Transportation and logistics are an integral part of almost every business, and their impact on the economy is not slowing down any time soon.
Transportation is among the more vital economic activities for a business. By moving goods from locations where they are sourced to locations where they are demanded, transportation provides the essential service of linking a company
to its suppliers and customers. It is an essential activity in the logistics function, supporting the economic utilities of place and time.
Spending on transportation, inventory- carrying costs and other shipping- related expenses as a share of gross domestic product (GDP) last year reached its highest level since 2014, the Council of Supply Chain Management Professionals said in its annual State of Logistics Report.
In fact, businesses spent a record $1.64 trillion on logistics in 2018, up 11.4 percent from the prior year and accounting for 8 percent of GDP, the report said. Industry experts view the logistics share of GDP as a measure of the efficiency of transportation and distribution networks, and last year’s figure was sharply up from a 7.5 percent share in 2017.
This year, Logistics Plus in Erie spearheaded efforts to establish National Logistics Day on June 28, 2019 to celebrate the important, growing logistics industry.
According to estimates, logistics expenses in the United States account for nearly 8 percent of everything we make and sell. That includes packaging, warehousing, shipping and more. The third-party logistics (3PL) industry — those who help businesses efficiently manage logistics across their supply chains (from 3PLs to truckers to warehouse managers) — represents an $800 billion industry on its own.
In this edition of the Business Magazine, we’ll take a look at some key providers and programs that keep businesses moving around the region — and the globe. We’ll also highlight the 85th anniversary of Kessel Construction, a Bradford, Pennsylvania-based design- build firm that has been the contractor of choice for many transportation- related businesses when it comes to their building needs.
In addition, we’ll hear from Penn United Technologies, headquartered in Cabot, Pennsylvania, about the innovation and investment it has made in manufacturing solutions for a variety of industries, including automotive and aerospace.
Plus, be sure to read this month’s Legal Brief article on how to better understand shipping terms for your business, as well as our On the Hill article on new legislation that is expected to energize Pennsylvania’s infrastructure.
To read the Business Magazine online, visit www.mbausa.org!