The Third-Party Logistics (3PL) industry has grown steadily over the five years to 2019, in line with overall demand. As the US economy and various global macroeconomic factors, such as consumer spending, industrial output and trade, improved freight volumes increased and demand for logistics services rose as a result. In particular, the increasingly complex global supply chain has encouraged shippers to outsource to 3PL providers, which has led to rising industry demand. Despite increasing demand, industry profit margins have remained slim over the past five years, as 3PL providers operate in a highly competitive market. Due to these circumstances, many companies have looked to merge with or acquire competitors, which enabled players to achieve economies of scale, expand into growing supply chain markets, such as healthcare, and offer more comprehensive logistics services. Over the five years to 2024, industry revenue is anticipated to rise. Growth in consumer spending, industrial production and trade are expected to continue to drive freight volumes, which will generate rising demand for logistics services offered by 3PL operators.
Third-party logistics (3PL) companies provide outsourced logistics services to clients. Operators typically provide integrated supply chain solutions which include, but are not limited to, warehousing, forwarding, packing, consulting, brokerage and transportation documentation. In particular, 3PL providers will tailor and incorporate their services into their customer’s supply chain based on the client’s needs. All revenue in this report is gross revenue.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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