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Logistics Industry Sees Good Times Ahead

Aug. 14, 2018
“And while there is a great amount of optimism, there are cautionary concerns with inflationary pressures as a majority plan to increase pricing and pass costs

Over the next three months, 70% of the logistics and transportation managers, surveyed in July by TCompanies, said the U.S. economy will continue to thrive.

 And because of that, revenue and profitability are expected to increase as well.

 “The survey numbers confirm what we have been feeling for some time in the logistics and transportation industry – overall, things are going very well,” said Tom Burke, CEO of TCompanies.

 “And while there is a great amount of optimism, there are cautionary concerns with inflationary pressures as a majority plan to increase pricing and pass costs on to customers in the next three months.”

 The following are highlights from the survey. 

 US Economy

 Optimistic -- 73.71%

Neutral -- 18.29%

Pessimistic -- 8.00%

 Company Hiring

Hire more people -- 64.37%

Keep workforce at same level -- 30.46%

Reduce workforce -- 5.17%

Company Revenues

Increase -- 74.86%

Stay same -- 18.86%

Decrease -- 6.29%

Company Profitability

Increase -- 67.24%

Stay same -- 25.29%

Decrease -- 7.47%

 Wage Growth

 Increase wages -- 38.29%

Keep wages the same -- 57.71%

Lower wages -- 4.00%

Pricing of goods/services

Increase prices -- 57.71%

Stay the same -- 39.43%

Decrease prices -- 2.86%

Obstacles to growth

Workforce shortage -- 43.60%

Regulatory issues -- 18.60%

Trade tariffs -- 17.44%

Access to credit -- 8.72%

Wage costs -- 5.23%

Repair expense -- 4.07%

Energy costs -- 2.33%

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