What you need to know about the future of this exciting industry.
Are you looking for a new career? One that is exciting, fast-paced, with great potential for financial success? Then look no further than the logistics industry.
Logistics is the commercial activity of transporting goods from the point of origin to the point of consumption. This is a complex operation involving the coordinating, moving, and housing of supplies. Logistics is an integral part of every material industry and will always be a necessity as long as goods are produced.
Global Logistics Industry Outlook
According to Research and Markets, “the global logistics market was worth 10.32 Billion USD in 2017 and it is estimated to grow to 12.68 Billion USD by 2023 with a CAGR (compound annual growth rate) of 3.49% between 2017 and 2023.”
Reasons cited for this predicted growth are an increase in global trade activities in developing economies, a rise in trade-related agreements, and advancements in information technology and transportation. The Asia Pacific region is predicted to be the leader of the global logistics market in the future, but the United States is not far behind. Currently, the U.S. is among the top ten leading global logistics markets and is the third-highest market in the world for third-party logistics (3PL) companies.
Domestic Logistics Industry Trends
As of 2018, transportation and material moving accounted for 7.1% of all U.S. jobs, employing one of the largest workforces in the country, surpassed only by food service, sales related occupations, and administrative careers. This number is expected to grow another 6% by 2026.
The U.S. economy is predicted to continue the pattern of growth we’ve seen in the past few years, with an increasing gross domestic product (GDP), as well as unemployment and inflation rates rising slower than federal target estimates. This trend will result in job growth, particularly in industries like construction, which is a key indicator of freight demand, according to Avery Vise (vice president of trucking research at FTR Freight Intelligence).
Additionally, the 2017 Tax Cuts and Jobs Act lowers the maximum corporate tax rate from 35% to 21%, the lowest it’s been since 1939. This same plan advocates a change from a “worldwide” tax system to a “territorial” tax system, which means multinational businesses would not be taxed on foreign profits, encouraging the reinvestment of those profits in the U.S. economy.
The Future of Logistics Careers
The logistics industry isn’t going anywhere. As long as there are businesses creating products for consumption, there will be a need to move those products. Not only that, but with the predicted growth of the U.S. and global economies, it’s likely that this market will expand along with that growth.
Additionally, 3PL providers are expected to continue occupying a large portion of the market. In 2017, American 3PL companies accounted for $168.4 billion, which is expected to rise to $266.1 billion by 2027.
Who is a Good Fit for the Logistics Industry?
Those who coordinate the moving and housing of businesses’ goods will need to be comfortable working with people across the country—or even the globe—to build trusting relationships with clients over the phone. Logistics is a complex industry, requiring attention to detail and the ability to retain a large amount of knowledge about the field.
The rapid growth of this industry will mean logisticians will need to excel in a fast-paced, competitive environment. In this exciting industry, those with ambition and tenacity will find themselves with limitless opportunities for career satisfaction and financial success.