Large and small manufacturers and retailers are turning to 3PLs to manage warehousing and transportation. This allows manufacturers and retailers to focus on their customers and the things that set them apart from their competitors. Additionally, 3PLs continue to expand service offerings to meet the changing needs presented by omni-channel businesses.
U.S. 3PL Market Forecasted to reach $154 billion in 2014
The U.S. Third Party Logistics market gross revenue grew 3.2% from 2012-2013 according to Armstrong & Associates, Inc. The research and consulting firm also estimates that growth will be 5.2% for 2014 bringing the U.S. market size to $154 billion.
Net revenues are expected to increase by 4.3% from $64.6 billion in 2013 to $67.4 billion in 2014. Domestic Transportation Management (DTM) should increase 7.5%.
Growth in DTM continues to be fed by the expansion of the base of customers using third-party logistics providers (3PLs). It is common now for customers with as little as $3 million in transportation spend to use at least one 3PL.
Similarly, third-party logistics services provided are more systems-driven rather than just load-by-load transactions. Systems based “Enterprise Accounts” constitute a significant part of the business for all major domestic transportation managers.