The economy seems to be on a role and, of course, it's happy times at home. Let's look at what is driving this current surge and how logistics plays a key role. Every major economic indicator points to a robust economic outlook. The major indicators are construction, healthcare, energy, agriculture, manufacturing, and transportation. It's the last two sectors which we are most interested in.
Commercial and residential construction is up significantly, particularly in most U.S. cities and surrounding suburbs. The residential housing market is in its strongest seller’s market since the pre-2008 housing crash. Domestic manufacturing is enjoying similar growth as is farm production.
One thing is certain, other than death and taxes, we will never run out of those in need of healthcare. The transformation of the industry in the 80's from annual doctor’s visits to The HMO system created a health management goliath making healthcare the massive business it is. And the pharmaceutical industry has been perhaps the segment which has benefited the most from this metamorphosis.
Similar to the same case with healthcare. We gotta have it. America is in the midst of an energy renaissance. Thanks to technological advancements in drilling and hydraulic fracturing of shale formations, oil and gas production has increased dramatically. We are becoming less reliant on imported crude than in recent decades. The U.S. also has more wind energy powering its grid than any other global nation and is making strides in solar power technology.
The agriculture industry has been bolstered by exports as the global demand for agricultural products continues to surge. The United States export some $140 billion worth of agricultural goods in 2017. A staggering amount when you consider what it takes to feed us domestically. Thanks to technological advances in the industry, low farm unemployment and investment in agricultural infrastructure, the sector is likely to continue strengthening the U.S. economy.
As Logistics professionals the manufacturing sector is obviously a component which we monitor closely. Manufacturers contribute $2.09 trillion directly to the economy, an increase from $1.73 trillion over the last decade. The sector accounts for 12% of the GDP and supports 17.6 million U.S. jobs.
Not surprisingly, growth in manufacturing has led to an enhancement of the logistics and transportation sector. Private companies in the general-freight trucking sector have showed continued sales and profit growth in recent years. As a general indicator of transportation services demand suggest an increase in domestic shipments which makes sense given our manufacturing surge at home. Transportation operations personnel are perhaps the most astute in predicting how the manufacturing sector is operating week to week based simply on demand for available equipment. We have our finger on the pulse of the U.S. economy.
Logistics plays a huge role within today’s economy. Just imagine a world where nothing was delivered or transported between manufacturers and consumers. The LTL strike of the late 90's gave just a small perspective of the crucial role transportation providers play in our everyday lives.
The trend of third party logistics utilization is on the rise. Globally, the logistics industry has seen an immense growth over the past decade, with 40% of organizations now using 3PL's in an industry which has become so technologically advanced, operationally challenging and increasingly regulated that the guidance of experts from a 3 PL can mean the difference between black or red ink on the bottom line of your companies’ financial statement. Make sure your utilizing your freight spend as efficiently as possible by taking advantage of a no cost or obligation supply chain practices review by our professional staff at Land Link Traffic Services. Call or contact us via www.land-link.com today. Don't put it off. Do it right now.