After a strong 2019, the logistics industry was initially traumatized by COVID-19 and the measures taken to reduce its spread, but logistics providers proved that they are critical as well as resilient.“Whether it’s delivering critical medical supplies or allegedly hoarded toilet paper, logistics is essential to national security and well-being,” said Michael Zimmerman, a partner with the global strategic management consulting firm Kearney and lead author of the 31st Annual State of Logistics Report.The 31st Annual State of Logistics Report was introduced by the Council of Supply Chain Management Professionals (CSCMP) and presented virtually by Penske Logistics on June 23.
In 2019, the logistics industry exhibited very good fundamentals. “Although almost nobody saw the COVID-19 crisis coming, the state of the industry in 2019 suggests that it could recover quickly,” Zimmerman wrote in the report.In 2019, U.S. business logistics costs rose 0.6 percent to $1.63 trillion, or 7.6 percent of 2019’s $21.43 trillion GDP. That decreased from 7.9 percent of GDP in 2018, which reflects better overall productivity, Zimmerman said. Additionally, road freight capacity improved, benefiting shippers, and parcel and last-mile delivery saw continued growth and significant innovation.