Industry Analysis & Industry Trends
Over the past five years, the Global Courier and Delivery Services industry recovered from low levels caused by the global economic slowdown. The global economic downturn caused global consumer spending and the total value of world trade to decline in 2009, as the largest economies in the world from the United States to Europe, went into recession. Consequently, demand for the transportation of packages and parcels diminished, causing industry revenue to plummet in 2009. Nevertheless, IBISWorld forecasts that revenue for the Global Courier and Delivery Services industry will grow... read more
The industry has a low level of capital intensity. Because the industry is labor-intensive, industry operators spend much more on wages than on capital investments. Industry operators are expected to invest about $0.11 of capital for every dollar of labor in 2014. Labor expenses include the wages and salaries paid to drivers, operators of call centers and drop-off locations, pilots, loading crews and ground and administrative staff. Capital intensity has fallen over the past five years as Western operators initially cut back in capital investments amid the global economic slowdown.
For larger operators, capital intensity is slightly higher. Efficient communications equipment, newer and more advanced vehicles, and computer-assisted work scheduling reduce the need for labor... read more