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Top 5 Logistics/Warehousing industry stories from 2015

Top 5 Logistics/Warehousing industry stories from 2015

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Each week we share many news stories that reflect what is going on in our industry and how this affects our clients. Throughout 2015, we at On Time Logistics saw several stories that seemed to continue as a theme throughout the year. As is a tradition for this time of year, we wanted to review those stories and what we think that means for our industry and small business.

Onshoring/Reshoring

This first one might surprise you because at first glance, it seems more of a manufacturing story rather than logistics. The thing is, the continuous increase in onshoring and reshoring efforts has an effect on warehousing and logistics. Onshoring shortens supply chains. While usually considered a good thing, it also creates more of a need for warehousing space.

We see the onshoring efforts continuing in 2016 as retailers and other small businesses seek to find more secure and local manufacturing and supply chain management.

Driver shortage

According to the 2015 ATA Driver Shortage Report, the trucking industry expects to see a truck driver shortage of 48,000 drivers by the end of this year. The biggest cause for the shortage is the aging out of the workforce. Companies are working to increase pay, benefits and other incentives to attract more drivers. Even in our local market, finding truck drivers to handle last mile and other deliveries can be tough. The industry needs to find a quicker way to turn around this shortage trend as the need increases.

Drastic increase in warehousing needs

Warehousing is needed more now than ever, and we see this trend only increasing in 2016. Whether it’s in China or Northwest Arkansas, we saw increased demand for warehousing space. The trend was a big contributor to our move to a new location that offers more warehouse space and more truck docks.

All the trends point to making more warehousing available be it e-commerce, shorter supply chains, less retail space, or onshoring efforts.

Logistics security

Using technology to track inventory and shipping makes the process much more efficient and saves money. But, it also opens the supply chain up for more ways to steal. We saw an increase in logistics security risks and the ensuing efforts to manage those risks. As terrorism in the world continues to rise, we see the logistics security issue becoming paramount.

E-commerce rise

Last year 40 percent of all shopping happened online. Naturally, e-commerce rises even more during November and December each year and 2015 was no different. Numbers are still coming in (technically December isn’t even over!), but we’ve heard some delivery and fulfillment companies report an estimated 15 percent increase over last year.

We see that for 2016, we will see this increase even more. With some retailers trying out same-day delivery, curbside pickup, and other expanded delivery options, we think retailers will continue investing in their website and fulfillment services.

What trends did you see in your business in 2015? How will it affect your 2016?

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