Author’s note: This summer brings the latest update on the health of U.S. logistics. While some may quibble with its details, the “19th Annual State of U.S. Logistics Report” generally is regarded as an accurate barometer of what the nation is experiencing. Moreover, many companies use this study as a benchmark.
For almost 15 years, the late Bob Delaney developed and delivered the report, which often carried his name among logistics practitioners. Since Delaney’s death in 2004, his former assistant, Rosalyn Wilson, began handling the report.
My first inclination was to title this piece, “Surviving the slump.” But I realized, perhaps, it should be amended to say we’re “surviving a continued slump” - considering that we have seen a steady climb in logistics costs during the past four years. Unfortunately for everyone, there are no signs of this trend abating. At first glance, a review of the year-over-year impact on the economy is fairly minimal. In 2007, logistics costs represented 10.1 percent of Gross Domestic Product (GDP) compared to 9.9 percent in 2006.