No matter what the economy businesses will always need shipping.
Shipping is an integral part of the economy at virtually every level. Unlike many food or retail franchises, shipping and transportation may not be trendy, but it is extremely stable. And, given the global reliance on all forms of shipping and transportation, it's not as drastically affected by economic fluctuations as many other industries.
As companies continue to see an increase in their shipping volumes, the third party logistics (3PL) industry has grown significantly over the past decade and is expected to hit $1.1 trillion by 2022.
Today, the U.S. freight industry market has grown to over $700 billion and is projected to
grow by 63% to $1.3 trillion annually by 2024.1 And, guess who is one of the top 3PLs in
North America according to Global Trade magazine?
The demand for overnight and small package shipping services also continues to increase.
With the shifting focus to ecommerce, businesses' increased emphasis on information
management and just-in-time systems that use small, more frequent deliveries, express
shipping has grown to over $80 billion in the U.S. alone.2
Given businesses ever-increasing need for transportation management, the 3PL industry
has progressed significantly in a relatively short period of time. Shippers rely on 3PLs for
numerous value-added services and discounts to increase efficiencies and decrease costs.
Since 2000, the U.S. 3PL market has nearly tripled from $56 billion to $154 billion in 2014.3
1 ATA U.S. Freight Transportation Forecast to 2024
2 Couriers & Local Delivery Services Market Research Report: NAICS 49222. IBISWorld Market Research. (Aug 2013). Retrieved from http://www.ibisworld.com/industry/default.aspx?indid=1950
3 Armstrong & Associates: 2014 3PL Market Analysis Report