Process, Distribution & Logistics Consulting
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 7,600 process, distribution, and logistics consulting services providers in the US include a broad range of specialties, including manufacturing operations improvement; productivity improvement; production planning and control; quality assurance and quality control; inventory management; distribution networks; warehouse use, operations, and utilization; transportation and shipment of goods and materials; and materials management and handling. Firms may offer multiple services or specialize in a particular area.
Dependence on Skilled Labor
Despite a dependence on technology, the process, logistics, and supply chain consulting industry remains labor-intensive and reliant on skilled workers.
Competition from Alternative Service Providers
Process, distribution, and logistics consultants compete with a variety of alternative service providers, including accounting firms, management consultants, IT service providers, and transportation companies.
Industry size & Structure
The average process, distribution and logistics consulting services provider employs 22 workers and generates over $2 million annually.
- The process, distribution and logistics consulting industry consists of about 7,600 firms that employ about 166,000 workers and generate $16 billion annually.
- The industry is fragmented; the top 50 companies account for almost 33% of industry revenue.
- Large firms that offer process, distribution and logistics consulting services, which include C.H. Robinson and XPO Logistics, have a global presence.
Industry Forecast
Process, Distribution & Logistics Consulting Industry Growth
Recent Developments
Sep 11, 2024 - Manufacturing Sector Contraction Continues
- US manufacturing activity contracted in August 2024 for the fifth consecutive month, according to the Institute for Supply Management (ISM). The ISM’s Purchasing Managers Index (PMI) in August rose to 47.2% from a reading of 46.8% in July. A reading above 50% indicates manufacturing expansion. August’s New Orders Index decreased by 2.8 percentage points to 44.6%. The August Production Index dropped 1.1 percentage points to 44.8%. Of the 18 manufacturing industries tracked by the ISM, only five reported growth in August: primary metals; petroleum and coal products; furniture and related products; food, beverage and tobacco products; and computer and electronic products. Industries reporting contractions in August included textile mills; printing & related support activities; nonmetallic mineral products; plastics and rubber products; electrical equipment, appliances, and components; fabricated metal products; transportation equipment; wood products; machinery; paper products; chemical products; and miscellaneous manufacturing.
- As peak shipping season nears, freight forwarding firms are working with shippers to navigate a shifting air cargo market, according to freight rate analytics firm Xeneta and reporting by Supply Chain Dive. Some industry observers suggest recent increases in air cargo demand and exports from China could indicate further spikes as the shipping season unfolds. Low-value ecommerce shipments from China to the US increased 30% in the first seven months of 2023 compared to the same period a year earlier, according to Xeneta. In August, global air cargo demand was up 11% year-over-year. Air cargo demand continues to see increased demand amid the modal shift away from ocean cargo brought on by strife and cargo disruptions on the Red Sea. As forwarders and shippers vie for capacity ahead of the busy shipping, some carriers are also announcing surcharges.
- In September 2024, the US Postal Service announced it would increase shipping prices for some of its services for peak shipping season between October 6 and January 19, 2025. The USPS left prices unchanged during the peak season last year in a bid to compete with corporate shipping rivals. However, the Postal Service said it would raise rates to cover extra handling costs this year. Affected services include Ground Advantage, which will see a 6.4% price hike, Priority Mail (+5.5%), and Priority Mail Express (+4.9%). The price increases come as the Postal Service continues to operate in the red; the agency posted a $2.5 billion net loss for its third fiscal quarter, which ended July 30.
- In July, the Biden administration imposed tariffs on steel and aluminum imports from Mexico that contain metals originating in China, according to The Wall Street Journal. A 25% tariff will be placed on Mexican imports containing Chinese-made steel, and a 10% duty will be imposed on products with aluminum from China. US primary metals firms and other manufacturers allege China is avoiding steel and aluminum tariffs by routing them through Mexico and is dumping unfairly priced metals into the US market. Under the United States-Mexico-Canada Agreement, steel and aluminum trade between the US, Mexico, and Canada is typically duty-free. However, the metals must be melted and poured in one of the three countries to be exempt from tariffs. In a joint statement with the US, Mexico’s government said the latest US efforts would enhance Mexico’s import tariffs and improve protections for North American steel and aluminum markets.
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