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Global Recession is Fostering Consolidation in the Logistics and Transportation Industry Finds Frost & Sullivan - Logistics service providers (LSPs) and end user companies can expect unique opportunities that would be inconceivable in a healthier economy
Global Recession is Fostering Consolidation in the Logistics and Transportation Industry Finds Frost & Sullivan

 

NewswireToday - /newswire/ - London, United Kingdom, 2009/11/18 - Logistics service providers (LSPs) and end user companies can expect unique opportunities that would be inconceivable in a healthier economy.

   
 
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The global recession has actually created a climate in which they can re-align business processes to emerge stronger from the ongoing economic crisis.

New analysis from Frost & Sullivan (automotive.frost.com), Global Logistics and Transportation Industry Outlook 2009: Impact of Economic Slowdown on the Future of The United States, The European Union and The Asia Pacific, finds that the global transportation and logistics industry is set to tread a novel path out of the ongoing economic crisis.

“The current crisis has underscored the need to ease trade policies, reduce tariffs and expand multilateral trade agreements,” notes Frost & Sullivan Research Associate Prasanna Sriraman. “In addition, we are seeing better sharing of global trade information as well as the acceleration of pending business proposals to facilitate trade. This is opening up a wealth of opportunities for the global logistics and transportation industry.”

Many governments have focused on stimulating trade with new trade policies and multilateral trade agreements. Besides these measures, tariff reductions are playing a pivotal role in improving trade flow.

While this bodes well for the transportation and logistics industry, LSPs are facing a tough time. Their businesses are intertwined with particular industry sectors. Fluctuating demand, the liquidity crunch in the market as well as this narrow focus on industry sectors, has put LSPs in a challenging situation.

“As most sectors including automotive, retail and consumer electronics are affected by the recession, so to are the LSPs that serve them,” explains Sriraman. “In addition, some LSPs focus only on particular sectors, which when affected, pulls the LSP down along with the market.”

LSPs and end user companies related to different industry sectors must collaborate among themselves and with their suppliers to create the economies of scale needed to survive the ongoing crisis.

Producers of goods within the same industry must co-operate, ignoring the need to make competitive gains, to ensure full container loads, thereby reducing costs. Similarly, LSPs must collaborate to offer services that would reduce operating costs and optimise asset usage.

“Large trade volumes can be generated by following these strategies,” concludes Sriraman. “This would bring about the much needed cost reductions that could be passed on to consumers, in turn increasing market demand.”

Global Logistics and Transportation Industry Outlook 2009: Impact of Economic Slowdown on the Future of The United States, The European Union and The Asia Pacific is part of the Automotive & Transportation Growth Partnership Services programme, which also includes research in the following markets: 360 Degree CEO Perspective of the Global Logistics Industry, Logistics Industry Benchmarking in India, ASEAN Transportation & Logistics Competitive Benchmarking Assessment – Voice of Customer Study Indonesia and, Analysis of the German and the United Kingdom Markets for Insight Logistics Services. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, please email Monika Kwiecinska, Corporate Communications, at monika.kwiecinska[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brief brochure will be emailed to you.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.

Global Logistics and Transportation Industry Outlook 2009: Impact of Economic Slowdown on the Future of The United States, The European Union and The Asia Pacific / M41C

 
 
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Global Recession is Fostering Consolidation in the Logistics and Transportation Industry Finds Frost & Sullivan

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