Bright Prospects for Warehouse & Logistics 3PLs

Presented at the IWLA (The Association for Logistics Outsourcing) 113th Convention, the “2004 Business Outlook, ” an annual survey, noted that one-third of membership is bullish on growth this year. Another third of the membership looks for between 5 and 10% growth in business. Last year, some 31% felt that business would decline.

Almost half (46%) of those surveyed indicated they’ll be adding warehousing space this year. Too a full half of respondents said they’d add staff this year.

IWLA members see most growth potential in food, beverage and grocery; paper and related products; retail/general merchandising; pharmaceuticals; computers/high tech; and automotive and transport equipment.

With long-haul carriers pulling back from short-haul because of Hours of Service restrictions, IWLA members feel there is real opportunity for them to pick up business as a result.

Services provided by 3PLs projected at growth of 20% and more are assembly, customization, inventory control/vendor management, labeling, lot control, packaging and pick/pack operations.

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