Annual Review and Outlook - Logistics

Perspectives

By Michael Scheid

2015 was a historical year for the third-party logistics industry, not in terms of industry revenue because lower fuel surcharges brought top-line dollars down from their record highs in 2014, but in terms of industry consolidation. The 3PL industry witnessed a record number of mergers and acquisitions among the segment’s largest players over the last 12 months. Favorable financial markets are enabling large companies to secure the money necessary to make sizable acquisitions that translate into top- and bottom-line growth.

By Peter Friedmann

Perhaps at no time since the inception of the Agriculture Transportation Coalition 28 years ago have circumstances conspired to create so many challenges for the U.S. agriculture and forest products exporters, and many importers.

By Jason Tolliver and Bethany Bailey

The industrial real estate sector garnered the attention of investors in 2015. U.S. commercial real estate has become the asset class of choice as investors search for yield in a global, low-interest rate environment, and the U.S. industrial sector has become a beacon for capital, evidenced by the $43.2 billion in sales through last year’s third quarter.

Archived Years

Featured Article

From the opening of the Panama Canal’s expanded locks to container weight regulations and the impact of mergers and acquisitions, 2016 will feature a new round of challenges and opportunities for shippers, carriers and transportation providers. Three shippers — Alison Leavitt of the Wine and Spirits Shippers Association, Greg Boyle of Philips, and Susan Pellechio of Staples — discuss their concerns for the year ahead.

ARO Commentaries

A future trend that may prove to be most important for 3PLs is the increasing demand for last-mile and one-hour deliveries. Midsize and smaller retailers, we believe, will look to 3PLs to help them compete against big retailers.
Supply chains are being recognized more and more as the critical success factor for any business, both for profitability and survival. Operations strategies, organizational development and change management processes, and technology are being challenged for their effectiveness and efficiency.