Study: Economic uncertainty reshaping 3PL market outlook
CEOs of third-party logistics service providers (3PLs) in
North America, Europe, and Asia-Pacific have scaled back
their expectations for growth, according to the results of an
annual survey. They also plan to revise their traditional
operating models and services to reflect their economically
battered customers’ changing requirements.
The research, The 19th Annual Survey of Third-Party
Logistics Providers, was conducted by Dr. Robert C. Lieb of
Northeastern University and Dr. Kristin Lieb of Emerson
College and is sponsored by Penske Logistics. The 31
respondents represented some of the world’s largest 3PLs.
For the first time in the survey’s history, none of the
regional growth forecasts reached double-digit levels.
Respondents in North America projected average growth of
8. 3 percent for the next three years, while CEOs in Asia-Pacific forecast 8.0 percent growth and European CEOs
projected 5. 1 percent growth. One reason for the subdued
global outlook is that economic woes have cut exports
between the regions, causing “a ripple effect” worldwide,
said Robert Lieb in an interview.
Among the industry dynamics cited by CEOs worldwide
were increasing cost pressures on customers and continuing
economic uncertainty. Both lead to lower margins for 3PLs,
thus raising the risk of further industry consolidation.
North American respondents cited tightening capacity and
unpredictable fuel costs, while Europeans often mentioned
the economy and a resulting decline in demand for 3PL
services. In Asia-Pacific, respondents cited growing domes-
tic consumption in China, increasing competition from
“local” 3PLs, and slower growth in China and India.
