OUTLOOK 2014

specialreport

SO, YOU SAY THAT THE SUN WILL FINALly shine on the economy six years after the Great Recession? That optimistic view of the future direction of the economy was shared by 46 percent of the respondents who took part in However, respondents are not ready to spend more on distribution products and services, which include logistics and related products, material handling equipment, information technology, and transportation. About 43 percent said their distribution spend in 2014 would be on par with 2013 spending. Thirty-six percent expect an increase, 10 percent a decrease, and another 11 percent did not know.

The annual survey asks readers about their views on the U.S. economy as well as their plans for buying logistics services and material handling products in the year ahead. This year, 382 DC VELOCITY readers responded to the poll, which was conducted in November.

Despite the uptick in economic optimism, there’s still a
core of doubters. However, that universe has shrunk as
compared with years past. This year’s survey found that
only 23 percent of respondents expressed a pessimistic view
of the economy in 2014. About 31 percent said they weren’t
sure. Last year, 34 percent were pessimistic about economic
prospects.

Asked to assess the fortunes of their own company, about four out of 10 respondents remained optimistic. Forty-three percent expected strong sales growth at their own organization, while 30 percent foresaw flat revenues. Another 21 percent thought company sales would be weak. Six percent had no opinion.

CAUTIOUS APPROACH TO SPENDING

According to the Outlook survey, fewer readers are planning to increase their transportation spending than there were a year ago. While 55 percent of respondents to last year’s survey planned to spend more on transportation in the coming year (2013), only 39 percent said they would spend more in 2014. In fact, 40 percent said transportation spending would stay flat, while 10 expect a decrease. (Another 11 percent don’t know.)

Of those planning to spend more on transportation, 47 percent said the increase would average between 3 and 5 percent. Another 30 percent said they expected a 1- to 2- percent increase. About 13 percent expect to spend 5 to 9 percent more. About 10 percent said they expect to boost spending by more than 10 percent.