Demand for quality logistic services on the rise

August 27 2013

It is no shock that the business world relies on logistics and the supply chain as a crucial part of daily operations. However, looking at the actual numbers puts things into perspective.

According to a recent article from Material Handling and Logistics, in 2012, businesses in the U.S. spent $1.3 trillion on logistics. That is a growth of $43 billion from the year before and is the highest it has been since 2008. While that seems like positive growth, there is an underlying theme of shipping problems caused by the recession.

"We are experiencing a new order that is translating into the new way of life for the economy and the logistics and supply chain sectors for the foreseeable future," said Rosalyn Wilson, the author of the annual State of Logistics Report.

What Wilson is referring to is a new trend characterized by slowing growth and job creation, lower reliability and the capacity is not increasing quickly enough to meet demand. This is happening because many trucking companies were not able to survive the economic downturn. On top of that, government regulations that require environmentally-friendly engines and reduce the time that drivers can be on the road make it more costly to do business. Now that things are recovering, the demand for quality logistics services is highly outpacing the supply.

This means companies need to start thinking outside the box when it comes to shipping practices. A local delivery service can help solve some of these problems and keep packages moving.