Same-Day Carriers Report Strong Growth

Same-Day Carriers Report Strong Growth

The same-day delivery industry is growing faster, driven by next-day retail replenishment and e-commerce, an industry association survey claims.

The Messenger Courier Association of America 2012 Industry Survey found same-day delivery companies are increasingly secure in the supply chain.

“Fifty-eight percent of our members told us that their revenue was either much better or better today than it was a year ago,” said Rob Johnstone, MCAA president.

In terms of profit, 39.1 percent of the carriers surveyed said earnings were better today than a year ago, with 36.7 percent saying they were “about the same.”

Changing retailer and consumer expectations and rapid inventory replenishment plans are driving some of that growth and profitability, said Johnstone.

“Many (retailers) have the expectation that they can order inventory at the close of business and have it on-hand when they open the next day,” said Johnstone.  

“Our industry makes that happen. Over 60 percent of our survey respondents (63.2 percent) say they cater to this market,” he said, adding that none did in 2010.

The MCAA survey underscores the extent of change taking place in retail as more consumers shop online and retailers realign supply chains for faster service.

Retailers increasingly are building e-commerce distribution centers to better compete with industry giants such as Amazon.com as demand increases.

Package carriers UPS and FedEx are preparing for more than one surge in e-commerce-sourced shipping this holiday season, hiring temporary workers.

Contact William B. Cassidy at wcassidy@joc.com and follow him at www.twitter.com/wbcassidy_joc