DENVER, Col.--Penke Logistics has sponsored a survey of Third-Party Logistics Provider CEOs, released this week at the Council of Supply Chain Management Professionals (CSCMP) Annual Global Conference in Denver, Colorado. The survey revealed that despite a slow economy, North American CEOs have their sights set on growth, expecting their companies to increase revenues by an average of 14.6 percent over the next three years.
This year, 3PL CEOs, surveyed in North America, Europe and the Asia-Pacific regions, are generally optimistic about company and industry growth prospects over the next one and three-year periods. North American and European CEOs forecasted higher three year company revenue growth projections than last year, 14.6 percent and 10.3 percent, respectively. For the three-year period, Asia-Pacific CEOs projected 11.6 percent growth, down from 12.5 percent in 2012, said the survey.
The CEOs were also asked to project regional 3PL industry revenue growth rates for the next three years in all three regions. For that three-year period, the CEOs projected average regional revenue growth rates of 8.29 percent in North America, 5.9 percent in Europe and 8.0 percent in the Asia-Pacific region.
The survey was presented by survey author, Dr. Robert Lieb, Professor of Supply Chain Management at Northeastern University’s D’Amore-McKim School of Business, and Joe Carlier, Senior Vice President of Sales for Penske Logistics. The findings analyze responses from 34 major third-party logistics company CEOs across North America, Europe and Asia-Pacific whose companies generated approximately $50 billion in revenue in 2012. The report was co-authored with Dr. Kristin Lieb, Associate Professor of Marketing Communications, Emerson College. The survey is underwritten by Penske Logistics, a leading provider of third-party logistics services.
Globally, 52 percent of companies either met or exceeded their revenue projections in 2012, down from 63 percent in 2011. More than two-thirds of these logistics companies were profitable during 2012. The continued instability of the Euro-zone economy and migration of some manufacturing out of China meant lower profitability in the Europe and Asia-Pacific regions (50 and 56 percent experienced moderate profitability, respectively). However, regional opportunities are instilling confidence in the industry.
“Despite Euro-zone challenges and some slowing of manufacturing activity in China, opportunities to expand services geographically have both regions poised for growth,” commented Dr. Robert Lieb. “Expansion into eastern Europe and Russia and an increased focus on servicing domestic consumption within China provide 3PLs with the opportunity to strengthen and stabilize their operations in those regions by filling out the services offered and customer base.”