34th Annual State of Logistics Report®
The 2023 State of Logistics Report was unveiled at the Indianapolis Motor Speedway on Tuesday, June 20, 2023, with the 34th annual publication finding that U.S. supply chains responded to the global volatility from the past two years by transforming supply chain networks to improve resilience against future disruption.
Produced annually for the Council of Supply Chain Management Professionals (CSCMP) by global consulting firm Kearney and presented by leading third-party supply chain provider Penske Logistics, the annual report offers a snapshot of the American economy via the lens of the logistics sector and its role in overall supply chains.
The report is a comprehensive compilation of leading logistics intelligence from around the world and shines a spotlight on industry trends and key insights on ever evolving supply chains across a number of sectors.
While last year’s report highlighted the need to get back in sync, the 2023 version focuses on how logistics operations can build long-term resilience in an effort to best serve customers through a variety of distribution channels.
Among the notable findings:
- A key report statistic, U.S. business logistics costs, shows an increase. USBLC now stands at a record $2.3 trillion (was $1.85 trillion last year), representing 9.1% of national GDP—the highest percentage of GDP ever.
- While consumers are continuing to return to stores, e-commerce sales are not slowing down. In 2022, the U.S. e-commerce market grew by 8%, to $1.03 trillion (was $871 billion). It is now 14.5% of the entire U.S. retail market.
- Third-party logistics providers are investing more capital into their technology offerings, as opposed to shippers (companies that provide goods and services). Respondents indicated that 96% of 3PLs have migrated to the cloud (shippers indicated 86% of them have), while 80% of 3PLs are investing in IoT (77% for shippers).
- The reshoring movement continues. For a number of businesses, reshoring has gone from a strategic possibility to a market reality. According to the Kearney Reshoring Index, American imports of Mexican manufactured goods have grown by 26% (dating back to spring 2020).