Global recession significantly impacts company and industry revenue growth projections; continued pricing compression, reverse globalization and a sustained commitment to “green” initiatives highlighted as key trends
CHICAGO, Sept. 21, 2009 – Today, key findings from the 2009 3PL Provider CEO Perspective survey are being presented at the Council of Supply Chain Management Professionals Annual Global Conference by survey author, Dr. Robert Lieb, Professor of Supply Chain Management at Northeastern University, and Joe Gallick, Senior Vice President of Sales for Penske Logistics. The findings, sponsored by Penske Logistics, analyze responses from 35 third-party logistics company CEOs across North America, Europe and Asia-Pacific whose companies were responsible for generating approximately $64 billion in revenue in 2008.
While last year's results showed some of the lowest revenue growth projections ever seen in the history of the survey, this year executives cite the global recession for becoming even more modest in their company and industry forecasts. However, in spite of these continued pricing pressures and volume volatility, more than 70 percent of third-party logistics providers reported launching new sustainability initiatives.
"This year's survey results underscore the caution and anticipation felt by 3PL executives as they wait for signs of a global economic recovery," commented Lieb. "Yet, despite bearish growth projections and acknowledgement that consolidation, pricing pressures and operational reductions were, and may continue to be, necessary adjustments, the opportunities for improved collaboration with customers, expansion into emerging markets and the possible addition of new management talent have many excited about the next several years."
"The past 12 months have posed unprecedented challenges for logistics providers around the world and yet opportunities for developing collaborative partnerships with customers have never been greater," said Vince Hartnett, President of Penske Logistics. "But in that time we have all learned a great deal and made business adjustments that have undoubtedly positioned the industry for steady growth and continued success as the economy rebounds."
Modest Revenue Projections
The global recession's influence has been profound, prompting very modest revenue growth projections. In fact, on average, 3PL CEOs in Europe project negative growth rates for their companies during the next year.
Shortened Supply Chains and Reverse Globalization
While the scale of the shift is small at this point, many CEOs surveyed expect that the trend toward reverse globalization and the shortening of supply chains will continue during the next several years.
Commitment to Sustainability and Human Capital
Despite the global economic downturn, 3PLs have identified environmental sustainability and human capital issues among those worthy of continuing ongoing support.
For access to the full Executive Summary, click here.
Thirty-five CEOs completed surveys via an Internet-based questionnaire during the summer of 2009. Companies participating in the annual survey included: Cardinal Logistics, DSC Logistics, DHL Exel Supply Chain, Genco Supply Chain Solutions, Kuehne+Nagel Logistics, Landstar, Menlo Logistics, Panalpina, NYK Logistics, Penske Logistics, Pittsburgh Logistics, Ryder Integrated Logistics, Schenker, Schneider Logistics, Transplace, UPS Supply Chain Solutions, UTi Integrated Logistics, Caterpillar Logistics Services, CEVA Logistics and Wincanton.
About Northeastern University's College of Business Administration
Northeastern University College of Business Administration, established in 1922, provides its students — undergraduate, graduate and executive — with the education, tools and experience necessary to launch and accelerate successful business careers. The College credits its success to expert faculty, close partnerships with industry and its emphasis on rigorous academics combined with experiential learning.
The College is highly ranked by several prestigious publications. BusinessWeek ranks the College 34th in its "Best Undergraduate B-schools" and number one in internships, and students have ranked the undergraduate program number one in job placement three years in a row in the publication. The College's Bachelor of Science in International Business program is ranked number thirteen by U.S. News & World Report. The undergraduate program is also distinguished by The Princeton Review and Entrepreneur magazine as number 14 of the U.S. top 25 entrepreneurship programs. For more information about Northeastern University's College of Business Administration, visit http://www.cba.neu.edu/.
About Penske Logistics
Penske Logistics is a wholly owned subsidiary of Penske Truck Leasing. With operations in North America, South America, Europe and Asia, Penske Logistics provides supply chain management and logistics services to major industrial and consumer companies throughout the world. Penske Logistics delivers value through design, planning and execution in transportation, warehousing, international freight forwarding and carrier management. Visit www.PenskeLogistics.com to learn more.