Armstrong & Associates, a supply chain market research and consulting group, recently released its 2012 3PL Market Analysis and 2013 Predictions Report. According to the report, gross revenues in the domestic Third Party Logistics market increased 6% over the course of 2012; specifically, 3PL revenues rose to $141.8 billion, up from $133.8 billion in 2011. The U.S. gross domestic product (GDP) paralleled this increase, in what is referred to as a “slow dance” by the report. Furthermore, Armstrong & Associates predict that this slow, steady 3PL revenue growth will continue through 2013, with another 4-6% increase over 2012 numbers.
Some specific facts and figures:
- Domestic transportation management (DTM) revenue increases were the highest of all 3PL segments in 2012, at 9.2%
- Outside of the United States, the report described “recessionary” results in Europe and “warm but not hot results” in Asia.
- International transportation management (ITM) revenue results were the least encouraging, which the report explained as reflective of “the global economic malaise”.
While the growth rate for domestic 3PL revenue is fairly modest, the fact that there continues to be growth at all is encouraging, given the challenging current economic environment and sizable government cutbacks. And it’s positive proof that in times of financial impediments, consumers will continue to need logistics services. The increased in revenue for 3PL providers is also due to furniture retailers outsourcing the delivery process to improve efficiencies and overall customer service. As Logistics Management’s Jeff Berman notes, there is a growing sense of optimism among 3PL providers regarding the future of the industry. And that can only be a positive thing.
