Supply Chain Outlook for 2016 And Beyond

Posted by admin on Sep 17, 2015 3:24:37 PM

see_our_facebook_page_for_details_1At a popular Supply Chain Summit, several prominent economists presented their findings for the Logistics Economic Outlook for 2016 and beyond. We’ve summarized some of their findings and forecasts in order that our clients and followers might be armed with expert advice on what to expect in the coming years and how to plan on what’s ahead.

According to Brian Beaulieu, an economist with ITR Economics and keynote speaker of the summit, the unanimous opinion of the group is that they expect the domestic economy to do better across the next two calendar years, which means companies should be thinking now about how to scale up for and accommodate this expansion. The shortage of qualified logistics professionals is not limited to drivers. Industry trends also point to a shortage in qualified Logistics Operational and Management professionals. In addition, tightening capital markets are creating a shortage of expansion dollars to meet the forecasted increase in demand. Companies will need to have adequate levels of qualified labor, working capital, and equipment to successfully manage their growth and be profitable. Those companies that have to scramble to create capacity won’t be as profitable as those that have critical information with which to plan ahead.

Repercussions for Supply Chain Managers

The challenge for Supply Chain Managers has always been planning, as closely as possible, for the most efficient use of raw materials, manufacturing labor and equipment and distribution assets to meet demand with as little waist as possible. The expected increase in demand will put added pressures on managers and their assets. Being prepared to address the increase will have a profound affect on an organization’s profitability. Planning to increase capital investment and labor must be based upon reliable intelligence from proven Industry experts like those referenced in this blog as well as the management group at Land Link Traffic Systems.

What To Expect

The recent global stock market correction aside, the U.S. consumer is in pretty good shape and will be increasing his and her spending levels in 2016. Concurrently, the group is forecasting positive indicators for the European economy as well. This means that the two largest global economies will be engaged in a new, rising trend that’s going to begin in 2016. In addition, as Mexico continues to surpass Canada as a manufacturing resource, the country will be a crucial part of everyone’s business plan for 2016-18. Near-shoring is a growing reality, and Mexico is coming on very strong as a viable partner. 

To learn more about achieving the proper balance of service and cost within your supply chain, click the button below to download our free whitepaper on this supply chain topic.

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Topics: Supply Chain Management, Transportation News