Asia-Pacific had the most number of logistics companies that said they either met or exceeded their revenue growth projections for 2011, and had the most optimistic growth projections for 2012, a survey said.
Majority of logistics companies polled for the 18th Annual Survey of Third-Party Logistics Providers reported improved economic conditions in 2010. In Asia-Pacific, 90 percent of companies indicated meeting or exceeded their revenue growth projections for the year.
In North America, 88 percent of companies surveyed indicated meeting or exceeding revenue growth forecasts, as opposed to only 55 percent of companies surveyed in Europe.
Growth projections are most optimistic in Asia, with companies expecting to grow 15.8 percent in the next year, as compared to 10.8 percent expected in North America and 8.4 percent in Europe.
The findings analyzed responses from 36 third-party logistics company CEOs across North America, Europe, and Asia-Pacific whose companies generated approximately $58 billion in revenue in 2010.
The Asia-Pacific market is expanding, according to the survey, with CEOs seeing a variety of growth opportunities in the region, including increased volumes in China and India. The report also cited more extensive road transport services to support manufacturing in China as it moves inland.
Most significant in the Asia-Pacific region for third-party logistics services during the past year was the diminishing role of Guangdong and Hong Kong as manufacturing centers, as manufacturing shifts to other low-cost countries and to China’s western provinces, the survey said.
Demand for “all-in-one” supply chain services increased in 2010, as the industry in Asia-Pacific becomes more sophisticated.
With few exceptions, the CEOs are more bullish about the financial prospects of their companies over the next one and three year periods.
One-year company revenue growth projections were 15.8 percent for Asia-Pacific, 10.8 percent for North America, and 8.4 percent for Europe. The average three-year company growth projections were 14.6 percent for Asia, 10.3 percent for North America, and 9.1 percent for Europe.
One-year regional 3PL industry revenue growth projections averaged 9 percent for Asia-Pacific, 6.8 percent for North America, and 6.1 percent for Europe.
The average three-year regional 3PL industry growth projections were 10.3 percent for Asia-Pacific, 8 percent for North America, and 6.3 percent for Europe.
The survey was recently presented at the Council of Supply Chain Management Professionals Annual Global. Poll participants included Cardinal Logistics, DSC Logistics, DHL Exel Supply Chain, Genco Supply Chain Solutions, Kuehne+Nagel Logistics, Menlo Logistics, Penske Logistics, Schenker, Schneider Logistics, Transplace, UPS Supply Chain Solutions, UTi Integrated Logistics, Caterpillar Logistics Services, Agility Logistics, Werner Logistics, Yusen Logistics, MIQ Logistics, CEVA Logistics, and Wincanton.
Photo by Port of San Diego
