- According to the State of Logistics Report®, U.S. business logistics costs, which now stand at a record $2.3 trillion (compared to $1.85 trillion last year), represents 9.1% of national GDP, the highest percentage ever recorded.
- Despite a return of consumers to physical stores, e-commerce sales continue to surge.
- The reshoring movement continues to gain momentum. The Kearney Reshoring Index indicates a 26% increase in American imports of Mexican manufactured goods since spring 2020.
Lombard, IL (June 20, 2023) – Today, the unveiling of the 2023 State of Logistics Report® took place at the iconic Indianapolis Motor Speedway. This 34th edition of the annual publication, produced for the Council of Supply Chain Management Professionals (CSCMP) by global consulting firm Kearney and presented by Penske Logistics, a leading third-party supply chain provider, presents a comprehensive overview of the logistics sector’s role in supply chains and offers valuable insights into the American economy.
The report provides a compilation of cutting-edge logistics intelligence from around the world, shedding light on industry trends and the continuous evolution of supply chains across various sectors. In contrast to last year’s focus on regaining synchronization, the 2023 report emphasizes the significance of building long-term resilience in logistics operations to effectively serve customers through diverse distribution channels.
State of Logistics Report® Findings
Notable findings from the report include key statistics such as the increase in U.S. business logistics costs, which now stands at a record $2.3 trillion (compared to $1.85 trillion last year). This represents 9.1% of national GDP, the highest percentage ever recorded. Despite a return of consumers to physical stores, e-commerce sales continue to surge. In 2022, the U.S. e-commerce market grew by 8% to reach $1.03 trillion (previously $871 billion), comprising 14.5% of the entire U.S. retail market.
Furthermore, the report reveals that third-party logistics providers (3PLs) are investing more capital in their technology offerings compared to shippers. An overwhelming 96% of 3PLs have migrated to the cloud, while 80% are investing in the Internet of Things (IoT). In contrast, 86% of shippers have transitioned to the cloud, and 77% are investing in IoT. Additionally, the reshoring movement continues to gain momentum. The Kearney Reshoring Index indicates a 26% increase in American imports of Mexican manufactured goods since spring 2020. Reshoring and nearshoring should positively influence the selection of reusable pallet and container systems.
Mark Baxa, CSCMP President and CEO, highlights the significance of the report, stating, “I believe supply chain leaders will find this year’s Annual State of Logistics Report to be one of the very best shared with CSCMP’s 10,000 members worldwide.” He encourages readers to explore the report thoroughly and consider the necessary actions for maximum logistics success in the future. Baxa emphasizes CSCMP’s commitment to providing relevant and high-quality content throughout the year to support the report’s findings.
Balika Sonthalia, Senior Partner at Kearney and co-author of the 2023 State of Logistics Report, stresses the need for strategic capacity building as the logistics sector moves forward from past challenges. Sonthalia underlines the importance of proactive planning to address geopolitical tensions, cybersecurity threats, climate change and related natural disasters, slowing e-commerce growth, and global recessionary factors.
Andy Moses, Senior Vice President of Sales and Solutions at Penske Logistics, recognizes the dramatic increase in supply chain costs, reaching a record $2.3 trillion. He emphasizes the critical role that third-party logistics providers like Penske play in helping shippers navigate the volatile logistics market. Moses highlights the strength of the company’s development activity, reflecting shippers’ active search for solutions in the current landscape.
The 34th Annual State of Logistics Report is available for download at cscmp.org, providing valuable insights and strategic guidance for supply chain professionals seeking to navigate the ever-changing logistics landscape. The report is free to members and $299 for non-members.