainty alongside growing government budget deficits and increased regulatory pressure will make businesses reluctant to invest – especially in supply chain operations,” he said in a conference call with reporters hosted by Wall Street investment firm Stifel Nicolaus & Co.