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
Jul 12, 2024 - Industry Growth to Improve, Then Flatten
- The process, distribution, and logistics industry is expected to experience stronger growth in 2025 after a slowdown in 2024. The industry’s year-over-year sales growth is projected to decline to 3.1% in 2024 after rising 8% in 2023, according to Inforum and the Interindustry Economic Research Fund, Inc. The process, distribution, and logistics industry is forecast to notch sales growth of 5.1% in 2025, then see flat but steady average annual sales growth of 5.5% through 2028, according to Inforum and the Interindustry Economic Research Fund, Inc.
- 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.
- Many manufacturers are tempering their expectations for a second-half turnaround amid sluggish demand, elevated supply costs, and ongoing geopolitical uncertainty, according to Manufacturing Dive. In addition to uncertain market conditions, high interest rates have kept a lid on capital expenditures. The US presidential election and wars in Ukraine and Gaza have the potential to drive up manufacturers’ supply and logistics costs. Conflict in the Red Sea region has already increased logistics costs for shippers, and some economists suggest election uncertainty could harm the value of the US dollar, increasing costs. Supply and logistics costs are expected to rise as the peak shipping season approaches. Some industry observers suggest manufacturers shipping on the spot market lock in contracts before fall to reduce costs.
- According to a survey by Software Advice, supply chain managers at small to medium-sized (SMS) businesses continue to struggle with inflation, labor shortages, business disruptions, and cyber threats. About 45% of supply chain managers at SMS businesses rank inflation as their top concern. For about a third of those surveyed, the possibility of a recession was their leading concern. About 80% of those surveyed reported trouble attracting and retaining talent, and more than 40% had experienced a cyberattack in the previous 12 months. To manage costs, more than half of respondents reported negotiating supplier and logistics contracts, and nearly 40% said they participate in group purchasing organizations to boost their buying power. More than 45% of supply chain managers said they are maintaining or increasing their cybersecurity budgets. The survey included more than 1,000 SMS business supply chain management respondents in the US, UK, Australia, France, and Germany.
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