CEOs give outlook on 3PL industry growth
Despite a slow economy, North American CEOs expect their companies to increase revenues by an average of 14.6 percent over the next three years, according to the 20th Annual Survey of Third-Party Logistics Provider CEOs.
This year, 3PL CEOs, surveyed in North America, Europe and the Asia-Pacific regions, are generally optimistic about company and industry growth prospects over the next one- and three-year periods. Thirty-four CEOs were surveyed.
North American and European CEOs forecasted higher three-year company revenue growth projections than last year, 14.6 percent and 10.3 percent, respectively. For the three-year period, Asia-Pacific CEOs projected 11.6 percent growth, down from 12.5 percent in 2012.
The CEOs were also asked to project regional 3PL industry revenue growth rates for the next three years in all three regions. For that three-year period, the CEOs projected average regional revenue growth rates of 8.29 percent in North America, 5.9 percent in Europe and 8 percent in the Asia-Pacific.
The survey authors are Robert Lieb, professor of supply chain management at Northeastern University's D'Amore-McKim School of Business, and Kristin Lieb, associate professor of marketing communications at Emerson College. Penske Logistics sponsored the survey.
Globally, 52 percent of companies either met or exceeded their revenue projections in 2012, down from 63 percent in 2011. More than two-thirds of these logistics companies were profitable during 2012.
"Despite Eurozone challenges and some slowing of manufacturing activity in China, opportunities to expand services geographically have both regions poised for growth," Lieb said. "Expansion into Eastern Europe and Russia and an increased focus on servicing domestic consumption within China provide 3PLs with the opportunity to strengthen and stabilize their operations in those regions by filling out the services offered and customer base."