The Council of Supply Chain Management Professionals (CSCMP), Lombard, Ill., released its 28th Annual State of Logistics Report. CSCMP collaborated with global strategic management consulting firm, A.T. Kearney, Chicago, as the author and researcher, with Penske Logistics, Bloomfield Hills, Mich., continuing in its long-standing role as presenter of the report.

"This highly anticipated report contains the statistics and industry insights that will not only help our members do their jobs better, but also better prepare them for the business demands ahead in a very dynamic marketplace," says Rick Blasgen, president and CEO of CSCMP.

The report includes a focused narrative on the economic environment impacting logistics; insights from interviews with industry leaders, including shippers, carriers and analysts; a spotlight on relevant trends; and a strategic point of view on the state of the industry.

“We believe readers will be interested in this year’s report for the retrospective view on 2016 market dynamics,” says Sean Monahan, A.T Kearney partner and report co-author. “Most importantly, it will provide the forward-looking view on considerations for the coming 18 months and beyond.”

This year’s report shows the first decline in United States Business Logistics Costs (USBLC) since 2009, even as a surging e-commerce sector propelled demand for parcel delivery services.

“Even in this current uneven economy, we are seeing upticks in demand for outsourced logistics services,” adds Marc Althen, president of Penske Logistics. “It is during times like these that our customers rely on us even further for increased collaboration that will result in streamlined supply chain costs.”

Highlights of the report include:

  • U.S. economic growth will be strong in the near term.
  • Rising interest rates and an appreciating U.S. dollar could increase the costs of doing business.
  • Businesses appear to be cautious in adding inventory under the cloud of uncertainty.
  • Fluctuations in truck tonnage demand to continue as businesses adjust their outlook over time.