Logistics companies remain in high demand

New logistics and delivery start-ups are being created every day, fueled by the growing demand for efficient order fulfillment. 

Consumers are expecting faster, more convenient deliveries from their online orders than they ever have before. Now, small parcels are being delivered by bike messengers in cities, and huge shipments of retail products are sent across the country with the help of expansive trucking fleets.

The increased demand is in great part fueled by the continued growth of online shopping, with customers wanting the delivery of their items to be carried out efficiently and at low cost.

Leading companies like Amazon and Google are offering two-day and same-day shipping deals, causing consumers to become accustomed to a high standard of delivery service. To meet this demand, logistics companies are expanding their physical warehouse locations as well as the number of staff being employed.

The U.S. trucking industry alone, for instance, generates $600 billion in gross freight revenue and employs 6.8 million people. A wide variety of items needs to be transported, from machinery parts from factories and grains from the Midwest farms, to retail goods from department stores. 

Especially as we near the holiday season, we can expect to see delivery companies working to full capacity. Market experts are forecasting a high-sales fourth quarter, prompting many companies to hire thousands of seasonal employees.

Shipping and delivery will continue to emerge as a leading industry, because both small businesses and big-time corporations need third-party logistics companies to reliably transport their goods.

"We have tiny e-commerce companies reaching out but also monstrous companies doing the same," says investor Jeff Clavier. "It's a real pain point that exists in every stage."

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