Order shipped: Industry demand will rise in-line with increased freight volumes

Although companies are increasingly outsourcing order-fulfillment services to industry operators to focus on core business functions, the industry has suffered in the wake of lower trade volumes, slow growth in consumer spending and decreased demand from retail trade over the past five years. Declines have been mitigated, however, by rising internet usage and online shopping, which has spurred demand for industry services. The Third-Party Logistics industry is expected to recover over the five years to 2021 as the US economy strengthens and inventory from US manufacturers, wholesalers and retailers grow...purchase to read more.

Industry Statistics & Market Size
Revenue
$167bn
Annual Growth 11-16
3.8%
Forecast Growth 16-21
Profit
Employment
379,228
Businesses
18,704
Market Share of Companies

Industry Threats & Opportunities

  • The slowdown in emerging markets and trade are anticipated to create potential headwinds for the industry
  • As freight volumes grew, demand for services provided by industry operators rose
  • If the US manufacturing sector continues to underperform, demand for industry services will suffer
  • Industry Report - Industry Locations Chapter

    Most industry activity is concentrated in states with high levels of manufacturing, trade and other commercial activities, namely the Southeast, West and Mid-Atlantic regions. Because of its large population and commercial base, the Southeast region has the largest share of industry establishments at 25.1%. The Southeast represents 25.6% of the US population and houses major US ports. The region also hosts a large proportion of rail freight employees and rail maintenance and support enterprises.The West is the second-largest region in terms of industry establishments with 19.7%. Ports on the West Coast are major transit points, especially for goods entering the country from Asia. Freight is then transported via roads and railways from ports on the West Coast to the East Coast. Cal...purchase to read more.

    Additional Insights for the Third-Party Logistics Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Third-Party Logistics Industry are

  • Effective quality control
  • Access to the latest available and most efficient technology
  • Proximity to key markets
  • IBISWorld analysts also discuss how external factors such as Freight transportation services index and Industrial production index in the Third-Party Logistics industry impact industry performance..

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    What's in this report

    What is the Third-Party Logistics Industry?

    Third party logistics (3PL) companies provide outsourced logistics services to clients. Operators typically provide integrated supply chain solutions which include, but are not limited to, warehousing, forwarding, packing, consulting, brokerage and transportation documentation. In particular, 3PL providers will tailor and incorporate their services into their customer’s supply chain based on client’s needs. All revenue in this report is gross revenue.

    Industry Products
  • Transportation management
  • Warehousing and related services
  • Other services
  • Industry Activities
  • Logistic consulting
  • Transportation management
  • Forwarding
  • Packing
  • Freight brokerage
  • Warehousing
  • Dedicated contract carriage
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Freight transportation services index
  • Industrial production index
  • Consumer spending
  • Total trade value

  • Current Performance
    Demand expands Competition and internal dynamics
  • Chart: Revenue Growth

  • Industry Outlook
    Persistent demand conditionsChallenges and internal dynamics
  • Table: Third-Party Logistics Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Third-Party Logistics Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Manufacturing
  • Wholesale Trade
  • Retail Trade
  • Transportation and Warehousing

  • Key Selling Industries
  • Forklift & Conveyor Manufacturing
  • Industrial Building Construction
  • Local Freight Trucking

  • Products & Services
  • Transportation management
  • Warehousing and related services
  • Other services
  • Chart: Third-Party Logistics Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Industrial
  • Other markets
  • Retail and wholesale
  • Transportation market
  • Chart: Major Market Segmentation for the Third-Party Logistics Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchases Wages Other
  • Chart: Cost Structure Benchmarking – Sector vs Third-Party Logistics

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Third-Party Logistics Industry

  • Industry Globalization
    CH Robinson Worldwide Inc.,
  • Table: CH Robinson Worldwide Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Third-Party Logistics Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Third-Party Logistics Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • Freight transportation services index (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Forwarding
  • Arranging the storage and shipping of goods on behalf of its shippers.
  • Fulfillment
  • The process of delivering a product to a customer.
  • Integrated Logistic Service
  • Provision of transportation activities from door to door through the vertical integration of the supply chain.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Third-Party Logistics can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Third-Party Logistics:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Third-Party Logistics market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Third-Party Logistics, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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