The Physical Internet. Customized manufacturing. Crowd-sharing. Like most other industries, logistics is currently facing immense disruption. New technology, new market entrants, new customer expectations and new business models are forcing logistics companies to adapt or die. For those that can develop effective strategies to meet these challenges, the opportunities are well-worth the risks that come with change – including new career choices for professionals who are fluent in the future language of logistics.
The importance of the logistics industry to the global economy cannot be overstated. By 2023, the market will grow to £15.5tn, with an estimated 54.5bn tonnes of goods being moved annually. The industry remains highly fragmented, with the top four players, Deutsche Post DHL, Ceva Logistics, UPS and FedEx controlling less than 15% of the global market – furthering job growth opportunities as they fight to expand their market reach, as well as contend with new players who enter the arena. In the US alone, there are currently nine million Americans working in the logistics industry. The sector is on the increase as US businesses spent a record $1.64tn on logistics in 2018, up 11.4% from the prior year and accounting for eight percent of GDP. Industry experts view the logistics share of GDP as a measure of the efficiency of transportation and distribution networks, and last year’s figure was sharply up from a 7.5% share in 2017 (CIPS.org)
As the global economy has expanded following a slowdown at the start of the decade, logistics has become increasingly more important. Estimates provided by the US Department of Labor show that logistics jobs increased by 25.5% for the period 2010 to 2020 – with growth set to continue, as 300,000 jobs will be created every year, nationally. The average salary for someone working in logistics has increased by 39% over the last decade and projections from the Bureau of Labor Statistics suggest a further of increase of ten percent over the next four years, making it a lucrative time to work in logistics.