CSCMP Releases the 31st Annual State of Logistics Report®

 Which Highlights How Supply Chains are Battered but Not Broken

 

The Council of Supply Chain Management Professionals (CSCMP) released the 31st Annual State of Logistics Report® during a virtual press conference and live webinar with presentation and panel discussions on June 22-23, 2020.
  
Annually, CSCMP collaborates with global strategic management consulting firm, Kearney, as the author and researcher, and with Penske Logistics continuing in its longstanding role as presenter of the report.
Across three-plus decades, the report has offered a snapshot of the American economy through the lens of the logistics sector in the overall supply chain. It is a rigorous compilation of leading logistics intelligence from around the world, shines a spotlight on industry trends, and offers key insights on the ever-evolving industry supply chains.
  
Currently, GDP forecasts for 2020 and 2021 are being revised downward as supply chains are navigating unprecedented waters in the United States and around the world.
  
Before the COVID-19 pandemic struck, supply chains were lauded for their ultra-efficient, single-source and just-in-time capabilities. Now, the report notes that the logistics field will need to construct entirely new levels of supply chain resilience. 
  
Companies that manufacture goods and services will begin to further value resilience in new ways and it will transform the way companies think about supply chains. 


CSCMP Members can watch the recording of the report presentation and panel discussion


  



Key findings from the 2020 report:

  • In 2019, the national economy completed a strong year with 2.3% growth, taking the U.S. economy to $21.43 trillion in GDP. The logistics industry supporting that economy grew as well, to $1.652 trillion in expenditures. Its productivity improved, bringing its cost to 7.6% of GDP, an improvement from 7.9% the previous year.
  • Road freight, the biggest segment of U.S. logistics spend, was already slowing down in 2019 after a torrid 2018 as years of scarce capacity and increasing rates reversed in favor of shippers. 
  • COVID-19 has been more economically damaging than a standard recession or an escalation of trade tensions. The current pandemic-driven recession ended 126 months of growth, the longest economic expansion in U.S. history.
  • The pandemic and public response has accelerated an already fast growth in e-commerce, which has different logistics needs than traditional retailing. 
  • When the economic recovery begins to occur, it will likely be uneven and staggered. 
  • The consumer confidence index dropped 18.1 points in early April; March saw an 11.9-point decline. 

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